MEMBERS of the House Ways and Means Committee and the Senate Fiscal Affairs Committee met on Tuesday to discuss Gov. Arnold I. Palacios’ fiscal year 2025 revised budget submission.
On Friday, the governor submitted to Speaker Edmund S. Villagomez and Senate President Dennis C. Mendiola a revised budget identifying $22,042,275 available for appropriation, made possible by the government’s issuance of a pension obligation bond.
Palacios said over $30 million in bond proceeds were transferred directly by the Bank of Guam to the NMI Settlement Fund for the FY 2025 payment of the retirees’ 75% pension benefit.
In an interview after the meeting, House Ways and Means Committee Chair John Paul Sablan said they reviewed the governor’s proposed revised budget and allowed members to raise any concerns.
“The governor’s revised budget submission was pretty much straightforward in proposing allocations of the additional budgetary resources,” Sablan said.
He said members expressed hope that the newly enacted 3% construction tax would be “incorporated” in the new appropriation measure.
According to the governor, the Department of Finance will soon promulgate the rules and regulations for the new tax law’s implementation.
In his revised FY 2025 budget submission, the governor is asking lawmakers to appropriate $22,042,275 for the following purposes:
1) $14,814,483 for the restoration of work hours to 100% for active employees across all instrumentalities.
2) $6,627,792 for the payment of 25% of the retirees’ pension benefits.
3) $600,000 for additional allocations to House and Senate members and the restoration of operational funds for the Legislative Bureau.
