THE CNMI government has not been remitting the Public School System’s local budget allotments in a timely fashion, but federal funds continue to cover PSS’ budget shortfall, Education Commissioner Alfred B. Ada said.
Of the $103 million fiscal year 2022 CNMI budget under Public Law 22-8, $25 million is allotted to PSS, which is constitutionally guaranteed an annual budget of not less than 25% of the general revenues of the Commonwealth through an annual appropriation.
During the Board of Education regular meeting on Tuesday, Ada said PSS plans to use the $32 million in Education Stabilization Fund provided by the federal government, for the remaining months of the current school year.
He said PSS is receiving its share of the CNMI budget “but not in a timely fashion.”
“We are not getting it on time,” he added, referring to the $6 million quarterly allotments that the CNMI government is supposed to remit to PSS.
For the first quarter of FY 2022, for example, he said only $4 million was transferred to the PSS account, resulting in a $2 million shortfall.
PSS Finance Director Arlene Lizama, for her part, told the board: “We are dealing with our local funds on a quarterly basis. That is how we approach it. It is not ideal, but all we can do is spend [the local funds] every quarter.”
PSS Federal Programs Officer Tim Thornburgh said the school system’s share of the local budget is based on the availability of local funds, but added that he and Lizama are working together to ensure that PSS vendors and the employees are paid on time.
Ada informed the board that PSS has a total of $153 million in American Rescue Plan Act funds.
Once the $32 million in Education Stabilization Fund monies are “exhausted,” PSS will tap the ARPA funds, he said.
The ARPA funds are earmarked for the school system’s four-year budget that will end in September 2025, Ada said.
He likewise reported that right now PSS received 34 federal grants amounting to $340 million.
This year, he said, PSS allocated over $50 million to all schools for all their needs, which include activities related to addressing the Covid-19 pandemic.
He said there are also five contracts that are being processed for the purchase of furniture requested by schools in the amount of $1.3 million.
Thank you
Ada took the opportunity to express his gratitude to Associate Commissioner of Administration Eric Magofna and Accountability, Research and Evaluation Senior Director Dr. Rizalina Liwag for serving as acting commissioners while he was on medical leave.
“I know it’s not an easy task. It was an additional task on their part, but I have every faith and confidence in their leadership,” the commissioner said.
Ada said he is proud of the PSS management team and the school leadership for maintaining stability during his absence.
