HAGÅTÑA (The Guam Daily Post) — Government of Guam retirees could see another $100 bump to their cost of living allowance, or COLA, in the upcoming fiscal year.
Sen. Amanda Shelton on Monday amended the proposed fiscal 2024 budget act to allow the governor to pay an extra $100 to every retiree. At a total cost of $746,900, funding for the payout will come from any surplus tax revenue that the government raked in during fiscal 2022, should it be available.
Shelton, during budget talks last year, increased the baseline COLA payout from $2,000 to $2,200, about a week before the 2022 primary election. The senator’s Monday amendment could potentially bring payouts up to $2,300 in the next fiscal year.
With costs continuing to outpace family incomes, the increase was important, Shelton told her colleagues.
“This amendment is a small but yet still meaningful step toward a broader effort to support over 7,000 retirees and their survivors in our community today. I know that investing in our families and in our manåmko’ is really the greatest return on investment that we can get here in our island, ensuring that no one, especially our seniors, especially our manåmko’, are not left behind,” she said.
Lawmakers are awaiting confirmation on the availability of surplus funds, with the government of Guam late on the June 27 deadline to close out its fiscal 2022 books. A full $9.7 million worth of appropriations, including Shelton’s COLA increase, are riding on the surplus funds remaining once the fiscal 2022 audit is completed.
Either way, retirees will still see a bigger COLA check next year than they did last year. The budget act provides $16.4 million from the General Fund for the bigger, $2,200 baseline payout to retirees. It’s unclear whether pensioners saw that extra $200 in the current fiscal year, as the extra payout for fiscal 2023 was contingent upon GovGuam getting excess Section 30 funds.
Opponents
The extra $100 payout for next fiscal year wasn’t without its opponents. Appropriations co-chair Sen. Telo Taitague, who has been fighting since last term to pass legislation that would adjust COLA payouts to reflect the actual cost of living and the price of goods.
Taitague said she wasn’t opposed to paying retirees or the source of the extra payout.
“What I do have a complaint about is not really justifying a true cost of living adjustment for our retirees. We’re just throwing a number out there. And they deserve more than that,” Taitague said. “They have paved the way for us, so don’t sell our retirees short. I’m asking my colleagues, let’s do this the right way, and adjust the cost of living — not (an) allowance, but an adjustment — every year, like the federal government does. Let’s start there, instead of pulling a number out of a hat.”
Shelton’s amendment overcame an objection from Taitague, with senators voting along party lines.
Taitague and the Republican minority caucus didn’t support the change, while Shelton and the Democrat majority caucus did.
The Sen. Jesus R. Quinene Retirement Fund Building as seen Tuesday, Aug. 29, 2023, in Mongmong-Toto-Maite.
