By Moneth G. Deposa
Variety News Staff

THE Public School System may not be able to pay its utility bills in this new fiscal year, will have to suspend the pay increase for its highly qualified teachers, and may not be able to renew or retain some of its staff.
Education Commissioner David Borja yesterday disclosed that PSS was informed by the administration that without a new budget for FY 2008 the school system can only spend $35.8 million.
PSS requested a $43 million budget but the governor could only propose $38.4 million. His FY 2008 budget measure, however, remains pending in the Legislature.
FY 2008 started on Oct. 1 and ends on Sept. 30, 2008.
“We’re now being asked to maintain a budget of only about $35.8 million which is a lot less than what we anticipated,” Borja told Variety.
This means, he said, that PSS might not be able “to renew or retain” some of its staff toward the end of FY 2008.
“We have 1,195 employees of whom 522 are classroom teachers,” he said. “If we are not able to renew their contracts or retain them…we will be dealing with a lot more challenges this school year all the way through the beginning of the next school year.”
He added, “Another impact on the system is that we may not able to pay our utility bills.”
PSS projected $4 million in annual utility bills based on the current Commonwealth Utilities Corp. rate.
“We need to live within our means and that’s our concern right now,” Borja said.
PSS is now suspending the processing of pay hikes due to limited funding, he said.
The Board of Education earlier approved a pay hike for PSS teachers who passed the Praxis tests and obtained the required degree and teaching certifications.
“When the board revised the salary schedule for classroom teachers who passed Praxis 1 and 2, it established a reclassification compensation schedule,” Borja said. “But right now, we are only processing the increase when a teacher passes Praxis and we’re not processing one when a teacher completes a higher degree for any reclassification.”
He said PSS may end up with fewer teachers this school year.