PSS: Tight budget needs careful planning

The newly signed budget law for fiscal year 2012 leaves little wiggle room for the Public School System, requiring careful planning in how it will use up its $30 million budget for the entire year, according to PSS finance chief Richard Waldo yesterday.

He told Saipan Tribune that almost the entire amount will be used to pay for the salaries of 900 employees in 19 public schools and central administrative offices.

There are 1,157 employees under the system’s payroll, of which less than 300 are paid under federal programs. PSS pays about $1.2 million for personnel wages each payroll.

Although PSS does not expect an increase in its workforce, Waldo said that payroll costs may go up due to the adjustments that have to be made on the salaries of highly qualified teachers and personnel. Beginning this school year, PSS only employs highly qualified personnel pursuant to the mandates of the No Child Left Behind Act.

Non-highly qualified classroom teachers, for example, usually get a $28,000 annual salary but this would have to be adjusted to up to $47,000 per annum once a teacher meets the HQT requirements.

Because of PSS’ tight budget, Waldo said that paying for all other expenses and utilities would be “extremely difficult.” Federal funds, he added, are the only ones that could save PSS in these areas. That’s where he sees the Individual Assistance Plan of the federal government to come in.

“Schools have their IAP money that they can use for almost anything. So we’re counting on this federal money to assist them in their operation,” he said.

Authorized parents-teacher-school-association fundraisers are also expeacted to aid individual schools with their needs such toiletries and office supplies, he said.

For utilities, PSS spends an average of $3 million a year for all schools. With the installation of brand new air-conditioning units in all public schools, Waldo projects the utility consumption to go down by 20 percent.

Waldo revealed that PSS and the Executive Branch are ironing out a memorandum of agreement so that the central government will pay for the schools’ power consumption this year. Once the MOA is finalized by both parties, Waldo said that PSS will no longer have to worry about its mounting utility bills.