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PSS projects payroll deficit
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Posted on May 13 1999
The Public School System is projecting a “manageable” payroll deficit of $200,000 until the end of the fiscal year, counting the payday requirement of some 850 employees as of last week.
Based on the personnel budget projection, PSS is scheduled to have 11 paydays after May 8 and will need $14.8 million to cover salaries alone.
According to fiscal and budget officer William Matson, from the $34.4 million revised allotment for personnel, PSS has already consumed $19.8 million for payroll.
The last quarter allotment will only leave PSS with $14.6 million to carry the payroll requirement until the end of this fiscal year, reflecting a $200,000 shortfall.
“But this is a manageable deficit in personnel (cost),” he told PSS officials and some members of the Board of Education.
Last December PSS was all set to implement the 10 percent pay cut to bring down the $4.4 million payroll deficit to a manageable level. Gov. Pedro P. Tenorio, however, authorized $1.7 million in additional funding for PSS to keep the presence of teachers in the classroom.
In addition, PSS was able to stay afloat with its daily operations considering that it 250 vacancies unfilled since last year to reduce payroll expenditures.
Matson said earlier discussions with members of the Legislature and even with the BOE have indicated that PSS can use its operational money to pay for the salaries.
“What we are looking at is either we use the “All others funding” or the operations money for personnel. We can squeak through this fiscal year,” he said.
The PSS budget was designed to keep on board some 1,000 personnel but its operations since last year only has maintained 850 people. Likewise, some non-certified employees were not renewed after their contracts expired last week.
