Vol. 35 No.23
       ©2007 Marianas Variety
Tuesday, April 17, 2007 www.mvariety.com
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Revenue enhancement plan submitted

By Mar-Vic Cagurangan
Variety News Staff

THE administration finally submitted to the Legislature yesterday its revenue enhancement proposal involving service fee adjustments expected to bring $4.5 million into the government’s treasury for the remaining six months of the current fiscal year.
“If the proposed fee schedules are approved, they will generate $9 million in additional revenues annually,” special assistant to the governor, John Dela Rosa, said.
“These fee adjustments are designed to recover the cost of providing the different agencies’ services. Fees have not been adjusted for many years,” he added.
The new fee schedules were originally contained in a bill proposed by the administration to the 28th Legislature. The bill was never publicly heard.
The proposed fee increases would apply to business and banking licenses, driver’s license, as well as the special services provided by the Guam Police Department, the Guam Fire Department, and the Department of Land Management, among other agencies.
One of the major provisions of the governor’s 2007 revised budget was to increase the gross receipt tax from 4 to 5 percent, a proposal that was junked by the senators outright.
The Legislature began wrapping up the budget discussion on its fifth week yesterday, debating the miscellaneous provisions that include the requirement for all autonomous agencies to shoulder the remittance of cost of living allowance payments for their retirees, and the creation of a Structural Stabilization Fund aimed at upgrading the government of Guam’s credit worthiness.
As of press time yesterday, senators had yet to touch the provision on the administration’s request to authorize the governor to borrow $30 million.
Dela Rosa said the requested line of credit for the governor was a major component of the administration’s strategy to address the governor’s cash shortfalls.
More amendments to Bill 74 and “amendments to the amendments” were introduced on the floor yesterday.
One of the amendments that entailed a debate was Sen. Frank Ishizaki’s proposal to establish a fee schedule for the use of community centers, gymnasiums and other recreational facilities. The fees that were supposed to be collected from this item would be earmarked for the operations of the mayors’ offices.
Minority Leader Judi Won Pat, D-Malojloj, offering an amendment to Ishizaki’s proposal, sought to exempt students from the fee payments. Her proposed amendment was followed by Sen. Tina Muna Barnes’ proposal to also grant exemption to senior citizens.
At this point, Sen. Tony Unpingco, R-Santa Rita, stood up to oppose the proposed exemptions, saying there’s no point in trying to establish fees if no one will be paying.
“We’re here to raise revenues. If we keep making exemptions, we would end up exempting everybody in the entire island and not collecting anything at all,” he said.
Sen. Ray Tenorio, R-Yigo, agreed. “The community centers and recreational facilities are being used by youths and senior citizens. So if they are going to be exempted, who’s going to pay the fee?” he asked.
The ensuing debate prompted Ishizaki, R-Yona, to withdraw his proposed amendment.