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PSS presents 5 budget scenarios to BOE

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PUBLIC School System financial and budget consultant Ed Tenorio on Tuesday presented to the Board of Education five budget scenarios for fiscal year 2021, which starts on Oct. 1, 2020.

PSS requested a $40 million budget, but the governor’s office could propose $20.6 million only. For FY 2021, the projected revenue available for government appropriation amounts to $82.6 million.

Tenorio said PSS needs at least $37.8 million to keep all public schools open and to pay for  existing personnel costs and a bare minimum for operational expenses.

But if PSS ends up with $20.6 million only, Tenorio said PSS must:

  • Maintain the current personnel expenses of elementary schools — $11.9 million for 274 full-time employees; middle schools — $6.13 million for 137 FTEs; special education — $1.4 million for 70 FTEs; and $981,000 for the Office of Pupil Transportation.
  • Implement an across-the-board cut of more than 45%.
  • Require a reduction in force involving over 300 personnel.

After consulting with Education Commissioner Dr. Alfred  Ada and PSS federal programs manager Tim Thornburgh, Tenorio said they also identified $10.8 million in potential revenue, including $7 million in carry-over funds from the federal Education Stabilization Fund in FY 2020; an estimated $1.8 million reimbursement from Federal Emergency Management Agency or FEMA; an estimated $1.5 million in unencumbered balance from the FY 2020 general fund; and an estimated $500,000 in indirect cost reimbursement from FEMA completed projects.

The PSS finance team prepared different budget scenarios based on projected appropriation of $20.6 million, $25 million and $27 million with $10.8 million in additional  potential funding sources.

  • Scenario 1 — $31.46 million budget ($20.66 million projected appropriation plus $10.8 million potential funding source). PSS will be short by $6.3 million if personnel costs amount to $35.1 million based on an 80-hour work schedule, and non-personnel costs total $2.7 million.
  • Scenario 2 — $31.46 million budget. PSS will be short by $92,000 only if it continues to implement a 16-hour cut or a reduction in personnel cost by $6.2 million with non-personnel cost amounting to $2.7 million. In this scenario the total personnel cost is $28.8 million.
  • Scenario 3 — $31.46 million budget. PSS will save $3.9 million with a 16-hour cut or reduction in personnel cost and zero funding for the Group Health-Life Insurance with non-personnel cost at $2.7 million. In this scenario, the total personnel cost is $24.8 million.
  • Scenario 4 — $35.8 million budget ($25 million from the general fund plus $10.8 million potential funding source). PSS will be short by $2 million if its personnel cost remains $35.1 million based on an 80-hour work schedule, and non-personnel costs total $2.7 million.
  • Scenario 5 — $37.8 million ($27 million from the general fund  plus $10.8 million in potential funding source). PSS will have a balance budget with personnel cost at $35.1 million and non-personnel cost at $2.7 million.

“Fiscal Year 2021 will be extremely challenging, not only financially, but as a system in general,” Tenorio told the BOE.

He said continuous collaboration among the BOE, the education commissioner, school administrators, program managers and all stakeholders is “highly encouraged to mitigate the challenges and the financial impact of the Covid-19 pandemic.”

 

 

 

 

 

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