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Finance secretary says decline in revenue collection means less funding for PSS

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THE central government’s funding obligation to the Public School System is 25% of the total revenue collected, and not projected, Finance Secretary David DLG Atalig said.

This means that if the government collected less than the amount it projected, the 25% due to PSS will also be less, he said in an interview on Thursday.

He said the central government still owed PSS one pay period for fiscal year 2020, which ended on Sept. 30, but was in the process of transferring over $500,000 on Friday.

 Once the transfer was made, the central government would have fully paid its obligation to PSS for FY 2020, Atalig said.

He said he is also “reviewing our total revenue collection from last fiscal year.”

Because PSS is entitled to 25% of the government’s total revenue collected, and not projected, if Finance collected more than the budget then, PSS was due more but if Finance collected less then, “they will be given less,” he said.

Atalig said he plans to meet with the Board of Education and the PSS administration this week to discuss the matter.

“We had a challenging revenue collection in the last two months of the fiscal year that might change the amount of our actual total collections,” he added.

This means that if the government collected less in FY2020, the funds transferred to PSS “are not on the budget.”

But this does not mean that PSS should return the money, he said.

“PSS will not owe the central government. As long as they have been pretty up to date with group health and life insurance, and other payments and taxes, I think it is okay,” Atalig said.

But it also means that the central government has fully paid its obligation to PSS for FY 2020, he reiterated.

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