Accurate MOE calculation pending between NMI, USDOE

The issue over the accurate formula for maintenance of effort requirement remains unresolved between the CNMI and the U.S. Department of Education, almost a year after the Commonwealth was required to submit a new waiver application to the federal agency.

It was early 2012 when the CNMI government filed a waiver application for MOE. Its early submission was found lacking sufficiency and was inconsistent with the federal standards. USDOE then requested more data from the CNMI.

Press secretary Angel A. Demapan confirmed with Saipan Tribune the status of the MOE issue with the federal agency.

“The administration has not received a decision from USDOE at this time,” he told Saipan Tribune.

Without a clear decision from the USDOE, Education Commissioner Dr. Rita A. Sablan said that the central government is still obligated to pay PSS $7 million—representing unremitted maintenance of effort for fiscal years 2010 and 2011.

It was in 2009 when USDOE awarded the CNMI $44 million under the state fiscal stabilization fund. Of this amount, the bulk of $32.4 million was given to PSS. Under this federal award, there is a condition set that education system must receive a specific amount of the overall budget of the CNMI government, which was then equivalent to 40 cents to $1 dollar. This calculation was later changed by USDOE and used instead the percentage point, which is 25 percent of the overall government budget.

“We haven’t heard back from the government (on the MOE issue). I know that they’re working on it and we hope to hear something definitive … but as of today, we haven’t been provided any update,” the commissioner admitted to Saipan Tribune, adding that she’s confident that PSS will immediately be notified by the administration when decision is made by the USDOE.

When asked what this means to PSS, Sablan said that the administration (based on PSS’ books) still owe the school system the $7 million it failed to remit for FYs 2010 and 2011. This figure may change, depending on the determination of USDOE.

The original amount was $11 million but in the later part of school year 2010-2011, the central government had remitted some $2.6 million to pay for the personnel salary in 3 ½ pay periods. It was earlier disclosed that the CNMI, due to non-adherence to MOE, is faced with serious trouble if USDOE made its final decision on MOE issue.

Saipan Tribune learned that the CNMI government, pursuant to the USDOE request, made two submissions to the federal agency: 1.) the government calculation of MOE using the old formula; 2.) calculation of MOE using the new methodology used by the CNMI.