Local funds used to pay PSS settlement
The Public School System has reportedly used local funds to pay a recent settlement.
During PSS’ budget hearing before the House Standing Committee on Ways and Means last Tuesday, it was learned that a recent PSS settlement that made headlines was paid by local funds.
Although the specific settlement was not disclosed during the hearing, the most recent settlement involving PSS that made headlines was the settlement between PSS and Dr. Bobby Cruz, co-director of PSS’ Mental Health Program.
Rep. Marissa Flores (Ind-Saipan) opened the discussion regarding the settlement and settlement payments during her line of questioning.
“There was a lawsuit that was adjudicated, how is that lawsuit being paid? One that was just settled for an undisclosed amount, how is that being paid? That made the newspaper,” she asked.
Despite PSS’ reluctance to answer, it was learned that local funds were used to pay the settlement.
“It would have to be local funds,” said PSS’ team.
In her follow up, Flores brought up that PSS does not have discretion to use local funds for settlements but her statement left PSS’ administration speechless.
“But in none of the local funds does it say that [PSS] has discretion to use them for any lawsuits,” she said.
Aside from the settlement with Cruz, Saipan Tribune learned that PSS is currently involved in two ongoing lawsuits; one regarding a fight that happened on school property, and an appeal of a procurement matter involving photo copy services.
According to Saipan Tribune archives, back in February, PSS and Dr. Bobby Cruz, agreed to settle the grievances that Cruz had filed where he alleged sexual harassment and rights violation.
Cruz’s attorney, Charity Hodson, and the PSS administration sent out a joint statement reporting that a settlement has been reached between the parties.
“Dr. Cruz’s grievance has been settled. We acknowledge the diligence and courage demonstrated by Dr. Cruz throughout the process and his decision to opt for an effective alternative to the grievance resolution,” said the statement.
The parties, without going into detail, state that the resolution addresses both parties’ concerns. The terms of the settlement were not disclosed
“This resolution was of paramount importance, as it manifested the collective intention of the Public School System and the aggrieved party, Dr. Bobby Cruz, an employee of PSS, to address the underlying issues pertaining to the PSS’ grievance procedures concerning commissioners of Education. The PSS respects every right of its employees,” said the statement.
PSS, in its statement, said it is committed to fostering an environment that protects the well-being of its students, staff, and personnel.
“As we move forward, PSS remains committed to fostering an environment that protects, promotes, and safeguards the well-being of students, staff, and personnel. We acknowledge the diligence and courage demonstrated by Dr. Cruz throughout the process and his decision to opt for an effective alternative to the grievance resolution. Together, we pledge to create an environment that reflects our dedication to putting ‘Students First’ while fostering a culture within the workplace aimed to uphold our values for high standards of professionalism and respect,” said the statement.
The settlement came three weeks after Cruz’s defense team sent out a written motion to the Board of Education and administrative hearing officer Catherine J. Cachero in his ongoing sexual harassment complaint against former Education commissioner Dr. Afred B. Ada.
The motion demanded Cachero’s disqualification and for the BOE to issue a finding that he has exhausted all administrative relief. That would’ve essentially allowed Cruz to bring his complaint to court.
Cruz filed grievance against Ada back in November 2022 accusing the commissioner of sexual harassment and other unprofessional conduct, including a reduction in salary.

Marissa Renee Flores
Last Tuesday, the Public School System appeared before the House Standing Committee on Ways and Means to discuss its fiscal year 2025 budget of over $39 million.
-KIMBERLY B. ESMORES