$15M supplemental budget for PSS expected in Dec.

The CNMI Board of Education expects the release of a $15-million supplemental budget or 25 percent of the reported casino business gross revenue tax amounting to $60 million in December.

According to the CNMI Constitution, the Public School System is entitled to 25 percent of the general revenue of the Commonwealth.

In his report at a PSS board meeting yesterday, financial consultant Ed Tenorio said the Legislature should be hearing from Gov. Ralph Deleon Guerrero about PSS within two weeks.

“We met with the chairmen of the [House] Education and Ways & Means committees to get an update on the status of the appropriation. They are saying that the governor is putting together plans to dispose the remaining funds from the casino. So hopefully there is going to be movement in the coming weeks and we are looking at getting this appropriation in December,” he said.

Citing the source of funds for PSS for fiscal year 2018, Tenorio said the appropriation from the general fund is based on Public Law 20-11.

“We have $36.3 million coming from the general fund, $221,603 from the Compact Impact, $327,535 from the Tobacco Settlement money, $188,507 under Board of Education, $69,435 from Appropriation Act given to co-op ed, and then the last one is the supplemental budget appropriation of $15 million, which we are waiting.”

“We have the appropriation of $36 million. The $15 million due us is coming pretty soon, giving us a total funding of $51 million, exclusive of federal resources,” he added.

Tenorio said the $15-million supplemental budget will go to Group Health and Life Insurance program for 2017 and 2018, operational costs for schools and the PSS central office, required federal matching funds, utilities, textbooks, school bus and fuel, settlement agreement with retirement, school repairs for Saipan, Tinian, and Rota, USDA annual loan repayment, and building insurance required by Federal Emergency Management Agency.

“We also have to refer to the court’s mandate,” BOE member Herman T. Guerrero said, “where the governor is required to submit a detailed breakdown of the casino BGRT. To date the governor hasn’t complied yet.

“I think the court is requesting for a detailed breakdown of the casino BGRT since its inception. PSS is entitled to 25 percent of the total of that. We are only assuming that it is $15 million but that could be a little bit more. I just want to make sure that the PSS doesn’t get shortchanged.”

“We are very much interested because it will determine exactly how much we are going to get. That’s why what I am echoing to Ed [Tenorio] to make sure that we don’t get locked in with $15 million. At least we have a figure but it could be more and we want to see because if we are entitled to more, then PSS should get it,” he added.

Guerrero said: “We know that the governor he has been using a sort of ‘hot spots’ like land compensation, salary increase, etc. so he is doing something but excluding PSS.”

“For me, earmarking by the constitution takes precedence over a legislative or even a judicial mandate because the Constitution is the law of the land,” he added.

Tenorio said that they will make sure that the 25 percent allotted to PSS is in fact in the appropriation of the casino BGRT.

“Otherwise, we will resort to other ways to acquire it,” he added.