NMC threatens tuition hike, scrapping of business degree
Northern Marianas College president Dr. Sharon Hart told senators yesterday afternoon that NMC might increase students’ tuition by at least 30 percent and cancel the new bachelor’s degree in business management program as early as Monday, among other things, should the Legislature fail to give the college at least $5.152 million to meet federal maintenance-of-efforts requirements.
NMC is asking for a budget of $7.858 million for fiscal year 2015.
The House of Representatives gave NMC $4.934 million in its version of the fiscal year 2015 CNMI government budget bill. The $134.33 million budget bill is now under Senate review.
Of the amount given by the House to NMC, $4.248 million is direct appropriations, while $600,000 is from CW fees and $86,000 is from Compact impact funds.
Lawmakers said the $7.858 million that NMC is asking for is almost double what it had in previous years and is unattainable at this time given other program needs.
Senate and House of Representatives members also said while they understand NMC’s frustrations, they were taken aback by the tone of NMC’s statements at yesterday’s Senate budget hearing, describing them as “threatening.”
“I’m just quite surprised that from $4.2 million, NMC is asking $7.8 million. To say things in a threatening manner is quite alarming especially because it’s asking for almost double the budget. However, I sympathize with NMC’s concerns about the need for more funds. For me we should at least meet the MOE requirements,” Manglona later said.
Senate Fiscal Affairs Committee chair Sen. Jovita Taimanao (Ind-Rota) said the committee will review NMC’s request.
Nothing was promised to NMC yesterday.
NMC officials said the minimum appropriation needed for NMC to meet the MOE requirement for the College Access Challenge Grant for 2015 is $5,152,207.
This, however, assumes that the CNMI Scholarship allotment is maintained at the same level for 2015 as in 2014.
This figure is also subject to change if there is any variation in NMC’s appropriation level as stated in Public Law 18-18 or in the CNMI’s Scholarship allotments.
Hart told senators yesterday that by not giving more funds to NMC, lawmakers “are putting all of this on the back of students.”
“And it is either time that the NMC receives the appropriations we need or I am serious, it is time that this college gets out of the business of being a college because we need these funds. And this is being serious, we need to know. If we’re not going to have these funds, I am going to say to the dean we do not enroll these students in business starting next Monday. And we will cancel that business degree. Do you want us to meet this workforce needs or do you not?” Hart asked members of the Senate Committees on Fiscal Affairs and Education.
Manglona asked Hart whether NMC also shared their plans with the House of Representatives.
“You bet,” Hart responded. “And we can see right now where education stands in the CNMI and I am extremely disappointed as every citizen in the CNMI should be disappointed in the lack of support that goes to education.”
Hart said this comes at a time when NMC expects 1,300 students or an additional 14 percent growth in enrollment this fall.
“When we tell these students in a few weeks that they will be expecting a 30-percent if not more growth in their tuition dollars, I hope that they come forward,” Hart added.
Manglona asked Hart once again whether NMC explained their plan to the governor.
Hart said Board of Regents members have been talking to the governor and the House.
“We were up here two months ago. We told the House what we’re going to do,” Hart said.
Lawmakers also asked NMC about the whereabouts of the $3 million it collected in student tuition, which is not counted toward the college’s budget.
Rep. Roman Benavente (Ind-Saipan), chairman of the House Committee on Education, said the House continues to find sources of additional funding for NMC but it is impossible to give NMC almost $4 million more.
The House and Senate are expected to form a conference committee to come up with a compromise version of the government’s 2015 spending plan.
Benavente also noted Hart’s statement about considering to cancel the new four-year degree in business management program.
“If she knew from the beginning there would be problems with funding, she shouldn’t have pushed for it this year. It’s holding the budget situation hostage. …The $3 million tuition collection is also questionable issue. I believe they use it as ‘cushion’ fund but they have to disclose that,” he added.
Besides Hart, other NMC officials were also at the Senate budget hearing including NMC chief financial officer Tracy Guerrero.
Hart also enumerated NMC’s accomplishments and successes.
“We do achieve what we set out to do,” she said.
The Senate leadership, meanwhile, is poised to give the Public School System an additional $1.6 million, on top of what the House gave it under the 2015 budget bill, to be able to meet the MOE requirement.
Exactly “If she knew from the beginning there would be problems with funding, she shouldn’t have pushed for it this year.” I am one of the students who re-applied to NMC just for this program..if they cancel it will i get my money back? i went through a lot just to get into this program not to mention the registration process which was long and stressful and for that to be a waste of my time because of the college’s poor decisions would be disappointing..NMC needs to be more prepared and organized ..
Agree, NMC has to stop messing with the students. Change of plan in the middle of the game is not fair.
You are honestly more concern about their tone than what they are saying? No wonder we have such big problems! I guess their promise to support education is less important than the tone of NMC officials. But, here is a possible solution. Allow NMC to increase its tuition by 15% and give NMC half of what it is asking. That should not be so difficult is it? COMPROMISE! And, stop holding students, PSS, College, and Trade, as hostages of your egos and lack of vision!
Increasing the tuition fee at NMC is not the solution to the budget shortfall. NMC has to cut travel expenditure and that goes to the Legislature as well. The students should not carry the burden of budget shortfall at NMC. Please have mercy on NMC students, they have enough to suffer already. They need help, not punishment.
Does this increase in their budget also include NMC’s planned salary increases for its president, management, and employees? If it does, then I do not support it because the NMC students continue to witness the waste, abuse, and inefficiencies that is often perpetrated at NMC and now the results will be the students having to pay even more, in part, because of that? Did it ever occur to Hart that students do go home and talk to their friends and family about their NMC experiences and what they witness?
At least NMC management is willing to make the tough operating decisions needed to keep expenses within its budget, even when the maintenance of effort payments are not made by CNMI. PSS, on the other hand, doesn’t make those hard decisions, and instead runs up bills (like CUC and NMIRF) that it has no intention of paying. What’s worse?
John, we appreciate that the management understands its responsibilities and duties and that they are willing or trying to do the job that they were hired to do. After all, isn’t that what they are paid (with public funds) to do? It is great to hear that NMC management is probably doing an exceptional job, (when compared to other government agencies), in prioritizing their expenses instead of wasting critical public funding on things like unnecessary travel, food, drinks, etc. Especially, since those are things that don’t really benefit the students or the public.