$4.5M unremitted MOE to public schools bared

The Public School System disclosed yesterday that the central government has yet to remit a significant amount from the maintenance-of-effort requirement of the state fiscal stabilization fund monies awarded to the CNMI two years ago.

PSS federal programs officer Tim Thornburgh told Saipan Tribune yesterday that approximately $4.5 million “remains owed” to date by the central government. This amount covers fiscal years 2010 and 2011.

It was two years ago when the system was awarded $32.4 million in total SFSF monies which was authorized for expenditure until Sept. 30, 2011. For the first phase of the grant, over $22 million was received by PSS, while the second phase provided PSS $10.1 million in assistance.

These funds were utilized in renovation and modernization of all schools, helped teachers to become highly qualified, improved school and after-school programs, student academic activities, and a significant portion was utilized in paying for the salary of a certain number of teachers and utility payments.

Thornburgh said he is currently working with Michael Ada of the CNMI-ARRA office to finalize the numbers and is hopeful that the central government will remit the funds within the fiscal year.

He, however, admitted that negotiation is “still ongoing” between the central government and PSS regarding the “unaudited” numbers. Thornburgh said once both books for fiscal years 2010 and 2011 are closed, final numbers will be determined.

This fiscal year 2012, PSS is only appropriated $30 million for its personnel and all others. Because all SFSF funds expired in September last year, Thornburgh said the unremitted MOE will help PSS pay for its personnel and utilities costs. PSS has over a thousand employees of which a little over 500 are classroom teachers. Each payroll, their salaries are estimated at $1.1 million. Its monthly utilities consumption is $400,000—or $4.8 million until the end of the fiscal year.

The federal programs officer revealed that compared to FY 2011, PSS is anticipating lower federal monies this fiscal year as a result of the expiration of state fiscal stabilization fund under the American Recovery Reinvestment Act of President Barrack Obama.

Thornburgh said PSS has expended a total of $57.5 million in federal grants (including SFSF) in FY 2011.

He said that in FY 2012, PSS only had a “sure” federal assistance of over $30 million which is the consolidation of all its regular grant assistance every year. Although there are other small grant awards and applications being pursued at present, he said awarding and disbursement have yet been finalized.

Thornburgh said yesterday ARRA funding is so far the biggest investment for CNMI public schools in the past 23 years.

Saipan Tribune learned that the only thing that compares to it was the general obligation bond in 1998 when PSS received $32 million which amount included the 50 percent local matching fund. In 1998, PSS built new schools.

Besides the unremitted MOE for ARRA monies, PSS officials earlier disclosed that the central government also owes the system some $7 million in “roll over” funds from previous years. The roll over funds represent non-remitted budget allotments of PSS in fiscal years 2010 and 2011. Saipan Tribune learned that in the last two fiscal years, federal funds supplemented the delayed and non-remittance of the local budget.