Fall scholars face another drastic cut in financial grants

Scholars of the Saipan Higher Educational Financial Assistance will see a 25- to 50-percent cut in their financial awards beginning fall semester 2012, according to board chair Jose Mafnas.

This is due to the dwindling financial situation of the program, which relies solely on revenues from poker machines and licenses.

“Based on anticipated funds from poker fees, we’re seeing a bad figure so we really need to make a decision. Definitely, there will be another cut on the scholars’ financial assistance…if not the same [as last time] it may probably be higher for fall 2012 semester,” said Mafnas.

This “adjustment” is the only way the board can ensure the continuity of SHEFA’s programs, he added.

Besides the reduction in financial awards, the board is also looking into terminating either the field of study grant or the incentive award, Mafnas said after yesterday’s board meeting.

Yesterday, the awards committee was tasked to come up with the final recommendation in anticipation of the start of the fall 2012 semester in August. Mafnas said SHEFA has only two options now: either terminate two programs or drastically reduce all three scholarship awards.

It was only on Jan. 11 this year when the board—for the same reason—approved an across-the-board cut on all scholarship grants for spring 2011 recipients.

SHEFA’s $3 million annual budget is divvied up among three scholarship programs: grant-in-aid, priority field of study, and incentive awards.

SHEFA administrator Henry Hofschneider earlier explained that because field of study and incentive grants cater to specialized courses, many scholars get them on top of the grant-in-aid award.

Mafnas described the planned adjustment as tough for the board but is the most “realistic” approach.

The chairman, who is also the Division of Tax and Revenue director, disclosed that only about 45 poker machines are up for renewal from this month to December.

The board chairman believes that the delay in the issuance of financial aids to students was also a result of “too many” recipients and “unrealistic” grant amounts.

The Legislature earlier estimated poker revenues to reach $3.4 million this year, an amount Mafnas believes may not happen due to poker establishments closing down and machine licenses not being renewed.

There were 1,414 poker machines in the CNMI in late 2005, contributing some $16.4 million to government coffers.