Consultant urges ‘flexibility’ for PSS on budget

With the limited budget proposed for public schools, “flexibility” is one important consideration that would keep public education afloat in the Commonwealth, according to a financial consultant of the Public School System.

In a presentation to Education Board members, Ed Tenorio detailed the budget figures from both the continuing resolution and the proposed new appropriation for PSS and emphasized the need to authorize the system to move around funds to sustain the schools’ operations.

Under the continuing budget resolution, PSS’ funding level is at $33.2 million. This represents a 5.5-percent reduction of $1.9 million from the beginning fiscal year funding level of $35.085 million.

The reduction was triggered by the governor’s communication to the Legislature reducing the available general fund resources by 5.5 percent, or $8.6 million—reflecting a decrease from $156.7 million to $148 million.

A breakdown of PSS’ budget based on this continuing appropriation allots $30.9 million for personnel; $2.1 million for “all others”; and an additional $112,067 as its share in the Washington Representative Office’s budget that was redistributed by the Legislature as a result of eliminating the office.

Tenorio, in collaboration with the system’s finance and budget office, has reviewed the current expenditure trend and made projections through the end of current fiscal year: anticipated personnel cost is $29 million; estimated “all others” is $1.8 million; and utilities is $3.4 million.

Though PSS faces a $1.1 million shortfall—$33.2 million budget under the 5.5 percent reduction versus $34.2 million in projected expenditures—the transfer of $2 million Compact impact funds to PSS will bring a surplus of $986,523.

However, Tenorio noted that this calculation was based on a “very conservative, very tight” formula that will stop PSS from hiring additional teachers and anticipates “serious” concerns on its operation.

“This is almost the actual figures…” he told the board, expressing hope the administration will make good on its promise to give Compact impact funds to schools.

Based on House Bill 16-213—the Appropriation Act for FY 2009—PSS funding level is $34.6 million. The Legislature has embedded into PSS’ budget the anticipated transfer of $2 million from Compact Impact funds.

Also, PSS is exempted from remitting to the Office of Public Auditor 1 percent of its total appropriation; the savings will be used to buy schoolbooks.

The following is a summary of estimated total expenditures based on expenditure trend and projected expenses through end of FY 2009: anticipated personnel cost is $29 million; estimated “all others” is $1.8 million; and estimated utilities is $3.4 million.

PSS, based on this budget proposal, is anticipating a total net of $307,015.

However, PSS’ outstanding debt of $1.1 million to the Commonwealth Utilities Corp. remains “unbudgeted.”

“I asked the Legislature to let PSS move the money around because it’s the key to the operation,” Tenorio told the board, adding that the Planning and Budgeting Act also allows “exemptions” that may be provided public schools.