GUAM v Puerto Part 1:
Guam is not going down the road Puerto Rico traversed
July 17, 2018
As the Legislature tackles the $160 million question that is the shortfall in the Fiscal Year 2019 budget, there are false assertions that require correcting, primarily that Guam is following the same road that Puerto Rico suffered. Our sister island is going through a municipal bankruptcy — but that was years in the making and much of it was a lack of a plan. This is one of the reasons the administration has argued high and low for Senators to come up with a plan to allow the government to plan and operate in a stable environment.
We don’t have to be like Puerto Rico. Currently, our government is doing well. But on October 1, 2018, that could change if Senators continue this irrational behavior of moving without a proper plan.
Political operatives and those seeking elected positions continue to spread false comparisons between Puerto Rico and Guam to create chaos, confusion and fear in our community. Don’t let them fool you.
You don’t even have to take our word for it. Look around — malls are crowded, car dealerships are selling cars, there are more businesses opening, and local businesses are expanding. At least one business is even taking advantage of the lower taxes they’re paying due to the new federal Tax Cuts and Jobs Act and have given their employees a raise along with benefits.
Even investors see it. The Port Authority of Guam just sold bonds at a rate that allowed a savings of more $20 million from the initial estimated projections. The investment grade ratings by S&P and Moody’s, the highest combined rating for any government credit, were instrumental in securing the very favorable interest rates, saving the Port millions of dollars in interest payments.
Guam’s economy is doing very well and though we have our challenges we are in a position to overcome them so long as we keep working to make Guam greater.
