The Legislature recognized that funding these vacancies and allowing appropriation levels for the Guam Department of Education to fall below its current requirements “is tantamount to an egregious sacrifice in the quality of education…which already experienced the downfall of financial disturbances at their school campuses and in the classroom,” according to substitute Bill 145.
The bill does not include appropriations for vacancies in fiscal year 2012 funded by the general fund.
The bill imposes a hiring freeze, and all branches, departments and agencies are prohibited from filling vacant positions with appropriations, except for law enforcement, education, public and mental health departments.
Senators were expected to wrap up the budget session Friday and transmit the bill to the governor for his approval or veto. By law, a budget must be passed by Aug. 30.
Last Wednesday, Calvo and Lt. Gov. Ray Tenorio made a dramatic appearance in the legislative public hearing room during the presentation made by his fiscal team regarding the administration’s $344 million bond-borrowing proposal.
Calvo told legislators he will make his cuts in personnel, which means layoffs. Calvo also said he will begin letting go of unclassified government of Guam personnel and go through the bumping-off process with classified employees.
The governor said the cuts his administration is doing now is to ensure that in the future, there will be enough revenues coming in to cover tax refunds and the costs of running the government. “The bond borrowing is just to catch us up,” said Calvo. He proposes to pay the 2010 and prior-year tax refunds totaling $311 million to individuals and corporations.
The governor’s proposal will bring current the government’s obligation to pay tax payers, and Calvo promised he will ensure tax payments stay current and not lag behind.
By April 2012, Calvo said more than 146,600 individual tax returns and more than 345 corporate filers will be waiting for almost $358 million from the government, which includes $12 million in interest.
