The American Recovery and Reinvestment Act funds were originally earmarked for capital improvement projects but were in danger of being forfeited due to the likelihood that GDOE would not be able to expend the funds by December.
In February, Gov. Eddie Calvo discussed the need to shift the ARRA funds to prevent it from being lost.
Sen. Ben Pangelinan then introduced Bill 103 in March to reprogram $60 million in CIP funds to pay for GDOE personnel costs, including salaries and benefits.
The bill was enacted into Public Law 31-40 in May, which deposited the funds into a trust account.
The government of Guam in June submitted a request to amend its State Fiscal Stabilization Fund application to reprogram funds allocated for CIP to supplement funding for personnel salaries and benefits, according to Calvo’s spokesman, Troy Torres.
Public Law 31-40 follows the U.S. DOE’s stipulation that the government of Guam and GDOE submit a report detailing the obligation of trust funds for State Fiscal Stabilization Fund-approved projects by a Sept. 30, 2012 deadline.
“Our schools cannot function without teachers, administrators and essential facility personnel. Education is a true priority, and that means we need these employees,” Calvo said. “This money will also grant the public school system more time to properly and responsibly improve campuses throughout the island.”
“It is no secret that our government is struggling to meet its obligations, but this administration is committed to making tough decisions and finding effective solutions quickly,” Calvo added.
As part of the U.S. DOE’s approval of the amendment, GDOE must also provide quarterly progress updates to the federal agency. The first report is due this year on Oct. 31.
