Calvo has already begun the process by laying off unclassified employees.
In his weekly address, Calvo said his administration had seven months to assess the government of Guam’s operations.
On Saturday, he met with his senior staff and cabinet to assess and discuss the reorganization. Calvo said it is time for change after 61 years.
“Under the Organic Act, the governor has a duty — not just a power, but a duty — to assess and reorganize the government from time to time. For the first time, I will be exercising this duty on a substantial scale,” said Calvo.
One component of the reorganization is downsizing of the government, he said. Department and agency heads came forward with cost-cutting plans. “Layoffs are part of that plan,” Calvo said.
He decided against a 32-hour workweek, because he did “not want to punish employees across the board. That is not a solution to the structural imbalance.
“We have to reduce the size of government. We already started by laying off unclassified employees. Sometime this week, we will begin the process of classified layoffs by sending written notices to all employees,” said Calvo.
The governor said the government owes $280 million in tax refunds, and the government’s deficit will be close to $400 million by Oct. 1.
“We will never get out of this hole with the current size of the government for one very fundamental reason: The cost of providing every government mandate and service is far more expensive than the amount of cash coming in to the Treasury.”
The layoff notice does not mean employees are already being laid off, said Calvo, it is merely part of the process.
“It is a general notice. Individual notices will be sent according to each agency’s reorganization plans. Also bear in mind that agency heads will choose positions for layoffs, but it is the Department of Administration human resources division that will decide who gets laid off based on seniority and performance evaluations,” he said.
To assist those who are laid off, Calvo said the Department of Labor and the Agency for Human Resources Development are working on a displacement and re-engineering program.
“They are prepared to help displaced government employees transition into private sector jobs, business opportunities, or higher education at Guam Community College and University of Guam,” said Calvo.
“We want to do everything possible to assist families hurt by this downsizing. As much as possible, we want these people to have jobs, to stay out of welfare and to continue contributing to the economy.”
