HAGÅTÑA (The Guam Daily Post) — Discussion over how to spend another historically big budget for the government of Guam kicked off this week at the Guam Legislature.
The Legislature’s $1.168 billion proposal for fiscal year 2024 is even more than what Adelup asked for back in February, by about $43 million. But even with that record-high for GovGuam, agencies like the Guam Memorial Hospital Authority and the Mayors Council of Guam are still millions short of what they say they need to keep up with inflation, rising utility costs and other expenses based on the proposed budget act.
Lawmakers will meet with public finance officials from the governor’s office Wednesday to work toward a final projection of how much revenue will come into the local government in FY 2024. From there, it’s all a matter of negotiating what agency or office gets what money.
Despite the setbacks and destruction from Typhoon Mawar, finance heads at the Legislature and Adelup both expect the government of Guam’s coffers to keep growing as federal and local spending on post-typhoon repairs keep tax collections up high, the Post reported previously.
The budget proposal from lawmakers anticipates about $27.6 million more in Business Privilege Taxes than what the governor’s office is projecting – at a full $334.7 million – through fiscal 2024. Individual and withholding taxes are also up by $6 million in the Legislature’s budget proposal, while revenue from special funds is up by another $8.48 million.
The total amount of General Fund money available for appropriation in the legislative budget is $812.29 million.
Senators met briefly in session Monday, but budget chairman Sen. Joe San Agustin asked to recess until 9 a.m. on Wednesday so that lawmakers could review the newest, substitute version of the budget act.
Coming up short
Several agencies are penciled in to get less than what they told lawmakers were critical for operations.
As it struggles to keep up with skyrocketing costs for medical equipment, medication and increased salaries, GMHA will get the $8.5 million from the General Fund that hospital leadership wants to subsidize revenue. But they will get only $19 million from the GMHA Pharmaceuticals Fund, not the $33 million officials asked for. The fund gets a fixed 6.1% of business taxes and was expected to fall short.
The University of Guam, which this year lobbied for $42 million from the General Fund to keep up with utility costs and stave off a tuition hike, will get only $27.5 million – an increase from last year but still less than the $37 million the university got back in fiscal 2018. Outgoing UOG President Thomas Krise has said falling local support has the university close to a breaking point on its tuition rates.
Meanwhile the Mayors’ Council of Guam will get $8.8 million from the General Fund, an increase of $1.4 million from last year. However, it is still short of $15.26 million mayors said they needed to implement the 22% general pay raise and keep over 100 community maintenance workers on payroll after the MCOG was cut off from Guam Highway Fund money last year. Adelup has agreed to use federal American Rescue Plan money to keep workers paid, but the funding is not a long-term solution.
Finally, the Department of Public Health and Social Services did get the $68.5 million in local funding it requested, but the budgeted amount will still leave the agency about $11.2 million short of what officials said was needed to operate the Division of Children’s Wellness and Division of Public Health. The agency will, however, get about $32 million more local funding than what the governor requested.
Also coming in with an increased budget is the Guam Department of Education, which will get a $246 million budget – including $10 million more from the General Fund than was provided for in the governor’s budget request. Included in that increase are provisions for $3.1 million to go toward merit bonus payouts, and $1 million for special education staff bonuses.
Public Defender pay raise
Government defense attorneys could get a windfall if the budget act passes in its current form. A 15% specialty pay would be provided as a provision of the act, similar to what Sen. Roy Quinata proposed earlier this year to get lawyers at the Public Defender Service Corporation paid on equal terms as prosecutors at the Office of the Attorney General. That proposal met with stiff opposition from AG Doug Moylan and support from PDSC Director Stephen Hattori.
Sen. Joe S. San Agustin raises concerns to Department of Education Superintendent Kenneth Swanson during an emergency session at the Guam Congress Building in Hagåtña on Aug. 1.
