By Mar-Vic Cagurangan
Variety News Staff

VICE Speaker Eddie Calvo, R-Maite, said yesterday he expects to hear about the administration’s deficit elimination and economic development plans when Gov. Felix P. Camacho delivers his state of the island address next week.
Camacho will deliver his first gubernatorial address before the 29th Legislature when it holds its first session at 10 a.m. on Feb. 19.
“As the chairman of the budget committee, I want to hear what the governor has to say about his administration’s plans to eliminate the government’s deficit and plans to develop the economy in light of the Marines transfer to Guam,” Calvo said.
Calvo recalled that administration officials promised to provide the Legislature with a fiscal recovery plan during the public hearing on Bill 15, which calls for such measure.
The governor recently submitted his fiscal year 2008 budget to the Legislature, acknowledging that the administration’s deficit has grown to more than $500 million.
Camacho said the recent addition of $30 million in earned income tax credit payments and $123 million in prior year cost of living allowance payments have exacerbated the government’s financial situation and significantly increased the administration’s deficit.  But the governor said his administration has already taken steps to convert these obligations to long-term debt.
Sen. Rory Respicio, D-Agana Heights, meanwhile, maintained that the government is facing a shortfall of $15 million based on his own revenue tracking for fiscal year 2007.