By Mar-Vic Cagurangan
Variety News Staff

ADMINISTRATION officials maintain that the government of Guam’s financial condition is not so bad, saying that public expenditures have dropped by $12 million.
But senators are not convinced. They are filing different proposals and taking various actions to force the administration to present “the true state of fiscal affairs” of GovGuam.
Democratic senators, convinced that the administration has overestimated its revenue projection, have introduced a bill demanding a revision of the fiscal year 2007 budget to reflect the amount of money that the government can actually raise.
Vice Speaker Eddie Calvo, R-Maite, introduced a separate bill that would require the administration to submit a monthly revenue tracking report and to institute a fiscal recovery plan, if needed.
Sen. Rory Respicio, D-Agana Heights, yesterday asked Public Auditor Doris Brooks to conduct an independent analysis of GovGuam’s general fund balance sheet “in order to determine our true state of fiscal affairs.”
During the 28th Legislature’s lame duck session, then Democratic Sen. Benjamin Cruz made a last-ditch attempt to convince the Republicans to revisit the government’s budget and address a revenue crisis, which he said has raised the public deficit to $481 million.
The 28th Legislature ended its session without taking up Cruz’s appeal, prompting the incumbent Democrats to revive the issue in the 29th Legislature.
“The Legislature’s unwillingness to revisit the budget for fiscal year 2007 is extremely disconcerting,” Respicio stated in a letter to Brooks.
He said Brook’s involvement in financial analysis “may ignite a sense of urgency on the part of the administration and the Legislature” to revisit the 2007 budget.
In his “Dear Colleague” letter, Cruz pointed out that GovGuam’s operational deficit grew by $137 million during fiscal year 2006.
“I am in total agreement with Sen. Cruz’s analysis,” Respicio said.
“Countless media reports about the lack of cash released to the priority areas of our government, including public education, public health and public safety, pending tax refunds and the $123 million cost of living allowances settlement, coupled with outstanding vendor payables, millions owed to the Retirement Fund and earned income tax credit recipients, indeed tell the sad tale of our financial woes,” Respicio said.
In the 28th Legislature, Democrats voted against the 2007 budget measure which placed the revenue projection level at $457 million.
 Cruz’s proposal to slash the budget by $40 million was never discussed on the floor.
Freshman Democratic Sen. Judith Gutherz last week introduced Bill 16 that revives Cruz’s budget cut proposal.
The Democratic bill, cosponsored by Respicio and Sen. Tina Muna Barnes, seeks the expiration and eventual revision of the current budget by March 31 to reflect a revenue level that they said the government can actually collect.
They said budget shortfalls have occurred in the past because of the administration’s  “erroneous revenue estimate.”
Meanwhile, Calvo’s Bill 15 requires that the directors of the Department of Administration, the Department of Revenue and Taxation, and the Bureau of Budget and Management Research provide revenue tracking for the balance of the fiscal year “based upon the actual collections of the preceding month and prepare a comparative statement of the actual and projected revenues.”
The bill provides that if the projected fiscal year 2007 revenues based on collection experience results in a 3 percent fluctuation, then the governor would be required to submit a fiscal realignment plan that will address the revenue fluctuation.
Cruz earlier said the administration’s Statement of Revenues, Expenditures and Changes in Fund Balance dated Sept. 30, 2006 indicated that GovGuam has a “beginning fund balance” or deficit of $343.9 million, against its $137.1 million revenue sources.
Cruz said the two amounts—totaling $481 million—is the corresponding “ending fund balance,” or the total amount of the deficit.