NMC President Carmen Fernandez said the sharp reduction on the islands’ reimbursements for hosting migrants from the Freely Associated States under the so-called Compact-Impact funding will have a significant impact on the college’s budget for utilities.
The CNMI stands to receive only $1.93 million in Compact-Impact funds this FY 2010 from $5.172 million in previous years.
Federal studies show the islands are hosting fewer Micronesian migrants because many of them have migrated to Guam and Hawaii where the economy is stronger compared to the CNMI.
Fernandez said this has a negative impact on NMC’s finances.
“I am writing to respectfully request an increase in “Others” in the amount of $350,000 to cover utilities. We have in the past covered this portion with Compact-Impact funds. Unfortunately, those funds are greatly reduced beginning FY2010 and it is uncertain how much funding NMC will receive,” she wrote to Rep. Ray N. Yumul, the chairman of the House Ways & Means Committee.
Fernandez said NMC’s average annual utilities amount to $800,000. For FY 2010, NMC’s original request for such was just $450,000.
“We continue our efforts to reduce utility costs, including taking advantage of any energy efficient initiatives being conducted by [the Department of Public Works] and other government departments,” she said.
But some lawmakers like Rep. Stanley T. Torres, R-Saipan, who is a member of the committee, said NMC must first explain how it spends taxpayer money before a favorable action is given.
“NMC should tell us how they spent the taxpayer money. This over $1 million under contractual services, was part of these spent for legal fees? They should tell us,” Torres.
Torres asked NMC to divulge the amount of taxpayer money it spent to settle its dispute with disgruntled employees but the college refused to turn over relevant documents saying those were exempt from the Open Government Act because of privacy issues.
According to NMC’s unaudited financial statement for FY 2007, it spent over $1 million for unspecified contractual services.
Torres said NMC should be transparent how such was spent.
Documents show NMC spends $6.9 million in salaries and benefits of its employees. This money comes from local government appropriations.
Every year, NMC, a land grant institution, also receives more than $6 million in federal grants and an additional $2.8 million in tuition and fees.
In all, NMC revenues total over $15 million every year.
The unaudited financial statement submitted to the Legislature showed that NMC spent over $14.774 million for the covered period ending in Sept. 2008.
NMC’s accreditation at the California-based Western Association of Schools and Colleges remains in danger pending its completion on numerous recommendations to institute reforms on its academic programs, facilities and financial accountability.
