PSS justifies higher budget proposal

Board of Education chair Marylou S. Ada and Education Commissioner Dr. Rita A. Sablan have justified their higher budget proposal for the new fiscal year, saying the $40 million they recommended is what the Public School System needs to maintain its current operations.

In a joint letter to Gov. Benigno R. Fitial, Ada and Sablan said the increase in budget recommendation was largely due to the escalating costs due to the NMI Retirement Fund’s defined benefit employer contribution rate, increasing utility rates, and the cost of inflation.

“In light of our constitutional mandate, our focus remains on protecting the educational integrity of the classroom. This budget supports that principle. Of the total FY 2013 budget for personnel, 91 percent is allocated for school staffing including bilingual, special education, JROTC, and Head Start personnel. The schools will also receive an estimated over 90 percent of the allocated budget for operation [all others],” Ada and Sablan told the governor.

They said the $40 million proposed budget reflects an increase of nearly $4 million over the FY 2012 budget request (which was $36 million). “The increase is attributable to the upward adjustment of the Retirement Fund rate from 20 percent to 37.9 percent,” they said, adding that the rate increase will require that PSS remit to the Fund the total sum of $5.2 million in FY 2013.

According to the education officials, the proposed budget for operations expenditures also shows an increase because of the expected continued escalation costs of fuel, supplies, and other operational expenditures. The proposed allocation for all others is $2.18 million for FY 2013—an increase of $562,172 over allocated amount in the proposed budget for FY 2012.

The budget allocation for CUC also increased from FY 2012’s recommendation of only $1.3 million to $4 million for new fiscal year.

Other increases in the new budget proposal include salary adjustment for teachers which shows an increased of $245,000. PSS also forecast an increase to expenditure for Medicare, insurance, and DB plan by about $20,000.

“As the entire Commonwealth government faces another fiscal year of further belt tightening and austerity, the board and PSS are both committed to cost-cutting and savings initiatives. We have also implemented beginning in FY 2012 an aggressive energy conservation program to cut electricity usage in our schools and in our admin offices,” they said, adding that PSS expenditures are expected to remain within its authorized budget level in FY 2012 which is $30 million.