U.S. Department of Education restores ‘Pay first, reimburse later’ system

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After a string of bad news from the U.S. Department of Education, Guam DOE finally has something to celebrate following a meeting with the feds Thursday morning. 

“Yes, indeed—the money is restored for us to access anything that was already approved–whether it was rejected or not–if it was in our initial late liquidation plan, it’s covered and we can draw the money,” said GDOE Superintendent Dr. Kenneth Swanson. 

Swanson confirmed that USDOE has given the green light for projects including the refurbishment of 12 school campuses, the restoration of F.B. Leon Guerrero middle school, and air conditioning upgrades.

But there’s a catch.

Guam DOE must front the cost with local funds and seek reimbursement later. 

Swanson says GDOE has already submitted claims that, once processed, could bring in $10 million to kickstart the process.

“We’ve been working with the legislature and the administration on this–to put together a pool of money that we can use as a revolving account–and when this is all done, give it back. So, if we can get a 25-30 million dollar pot to work from, we can submit payments and provide the documentation that the USDOE needs, and it takes about a week to turn that money around,” added Swanson. 

But he says building that revolving fund wouldn’t be easy, with competing needs across other critical agencies.

And as GDOE anticipates yet another budget shortfall, the question looms: What will need to be cut?

“I would expect that we are going to go rather than wait one year to consolidate more schools, we’ll probably consolidate a couple more during this school year…Knowing that the federal government is pulling out of many things–that either has to be picked up locally, or done away with–and those are hard choices to make,” said Swanson. 

Meanwhile, apprehension remains as federal directives continue to shift, and GDOE is still waiting on a $9 million reimbursement already submitted.

“There is a high level of distrust because stuff gets changed,” said Swanson. “Do I trust the people that I’m talking to? Yes. Do I trust the decisions made above their head? I’ve got plenty of evidence that tells me I shouldn’t believe it.”

As for timelines, Swanson says the target to reopen F.B. Leon Guerrero Middle School is December, with the refurbishment of 12 campuses still set for mid-November.

He adds they will do everything possible to seize this opportunity, and if everything holds, they could complete the projects now and before the end of the year.


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