‘$9M receivables key to meet MOE requirements’

Commissioner of Education Dr. Rita A. Sablan said yesterday that receivables from the central government is now down to over $9 million.

This after the Public School System acknowledged the $1.7 million being paid by the government for the schools’ utility bills.

Sablan said based on PSS’ analysis, the government owes the system $11 million representing the unremitted budget allotments for fiscal years 2010 and 2011.

Pursuant to U.S. Department of Education mandate, budget for education must reflect 25 percent of the entire government budget. It was in 2009 when PSS received $32 million of the $44 million state fiscal stabilization fund awarded to the CNMI pursuant to that provision.

Sablan, who recently met with USDOE officials in Washington, D.C., admitted to Saipan Tribune that despite continued communication with the Executive Branch, PSS has yet to see a concrete initiative on the payment plan.

The commissioner said that she is also not aware if the CNMI government, being the expenditure authority of the SFSF, had filed a waiver for unmet MOE to avert repayment of the full grant.

“If there’s any kind of waiver to be filed, it should come from the Office of ARRA and the Executive Branch [not PSS]. I don’t know if they filed and I can’t answer that. But I am sure it is something that the USDOE would be willing to consider given the economic hardship,” she told Saipan Tribune, adding that she remains hopeful that both the governor and the lt. governor will help the PSS keep afloat for the schoolchildren.

Sablan disclosed that failure to receive these receivables will mean more challenges to PSS which need to provide quality learning and services to nearly 11,000 schoolchildren on islands.

The commissioner reiterated yesterday that because of budget constraints, streamlining measures will continue as directed including energy cost reduction, freeze hiring, maximizing personnel and school resources, and others.

She revealed that since the energy conservation policy was enforced, schools’ utility cost significantly went down from $290,000 in October to $189,000 in February this year.

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, education officials said the unremitted MOE will help the system pay for its personnel and utilities. PSS has over 1,000 employees of which a little over 500 are classroom teachers. Each payroll, their salaries are estimated at $1.1 million.

ARRA fund is so far the biggest investment for 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.