Too much funding for PSS?

Some lawmakers are currently not convinced that the Public School System should get its entire proposed funding of $50 million, noting that it is getting substantial federal grants every year.

Plus, PSS is set to receive a total of $20 million in Compact Impact funds over four years or $5.1 million every year beginning this year—as promised by Gov. Juan N. Babauta.

During a joint panel budget hearing Tuesday, Sen. Joseph Mendiola, chair of the Senate Committee on Fiscal Affairs, noted that PSS stands to get the yearly $5.1 million Compact money.

“So are you going to include that $5 million in the $50 million?” Mendiola asked budget and finance officials during the hearing.

Administration officials said that Compact Impact money is different from the local appropriation.

Robert Schwalbach, governor senior policy adviser, said that Compact funds cannot be used for PSS operations but only for classroom/building repair and maintenance.

Rep. Justo Quitugua, chair of the House Education Committee, said that under its proposed budget, PSS wants to get $4 million for repair and maintenance.

“Since the governor is going to give them [PSS] the entire Compact Impact money for repairs and maintenance, we want to ask if they still need the $4 million,” said Quitugua.

House majority floor leader Rep. Oscar M. Babauta also said that PSS gets substantial federal grants. He said that PSS currently receives $37.2 million from the local government per fiscal year and some $26 million from the federal government.

He said that PSS also has $7.2 million in “roll over” federal funds that can be spent.

“These are the issues that we need to clarify with agencies like PSS,” said Babauta.

For his part, Schwalbach said the Legislature has the prerogative on fund allocation. “If you see there’s too much money in education, you can act accordingly,” he said.

Babauta said he is concerned about other agencies that also need urgent financial aid. “We don’t want to shortchange other agencies,” said the lawmaker.

On federal funds use, Babauta said that there may be a possibility that PSS can use federal funds for operations in response to an earlier argument by PSS that federal funds could not be touched for local operations.

“To some extent, it could be used for operations costs. They have to write to the grantor to do that. I am sure that all the needs of PSS—transportation, repair of facilities, etc.—can be justified. I know that the grantor is cognizant of these needs,” said Babauta.

Babauta and Quitugua supported the call of the administration to conduct the budget deliberation openly.

Earlier, Mendiola and House Ways and Means Committee chair Norman S. Palacios said they favor the holding of public hearings to discuss the FY 2006 budget.

The administration proposes $226-million spending plan for the next fiscal year. It said that $206 million could be generated from existing resources, while some $19 million would have to be raised by redirecting funds from the Tobacco Settlement Fund and Tobacco Control Fund, and an increase in the poker licensure fees.

The administration proposes to increase the poke licensure fee by $6,000 per machine. The proposed increases would be used mainly for PSS, Department of Public Health, and Department of Public Safety.

Present in the first public hearing were Budget and Management director Ed Tenorio, Finance deputy secretary Bob Schrack, Tax and Revenue director Esther Ada, and Schwalbach, among others.