HAGÅTÑA (The Guam Daily Post) — The government of Guam missed its General Fund revenue target by $8.2 million and most of its special revenue funds hit the red during the first two months of fiscal 2021, based on government data.
The governor’s complex is seen Nov. 24, 2020 in Adelup. The government of Guam’s General Fund revenues fell short of its goals in the first two months, according to reports.
Photo by David R. Castro/ The Guam Daily Post
GovGuam projected it would collect $172.03 million-plus in revenue in October and November, but ended up with only $163.76 million or 4.8% short.
The decline was mostly on business privilege tax collection, which was down by nearly $7.7 million.
Moreover, the first two months’ overall revenue collections were down $18 million compared to the same months last year.
If the trend continues, GovGuam could end fiscal 2021 with a shortfall of about $8 million.
These are all based on the latest Consolidated Revenue and Expenditure Report that the Bureau of Budget and Management Research sent to the Legislature on Monday last week.
Many Guam businesses are either still prohibited from reopening or are allowed to operate only at 25% or 50% capacity as part of controlling the further spread of the virus that causes Covid-19, while tourism remains at a standstill because of pandemic-related travel restrictions.
As for projected special fund revenue, BBMR estimates that five of six major special funds will miss their targets by $346,729 to $1.2 million.
“It is important to note that estimated revenue reductions as a result of decreased visitor arrivals due to Covid-19 are incorporated in the revenue tracking,” BBMR said in the report.
The Tourist Attraction Fund, collected from hotel room tax, is tracking to collect only $17.09 million in fiscal 2021 based on the first two months’ actual numbers, or $1.24 million short of the target $18.34 million.
Only the Healthy Futures Fund, collected mainly from cigarette and tobacco taxes, is tracking to exceed its revenue target – by $538,959.
From a projected $42.75 million revenue, it’s tracking to end up with an actual collection of about $43.29 million.
Besides the TAF, the Guam Highway Fund, the Solid Waste Operations Fund, the Territorial Educational Facilities Fund, and the Customs, Agriculture and Quarantine Inspection Fund are tracking to miss their targets for fiscal 2021.
The Guam Highway Fund is mostly from liquid fuel taxes, while the Streetlight Fund comes from a portion of fee paid for motor vehicle registration.
The Customs, Agriculture and Quarantine Inspection Fund is mainly from passenger inspection fee, and with Covid-19 upending tourism, the targets are expected to be short for the year.
In October and November, it was short by $667,500, from the projected $812,626 to only $145,118.
