Bus service to St. Croix schools was scheduled to resume Wednesday after the buses were kept in the garage for two days in a dispute with the Department of Education over the payment of a bill.
Abramson Enterprises Inc., which provides the bus service, suspended the service Monday, saying it was owed more than $600,000 by the Department of Education.
According to a news release Tuesday from the department, the schools’ 2011-2012 contract with Abramson was for almost $4 million, and had been paid through January. The release said subsequent payments had been made and officials were seeking the funds for the balance of $627,761 owed to the company before service was temporarily suspended early Monday morning.
Department officials Tuesday pulled together funds to cover the outstanding payments for February and March, which will allow the buses to run again on Wednesday, according to Abramson officials. While the payments have been made, officials made it clear Tuesday that this is just a short term fix to a problem that will resurface if a consistent revenue source is not found.
Checks delivered to the company Tuesday were covered by funds pulled from other essential areas – such as janitorial and security guard services – that the department may now not be able to maintain. The department will continue to work with the Office of Management and Budget to address the shortfall and to pay future transportation bills, which officials said cannot be covered by the department’s already strained General Fund budget.
“Our resources will continue to be affected if we are not able to get this situation under control,” Education Commissioner Dr. LaVerne Terry said Tuesday. “We will continue to work with the Office of Management and Budget to address the funding we need to ensure that the bills for upcoming months will be paid.”
The department will evaluate each area of its budget to determine where further costs can be cut, the release said.
The department also responded to criticism voiced Monday by Sen. Janette Millin-Young, chairwoman of the Senate Committee on Education, Youth and Culture, who said the Legislature would have found the money despite the government’s ongoing fiscal crisis.
The department noted that its officials have expressed concern, both in public and at the Legislature, about reductions to the department’s budget and the impact that it would have on mandatory services, including pupil transportation.
“It was also made clear at the hearing referenced by Sen. Millin-Young that the department had received a second cut to its budget ceiling and needed to assess the impact, which was why we revised our initial request for an appropriation transfer,” according to the Tuesday release. “Because of the ceiling cut, we could not sustain the transfer for bus service, which was explained. In order to help us better handle the budget situation, we also requested a lump sum budget, which was not supported.
