By Gerardo R. Partido
Variety News Staff

THE deficit facing the Guam Public School System can be attributed to the bigger payroll that GPSS has at present, the Office of the Public Auditor concluded in its latest report released yesterday.
According to OPA, employee count trends in fiscal year 2007 show steady increases per pay period since September 2006, the end of FY 2006.
As of February 2007, OPA said 120 additional employees had been added to the GPSS payroll since September 2006, from 2,999 to 3,119.
Labor costs for the pay period ending Feb. 17, 2007 like-wise increased by $120,991, or 2 percent, compared to labor costs for the pay period ending Oct. 14, 2006, the first payroll in FY 2007.
The actual payroll data provided as of February 2007 shows GPSS salaries and benefits are generally consistent with the cash drawdown schedule that OPA provided to the GPSS superintendent and the Department of Administration.
However, OPA pointed out that the public school system is faced with a $42.1 million deficit and $53.4 million in liabilities as of FY 2005.
Had GPSS not incurred additional personnel costs, OPA said more money could have been used to pay down the deficit, as well as meet current operational needs.
OPA said the public school system deficit is the cumulative effect of expenditures exceeding revenues.
From FY 2002 through FY 2005, GPSS overspent budgeted expenditures by $23.2 million, but also received $19.6 million less than budgeted revenues.
OPA said public school system expenditures for personnel and utilities exceeded budgeted amounts by $6.6 million and $16 million, respectively.
Comparisons of actual labor costs from Sept. 20, 2003 and Feb. 17, 2007 indicate that GPSS has increased its labor costs by $1.2 million, or 26 percent. Part of this increase has been attributed by OPA to the following:
* The increase in government retirement contribution rates from 18 percent in FY 2003 to 22.94 percent in FY 2007;
* The reinstatement of salary increments by Public Law 27-106 in FY 2005;
* The pay adjustments granted to teachers, principals, and administrators in FY 2007; and
* The increase in the number of locally funded employees by 204, or 7 percent, from 2,915 as of the pay period ending Sept. 20, 2003, to 3,119 employees as of the pay period ending Feb. 17, 2007.