By Gerardo R. Partido
Variety News Staff

THE possibility of a power shutdown today for the Guam Public School System may just be the start of similar funding problems down the road as the Office of the Public Auditor yesterday warned that GPSS’s cash request for 2007 exceeds the money appropriated for the agency by the Legislature.
This, as GPSS Superintendent Luis Reyes met with Gov. Felix P. Camacho to thrash out the proposal made by the governor during his State of the Island Address for the Department of Administration to take over the handling of GPSS finances.
As of press time yesterday, the Consolidated Commission on Utilities was still meeting and one of the items on the agenda was GPSS’s $900,000 debt to the Guam Power Authority.
Late yesterday afternoon, CCU chairman Simon Sanchez said GPA still has to receive payment on GPPS’s debt. GPSS has been scrambling to finds funds to pay its power debt by today, which is the deadline set by GPA for GPSS to pay up.
GPSS is expected to make at least a partial payment today but according to GPA, GPSS must pay at least half of its debt amount to keep all of its power on.
According to Sanchez, if GPSS fails to pay up, GPA won’t cut off power to the schools, but would likely cut power to the GPSS administrative offices.
In the Fiscal Year 2007 GPSS cash disbursement schedule released yesterday, OPA warned that GPSS may face a funding shortfall if it continues to mismanage its finances.
Under Public Law 28-149, the Legislature appropriated a total of $184,346,466 to GPSS for FY 2007. Of the $184 million appropriated to GPSS, $172,957,804 was appropriated for GPSS operations.
However, OPA said the Legislature attached several conditions to the expenditure of these operational funds and GPSS’ FY 2007 monthly cash disbursement schedule did not factor in these amounts because of the various restrictions placed on them by the Legislature.
Of the $172,957,804 appropriated for GPSS operations, OPA said $152,379,574 or 88 percent would be required for salaries and benefits, and $14,383,230 or 8 percent would be required for power, water, and telephone costs.
According to OPA, this leaves only $6,195,000 or 4 percent of the $173 million for other operational expenses such as travel, contractual, supplies, equipment, miscellaneous, and capital outlay. This is $12,186,845 less than the $18 million indicated on the cash drawdown schedule submitted by GPSS on Oct. 12, 2006.
OPA warned that GPSS’s cash crunch is expected to worsen next month when the public school system will have three pay periods.
The government of Guam’s fiscal condition is deteriorating with a growing deficit pegged at $344 million as of Sept. 30, 2005. With mounting obligations and reduced revenues, the deficit is projected to go higher.
Thus, OPA said the administration will still be faced with the urgency of meeting the operational needs of not only GPSS, but all governmental entities.
OPA added that although DOA will continue to release funds to GPSS as cash is available regardless of estimates, it is incumbent on GPSS to manage the available cash and prioritize payroll liabilities with respect to its lump sum appropriation.