DOE looks to Calvo for financial relief

by Krystal Paco

Guam - It's a harsh reality, but GovGuam's largest agency may not make payroll come mid-July. The Department of Education is looking to Governor Eddie Calvo for some much-needed financial relief.

The island's chief executive may have implemented a 15% reserve throughout the Government of Guam earlier this fiscal year, but may need to make an exception for DOE. In 2010 the Education Financial Supervisory Commission was established for the sole purpose of assisting DOE and the Guam Education Board with monitoring and managing financial resources.  At Wednesday's monthly meeting, the Commission's projections yielded that DOE will begin to feel the effects of the 15% reserve come mid-July. 15% equates to $30 million (or five pay periods).

Chris Budasi with the Office of Finance and Budget said, "For the month of May, payroll's coming in at $112 million; operations at $15 million for a total of a little less than $130 million. [We're] projecting a payroll shortfall at $21.6 million and an operations surplus of $3.5 million."

At May's EFSC meeting, Public Auditor Doris Flores Brooks suggested that DOE request a partial release of the reserve and that the agency could make do with a 10% release. Interim superintendent Taling Taitano tells KUAM News that a request for a partial release has been drafted and will be sent to BBMR this week.

Governor's director of communications Troy Torres says this isn't a welcomed request, as DOE has been the only agency incapable of cutting costs. Torres says he's seen the numbers - of the $215 million DOE budget, only $175 million makes it to the classroom. "We tend to wonder what are the priorities of the Department of Education, as this 15% reserve becomes an issue hopefully the department has done its part to cut costs or finally have a plan to cut costs and prioritize its resources towards the classroom where those resources belong," he said.

Despite the governor's disappointment in DOE, Torres says he's confident a partial release will be granted. But topping all of the governor's frustrations with DOE is their inability to obligate $60 million in ARRA funding for capital improvement projects by the end of September.  Taitano says although projects are well underway these summer months, DOE is requesting this second extension after consultation with USDOE.

She said, "We continue to suggest that the governor ask for an extension we think it would be prudent to leave some money for contingencies. You know, you never know until they start work if there could be further problems. Our concern is that if we tie up all the money, if they find additional problems we're going to have to reduce the scope to cover the contract."

Despite his disappointments in the agency for failure to cut costs and obligate funds, Torres assures doe that the governor will consider the extension request.