PSS spending for students 36 percent less than fed level

Commonwealth spending for each public school student was 34.64 percent less than that spent by the federal government, according to an audit of the Public School System’s financial statements in fiscal year 2004.

The PSS single audit showed that the CNMI government spent $5,756 per child between October 2003 and September 2004. Federal spending for each child amounted to $8,807 during that year.

The audit, conducted by the J. Scott Magliari & Company auditing firm, also indicated that the total spending per child had not varied significantly from 2000 through 2004.

Federal spending climbed annually from $6,865 in FY2000 until it reached $8,807 in FY2004. Meanwhile, the CNMI’s FY2000 spending level of $5,510 dropped to $4,909 in FY2002, before rising to the FY2004 level of $5,756.

PSS enrollment, however, posted significant growth, increasing from 9,669 students in FY2000 to 11,016 in FY2004.

“What should be noted is that in spite of the increase in student population since FY2000, the CNMI spending level has remained somewhat constant per child,” according to the Office of the Public Auditor’s summary of the independent audit.

According to the FY2004 audit, PSS received $16 million in federal grants and $37 million from the CNMI government, representing an 11.65 percent increase in revenues from the CNMI government.

The audit attributed most of the increase to the 19.37-percent increase in transfers from the CNMI government, which transferred only $31 million to PSS in FY2003.

Federal grants for the same period fell by almost $1.8 million, or 9.88 percent.

Expenses in FY2004 decreased by approximately $1.3 million or 2.4 percent, due largely to about $2.2 million savings in instructional expenses.

In FY2003, PSS spent $46.3 million in instructional expenses while it only spent $44.1 million in FY2004. However, PSS experienced an increase in supporting expenses. Over $9 million in support service expenses were incurred in FY2004 compared to less than $8 million in FY2003.

Furthermore, PSS managed not to incur any long-term debts even with the opening of new schools. This occurred with the help of the Legislature, which allowed PSS to float bonds to finance school construction projects. The bonds are to be repaid by the central government through the appropriation of liquid fuel taxes.