PSS funding gets another look

The amount of how much the Public School System would get as its share of the annual budget could come down to how “general fund revenue” is defined.

According to the CNMI Constitution, PSS is entitled to 25 percent of the general revenues of the Commonwealth.

However, it does not specify whether that 25 percent would be taken from the general revenues after the payments of earmarks and outstanding CNMI debts.

Lawmakers are currently in a quandary over that, with discussions centered on the definition of “general revenue” in relation to the public education system in the CNMI.

The minority leader, Rep. Edmund Villagomez (Ind-Saipan), believes that PSS should receive 25 percent of the annual Commonwealth general revenues prior to the deduction of earmarks or any sums are set aside.

To put that into perspective, PSS will receive over $34 million in fiscal year 2017. The total identified budgetary resource, according to House Concurrent Resolution 19-03, is over $212.6 million as of June 30, 2016, in which over $75.6 million of this amount is already earmarked or set aside for debt service.

In the calculations of the PSS budget, the $75.6 million was not included, significantly decreasing the amount owed to PSS according to the CNMI Constitution since the latter did not specify whether or not earmarks are included in the 25 percent PSS entitlement.

For fiscal year 2018, PSS will receive over $36.3 million. This amount satisfies the 25 percent PSS entitlement outlined in the Constitution; however, earmarks and sums set aside from the budget were left out of calculations.

The CNMI government identified budgetary resources amounting to $236.7 million for fiscal year 2018, but the amount that’s available for appropriation is only $145.2 million.

If the 25 percent of the PSS budget is derived from the untouched CNMI budgetary resources, PSS is owed roughly $59.2 million.

Villagomez’s bill, House Bill 20-21, makes sure that PSS funding would be derived from untouched budgetary resources, or the CNMI budget prior to earmarks.

Due to its major impact on both the CNMI budget and PSS, Rep. Ivan A. Blanco, (R-Saipan), who chairs the House Judicial and Governmental Operations Committee, voted to have the committee review Villagomez’s bill.

Rep. Edwin Aldan, (R-Tinian) who chairs the House Committee on Education, voted against having the JGO review the bill and recommended that the JGO just adopt the bill.