Proposed PSS budget ‘will create problems’

* $34.6M budget just enough for personnel

* School overcrowding seen to worsen

Contrary to earlier reports that the Public School System will be exempted from the budget reduction for fiscal year 2007, it now appears that at least $2.7 million will be lopped off from the PSS budget this next fiscal year.

In a letter to the Legislature on May 4, Antonio Muna, the special assistant for management and budget, stated that the budget proposal for PSS in FY 2007 is $34.57 million—$2.64 million lower than the continuing resolution level of $37.21 million that the system has been getting the past five years.

The Fitial administration has projected FY 2007 revenues to reach only $193 million.

David M. Borja, PSS associate commissioner for administrative services, said this new budget level would create problems for the education system in the CNMI.

Currently, with its $37.2 million budget, PSS has been spending at least $34.9 million just for personnel cost. PSS finance director Richard Waldo said the current budget does not even include the cost for utilities because the local government is shouldering this.

“We are very concerned,” said Borja, adding that, if this new budget is implemented, there would be a domino effect on the standard and quality of education in the CNMI.

For one, Borja said, the new budget would not be able to alleviate the problem of overcrowding in the schools in the CNMI. The result would tax PSS’ resources, he said.

The PSS will also be confronted with the problem of having fewer teachers to replace those who have retired or those who would be leaving due to failure to comply with the rigorous certification requirement that is the PRAXIS.

Press secretary Charles Reyes said yesterday that, as far as he is aware, it is only the Marianas Visitors Authority that would be exempted from the budget cut for the next fiscal year. He said this is because MVA is a revenue-generating agency.

Borja said it was not stated whether the new budget proposal for PSS includes payment for utilities. (He said the actual budget for PSS in past years is actually $40.7 million and not $37.2 because of the utilities.) He said that PSS is assuming that the central government will still shoulder the expense for utility payments.

Last year, PSS requested for at least $50 million for FY 2007. This was approved by the House of Representatives, which also appropriated $4 million for the CNMI Scholarship Office. However, the Senate approved the version of the bill that set the PSS’ funding level at only $48 million.