Federal shutdown could hit PSS

If the federal government shutdown that is currently plaguing the U.S. mainland extends beyond March 2019, that could start to affect the CNMI Public School System, according to a state education official.

PSS federal programs officer Tim Thornburg told the Board of Education Friday that, so far, PSS is financially capable of weathering the federal shutdown; however, should it last beyond March 2019, PSS is expected to take a blow.

“All of our [federal] education grants are forward-funded,” Thornburgh said in a later interview. That means money is first appropriated to the agency—as opposed to monthly payouts or other types of payment.

“Education is one of two departments in the federal government that makes money,” Thornburg explained, adding that student loans and other payments are used to forward-fund state education agencies after U.S. Congress appropriates them.

“None of our programs are in jeopardy,” BOE chair Marylou Ada stated in a separate interview. “We have until probably midway until the grant year because every grant has a different timeline, so hopefully the government will resolve whatever issues it may have, so that we will be fully functional.”

“At this point, no critical services will be affected and there is no impediment at all…at this time,” she added.

However, a contingency plan for a worst-case scenario—the federal shutdown lasting beyond March 2019—must be in place, insists BOE Tinian representative Florine Hofschneider.

“We have some carryover money from the previous fiscal year [fiscal year 2018], so I can say with absolute certainty that, in a worst-case basis, we would be able to provide school meals,” Thornburg told Hofschneider.

Hofschneider insists that each school should individually set up its own contingency plan for the worst-case scenario.

“We can’t really put all our eggs in the [it-might-not-happen] basket. …There are other things that have happened at the federal level that we never thought would happen, so just in the event that it happens, we need to have a back-up plan,” Hofschneider said.

In an interview, Ada noted that PSS has faced similar situations with past presidents.

“We have a contingency plan, we have been through this before a couple of years ago,” she said, recalling a near-shutdown during the Obama administration, and even the Bush administration.

“…We have a direct line to the U.S. Department of Education, [specifically] to our grantees, where if there is a shutdown that will affect the CNMI and our grant programs, they would call us ahead of time and advise us,” she said. She is confident that the U.S. education department will to notify them at least a week before a possible shutdown.

“We would know if any critical projects would be affected because we would be alerted right before it happens, not after. But we do have a contingency plan,” she added.

About half of PSS’ budget for fiscal year 2018 consists of federal grants and monies. PSS was appropriated $41.8 million for fiscal year 2019. They pitched an expenditure report of $55 million for their operations for the fiscal year.