BOE approves $38M budget for FY2010

Understanding the current state of government coffers, the Board of Education submitted a budget request of only $38 million for fiscal year 2010. The amount covers personnel and operations costs of all schools in the CNMI.

The funding is slightly higher than what PSS received in 1999, which amounted to $37.2 million.

In a presentation Thursday, Education Commissioner Dr. Rita A. Sablan disclosed that $31 million of the proposed budget is for personnel’s salary, $3.4 million is for utilities, and $2.3 million is for “all others.”

PSS officials explained that of the $31 million personnel cost, some $1.5 million will be earmarked for vacant positions that PSS intends to fill.

From the $2.3 million “all others” account, the following will be paid:

– $120,000 for building rental;

– $150,000 for bus maintenance and repairs;

– $300,000 for bus fuel;

– $100,000 E-rate program local matching fund; and

– $200,000 for the schools’ security.

Saipan Tribune learned that PSS originally planned to recommend a $52 million budget for next fiscal year, with about $19 million to be used for non-personnel expenses. Of the non-personnel cost, $12 million was supposed to be allotted for school improvements.

The education commissioner said that after careful assessment and consultation with the PSS management team, the decision was made to approve for submission to the board the $38 million appropriation.

The plan, however, is to propose a separate funding for school improvements and renovations, which the commissioner thinks could be funded by Capital Improvement Project monies.

The PSS presentation disclosed that in the past three years, the PSS budget translates to only 22 percent of the general fund.

During the presentation, PSS financial consultant Ed Tenorio disclosed that PSS incurred $3.4 million in utility costs as of January 2009. He cited utility costs as among the biggest challenges for the system next fiscal year.

PSS began paying for its power consumption only in Fiscal Year 2007. This cost was previously shouldered was by the central government.

In that same fiscal year, the Public School System was given $37.2 million that went down to a mere $35 million, including utilities.

PSS and CUC have been at odds over the former’s arrears, which amounted to $1.2 million in December 2008.

With the across-the-board budget cut of 5 percent, PSS is now operating at $33 million.

In looking for areas that may generate savings for the system, board member Galvin Deleon Guerrero pointed out that since students population slightly decreased this school year, he recommended that savings in that area may be considered.

While vice chair Herman T. Guerrero acknowledged the smaller population, he maintained that schools cannot just enforce a class-size reduction as mandated by the U.S. Department of Education.

Board member Tanya King also raised a concern regarding professional development funds being proposed for the board’s travel within the CNMI.

She said board members are allocated their own per diem money during the duration of their terms.