House passes bill allowing PSS to borrow up to $5M from USDA

Sablan

The Public School System’s plan to take out a $5 million loan from the U.S. Department of Agriculture Rural Development program is now one step closer to fruition after the House of Representatives last Thursday passed House Bill 19-59.

The funding bill, which needed two-thirds affirmative votes, passed on 19 yes votes and one absence.

It authorizes PSS to enter into a loan agreement not exceeding $5 million with USDA for the purposes of building additional classrooms, Early Head Start Centers, and to pave roads and parking lots at its facilities on Rota and Tinian.

Introduced by Rep. Antonio Sablan (Ind-Saipan), H.B. 19-59 originally passed the House seeking for a $3-million loan from USDA.

The Senate, however, amended the bill and increased the debt ceiling to $5 million after PSS officials said that inflation, increase in construction and labor costs, especially in the wake of Typhoon Soudelor, and other factors could add another $2 million to the total project cost.

The bill’s findings said that PSS needs six additional Kindergarten classrooms, four Early Head Start Centers, and paved school roads and parking lots on Tinian and Rota.

“In order to continue with its mission to provide the best education and services available to the students of the Mariana Islands, the PSS is (sic) needs to continue to provide quality early education. This means both more kindergarten classrooms to keep up with a growing population and more Early Head Start Centers in order to identify needs and meet them from the earliest of ages,” reads a portion of the measure.

In addition, PSS has identified its own revenue streams to pay back the loan and will not need additional appropriations from the Legislature above its constitutional allotment to service the loan.

PSS hopes that the improving economy will increase its yearly allocations from the government and the additional funding would help them pay off the loan in five years.

Rep. Joseph Lee Pan Guerrero (R-Saipan) said he fully supports the bill as it is not only Saipan educational facilities that stand to benefit from the PSS loan but also educational facilities on Tinian and Rota. Guerrero said he has relatives on both the first and second senatorial districts and the 19th Legislature has responsibility to them to pass the bill to improve PSS’ facilities there.

H.B. 19-59 now heads to acting governor Ralph DLG Torres’ desk for approval in order to become law.