“I signed this budget into law to avert a government shutdown. If it were not for this reason, I would have vetoed it,” Calvo stated in his transmittal letter.
The governor said he will continue to “exercise my executive authority as I see fit throughout the fiscal year should there be any decline in projected revenues. We must be responsible and proactive in our efforts to thwart any deficit spending.”
Among the most important concerns expressed by the administration’s fiscal policy team are inadequate revenue projections to support the critical mandates of government services; continuing appropriations for agencies reporting lapsed funds that were unable to be remitted due to the cash shortfall in F Y2011; and appropriation shortfalls for critical agencies such as the Guam Fire Department, the Guam Memorial Hospital and the Department of Revenue and Taxation.
Among other concerns the governor addressed was the shortfall in critical service areas, saying, “The government may not have the ability to fill management level positions critical to department operations.”
Calvo is referring to a government-wide hiring freeze. The inability to fill critical management positions will negatively impact the mandated services and abilities of departments and agencies.
However, lawmakers say this is not the case since government agencies are allowed the ability to hire for critically-needed staff.
Among other concerns, the administration’s fiscal policy team projects the following funding shortfalls for certain government entities: Veterans Affairs Office, $65,733; Guam Fire Department, $2.5 million; Guam Memorial Hospital Authority, $2 million; Department of Mental Health and Substance Abuse, $2.1 million; Department of Integrated Services for Individuals with Disabilities, $44,756; Department of Administration, $783,456; Guam Regional Transit Authority, $79,143; and the Department of Revenue and Taxation, $1.2 million.
