HAGÅTÑA (The Guam Daily Post) — Gov. Lou Leon Guerrero delivered her annual State of the Island address Tuesday night, and while she would ultimately discuss health care issues, procurement woes and public safety matters, the governor began by recalling some of her administration’s accomplishments amid long-standing challenges, proclaiming that “thanks to those who believe in Guam,” the state of the island “is strong and our future is bright.”
“Without question, I address you tonight at a time of great opportunity and challenge,” the governor added.
Financial issues and deteriorating conditions at the island’s only public hospital have taken center stage in recent debate, along with where to locate a new public hospital. Leon Guerrero dedicated a portion of her speech to address criticisms and forward the administration’s plan for a new medical complex.
“Our hospital challenges must be looked at in two ways: the actual facility, and management and operations,” the governor said.
“Some of you have said we cannot build a new hospital until we fix the current hospital. Building a new hospital is fixing the current hospital. We are well aware that (Guam Memorial Hospital) is nearing the end of its life span – no matter how much money we pour into it – and we must build a new facility. The delay, of course, is in the selection of the site,” she added.
Location
Just this past session, in February, lawmakers narrowly passed legislation that ensures a new public hospital would be built at Ypao Point in Tamuning while rejecting the governor’s proposal to facilitate the sale or lease of Guam Ancestral Lands Commission property in Barrigada and Mangilao for the purpose of constructing a medical complex, to include a new public hospital and other facilities.
The Office of the Governor has already stated that the Ypao Point measure, Bill 185-37, will be vetoed. Leon Guerrero had until Wednesday to act on the bill.
No veto had officially been announced by Adelup as of press time Wednesday.
On Tuesday night, the governor said Bill 185 would place a new hospital on land that “will not and cannot” meet the island’s expanding health care needs.
“It is a site that sits on a seismic fault line, which creates a financial investment risk acknowledged by our bond underwriters and would greatly prohibit and restrict access to the capital market. Lastly, this bill denies our people any other potential site location by mandating that a hospital can only be built in Tamuning. Rarely, if ever, in my lifetime has the Legislature passed a statute so restrictive regarding the construction of such a vital facility,” Leon Guerrero said.
The governor told lawmakers that their disagreement on the location is not about her or that “it has to be my way or no way.”
“It is about my conclusion as governor, after input, study, research, and exploration of other sites, that Ypao is not the right location,” she added.
Leon Guerrero would later speak on calls to expand the footprint of the Veterans Affairs Guam Community Based Outpatient Clinic, adding that veterans’ health service issues are also why she is passionate about co-locating veterans services with the medical complex.
Tuesday’s address was preceded by an oversight hearing on the Guam Memorial Hospital Authority, where it was stated that GMHA is expecting a $30 million shortfall for operations by the end of the fiscal year.
During her speech, the governor stated that her administration is in active discussions with off-island experts to assess GMHA’s operations, including its financial system and revenue cycle.
“(GMHA CEO/Administrator Lillian Perez-Posadas) recognizes the need to partner with private health care experts to address our health care personnel shortages and the financial stability of the hospital,” Leon Guerrero said.
Beyond hospital issues and moving into public safety, the governor asked the Guam Legislature to consider granting greater annual leave accrual to law enforcement officers and to keep pace with pay increments.
“A salary increase means nothing if it is eroded by years of missed annual adjustments. I believe our proposition to future law enforcement officers is fair; we will give you good wages, regular increments, an early retirement age and ample time off with your families,” Leon Guerrero said.
Repay training costs
But moving forward, the governor said, the government will expect something more of new law enforcement recruits.
“If we train you for a career in law enforcement, we will ask you to sign on to a minimum three-year commitment to serve the agency you trained with. Should you leave government service early, you will be asked to repay the prorated share of your training cost,” Leon Guerrero stated.
“We respect your right to advance and do more with the skills you’ve learned for free, but this opportunity does not come without a cost, and it should be available for those who want it after you leave,” she added.
The governor went on to discuss the island’s problem with drug addiction, stating that “the evidence shows” Guam can’t simply “punish our way out of drug-related crime.”
“A more effective avenue based on evidence would be to expand rehabilitation efforts,” the governor said.
“And because (Lt. Gov.) Josh (Tenorio) and I both know that issues of addiction are often coupled with the challenges of homelessness and abuse, one multi-unit apartment complex is being prepared to function as transition housing in our ongoing effort. And an emergency drop-in shelter will follow soon after,” the governor said.
She added that her administration is pursuing a new automated system for customs data at the port, which would help improve security and fight corruption by “enhancing transparency and streamlining cargo control, transit and clearance of goods into our island.”
Concerns with AG
The governor also took time in her speech to highlight concerns with the attorney general’s recent decision to withdraw representation from agencies under investigation by the Office of the Attorney General. This essentially stemmed from conflict allegations raised in ongoing corruption cases, due to attorneys at the OAG having provided legal advice to agencies in which current or former officials are now facing prosecution.
Attorney General Douglas Moylan chose to withdraw representation from agencies facing investigation until the courts clarified the matter, a decision that the governor’s office characterized as an abandonment of duty that has hampered critical government services and procurement efforts.
“No legal help for the Home of the Sharks, (we are) still waiting on a construction management contract for a new Simon Sanchez High School. No legal advice on the issuance of complex development permits. Potentially, no contracts issued for lifesaving equipment, drugs, adult day care or behavioral health intake services. And millions in federal grants potentially lost or at risk simply because Guam’s chief legal officer – our attorney general – has chosen to abandon his Organic Act (of Guam) responsibility. … People will suffer from your actions, Mr. Attorney General,” Leon Guerrero said Tuesday night, with Moylan among those in attendance at the Guam Congress Building.
The governor’s office is one of 22 government entities currently under investigation by the OAG.
“Senators, I want you to know that my first call after receiving the AG’s letter last week was to Speaker (Therese) Terlaje. We both agreed that this paralyzing move by the attorney general’s office would be disastrous to our people. Madame Speaker, I am counting on your leadership in this body to help us resolve this very serious issue, to ensure that progress in the lives of working people, in business and the economy moves forward despite any and all attempts to destabilize it,” Leon Guerrero stated.
The speaker called for an emergency session Wednesday to address a temporary power procurement bill and the issue of the OAG’s withdrawal. She stated in a letter to colleagues that Moylan’s decision has “resulted in a threat to the welfare of the people of Guam.”
Sen. Amanda Shelton introduced legislation that would authorize the governor to hire an independent counsel to review and approve procurements worth $500,000 or more when the OAG cannot do so because of a conflict of interest or other reason.
Moylan has proposed his own legislation, which adds a provision stating that in no event should a “disqualifiable conflict of interest exist” or any attorney-client or other privilege be asserted that a public official can use to disqualify the attorney general or his office from continuing to represent the government of Guam/people of Guam.
Moylan’s proposal also states that the attorney general’s role regarding procurement review is solely to protect the public interest, and public officials would not be able to claim that an attorney-client privilege or any privilege was created with the AG’s review. Moylan’s proposal also states that the attorney general’s review of procurement documents would not bar the AG from later prosecuting individuals associated with that procurement.
Sen. William Parkinson had also thrown his ideas into the ring, drafting legislation that would create the Office of the Public Prosecutor, which he said would ensure that the government’s legal affairs are handled without a conflict of interest.
Remove automatic stay
On procurement matters, the governor also addressed concerns with procurement protests, which have hampered attempts to increase generation capacity on Guam.
She urged lawmakers to reconsider the automatic stay provision in Guam’s procurement law, which places a stay in the event of a protest, particularly for projects essential to the island’s economy, safety and infrastructure.
“Procurements should be stayed on the basis of legal merit – not simply because someone lost a bid. And specific timelines should be set for the resolution of protests. We cannot have a one-size-fits-all approach to the procurement stay process,” Leon Guerrero stated.
The governor capped Tuesday’s address by asking senators to send her “real public policy” in which they can find common ground.
“Send me a land use plan so we can build the future well. Let’s fund the (GALC) land bank so we can make eligible families whole again. Send me plans to build new precincts and fight the true causes of crime. Show me new and innovative public policy to combat inflation, capture more revenue and expand our economy. And in this term, let us construct a new hospital in a location that fosters growth and progress for our island,” Leon Guerrero said.
Gov. Lou Leon Guerrero delivers her 2024 State of the Island address at the Guam Congress Building in Hagåtña on Tuesday, March 5, 2024.


