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Govt shoots down Quitugua proposal
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Posted on Dec 11 2006
The CNMI government cannot afford to reprogram savings from the austerity holidays to the hiring of more personnel for the Northern Marianas College, the Fitial administration said yesterday.
According to press secretary Charles P. Reyes Jr., it will be difficult to grant the request of House Vice Speaker Justo S. Quitugua to give NMC $562,500 from the savings resulting from Public Law 15-24.
“As much as NMC, or the Public School System, or any other agency needs funds, it will be difficult to divert money from the austerity holiday savings. The money that we’re not spending because of the austerity holidays is not really savings. We are already in deficit, so that money only reduces the deficit. There’s no tangible cash to reprogram,” Reyes said.
He added that the government may actually have to implement more cost-cutting measures in view of the imminent closure of Saipan’s apparel company, Concorde Garment Manufacturing. Some 1,400 workers will lose jobs when the factory shuts down in February 2007.
The government estimates that Concorde’s closure may compute to losses of $17.6 million in gross sales by other CNMI businesses, a loss of 700 jobs in the private and public sector, and a loss of $11.8 million in wages paid to other employees in other CNMI businesses and government. The total loss to the CNMI could be $12.73 million in lost taxes and fees, including business gross revenue taxes from other businesses and local sales.
Quitugua has authored a resolution asking the governor to reprogram $562,500 from the austerity holidays so NMC can hire personnel in accordance with the recommendation of its accrediting agency.
The Western Association of Schools and Colleges recommends that NMC hire directors for information and learning technology, admissions and records, library programs and services, operations, and human resources. WASC also urges NMC to fill the positions of dean of community programs, chief accountant, maintenance manager, two additional instructors for the School of Education, and one additional instructor for the School of Nursing.
