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PSS: Central govt still owes $4.7M
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Posted on Feb 03 2021
The CNMI government still owes the Public School System $$4.7 million for fiscal year 2021, which started last October, according to PSS finance director Arlene Lizama.
In her report to the Board of Education at its meeting last Thursday, Lizama disclosed that the administration was supposed to transfer $8 million to PSS by Jan. 27, based on the fiscal year 2021 budget or Public Law 21-35, but failed to do so and the Department of Finance only managed to transfer just $3.25 million by Jan. 15. This means the central government is short by $4.75 million.
PSS was approved for $24.3 million for fiscal year 2021, yet Finance had transferred only $500,000 of the PSS local budget last Dec. 31, 2020, Lizama said. She added that only 11.6%, or $1,017,894, of the $3.25 million that was transferred last Jan. 15 has been expended. Those encumbrances included $653,000 for the Micronesia Renewable Energy project, she added.
Lizama’s slide presentation indicated that the central government failed to transfer the entire amount that is due to PSS every month.
Also speaking at the board meeting, BOE vice chair Herman Atalig said that the last time he heard from Finance Secretary David Atalig, he was told that the transfer of funds is based on the government’s revenue collection weekly/biweekly and that Atalig had assured that PSS would get a 25% share of any amount the government collects in any particular week.
BOE chair Andrew L. Orsini said they will work with the Legislature on this issue. “I think it is best that we also address this funding issue with the Legislature, and see how we can work something out. The sooner, the better. Maybe there are other means the Legislature can look into to help us with the situation we are facing right now,” he said.
