By Dave Davis
For Variety

SENATOR B.J. Cruz recently claimed that the real GovGuam deficit now exceeds $1 billion, and he’s probably right. He also claimed that the Camacho administration has increased that deficit by $137 million during the past four years, and he’s probably right about that too. He asks how the 28th legislature allowed that to happen, and it’s a good question. Senator Judi Guthertz and others in the twenty-ninth seem intent on doing something about the burgeoning financial meltdown, but as usual they can’t decide what and, more importantly, how. Assuming that B. J.’s calculations are in the financial ballpark, where does that leave us and what does it portend? When accurate and grim financial facts finally emerge, what options will exist for our spendthrift politicians? Big items contributing to the deficit are easily identified: outstanding bonds and other loans; court-ordered EITC and COLA settlements; delinquent individual and corporate income tax refunds; delinquent vendor payments; debt to the retirement fund; fraudulently withheld payroll allotments, mostly for GMH and GPSS; and much more. Payless paydays are a fact of life – GovGuam employees are routinely cheated out of just compensation through the ‘net payroll’ scam. Some of the more responsible department and agency heads (UOG comes to mind) have implemented austerity measures to offset part of the impact of budget shortfalls, but that’s a temporary measure at best. Let’s not forget the likelihood of federal receivership and the massive related expense looming on the Ordot dump issue. That wasn’t even considered in the FY ’07 budget, and it’s certainly more than a minor oversight. The tax base has been eroded through corruption and greed, as with the Paseo Stadium tax credit case. Absence of a current and accurate real estate appraisal has compromised borrowing authority, distorted the tax base and skewed private property values. Our “leaders” have provided more than ample evidence of their inability to manage our money with any degree of responsibility or restraint, and the effects are now glaringly obvious. They lack the political will to rightsize and streamline government to a level consistent with accurately projected revenues, and to take reasonable measures to increase fees and taxes. They refuse to replace or remove incompetent non-performers in high management positions at GMH, GPSS, GVB, DPW, DOC, DPR, Mental Health and Substance Abuse and others. Incompetence that reaches a level that can no longer be ignored is rewarded with reassignment to a different lucrative government position. Asking the question again – what does all this portend? It seems inevitable that at some point GovGuam will seek a federal bailout. When that happens, there are things that will inevitably come under intense federal scrutiny before any financial aid is proffered. For example — how public resources are prioritized and public funds spent; eligibility criteria and management of local and federal entitlement programs; legality and constitutionality of racially exclusive, publicly funded programs; GovGuam employment and hiring policy and practice; the GovGuam retirement program; GovGuam files and track record for collection of delinquent income, gross receipts and property taxes; the property tax structure; and more. There’s much to be done before presenting ourselves as worthy beneficiaries of federal financial aid. It’s a good thing Guam was never offered the same commonwealth options as the CNMI, or we’d no doubt have already accompanied them into economic oblivion.