Good afternoon,

Following a meeting with Speaker Won Pat and Minority Leader Sen. Tony Ada this afternoon, Governor Calvo lifted the freeze on increments and ordered retroactive pay for increments earned during the period of the freeze. His message to GovGuam employees follows:
Special Address on Increments
By Eddie Baza Calvo
My fellow GovGuam employees,
Over the past two years I’ve asked you to make a lot of sacrifices. In order to have enough money to pay tax refunds, you supported the bond and you went without your pay adjustments and increments. We really didn’t have a choice because this government couldn’t afford to pay its promises to you. In essence, previous leaders wrote you a bad check… and on the note they forgot to write, ‘Empty Promise.’
I’ve been honest with you about our government’s fiscal situation. Every step along the way, I’ve kept you informed about all the bills we have to pay and the money coming in. You didn’t complain when we prioritized tax refunds. You didn’t complain when I told you that in order to pay these bills, we will need to sacrifice within government. I told you about our plan to fix government finances, and I promised that once everything became stable, I would restore your increments.
I made that promise to you, and today I’m keeping that promise to you. Minutes ago I signed an executive order lifting the freeze on increments, and ordering retroactive payment to all employees who earned the increments during the freeze.
We are able to restore increments because, since December last year, our government has been in a position of increasing fiscal strength. We paid off the tax refunds, and we began paying very old bills, like overtime and the merit bonuses. We’ve reduced the aging of vendor payables in the line agencies, and we’re living within our budgets. I’m very proud of all of you because we wouldn’t be where we are today had it not been for your sacrifice. More importantly, despite your sacrifice, your commitment to excellence has ensured the survival and improvement of this government.
Imagine where we were just two and a half years ago… when this government was on the brink of collapse… and look where we are today. Your sacrifice was part of the reason we are a stronger government… now in a position to serve our people and the generations who will follow.
With continued fiscal discipline, we will pay the remainder of the merit bonuses, implement the pay adjustments, and pay all our other outstanding liabilities. For the first time in your memory, the promises this government has made to you will be fulfilled.
Thank you, and God bless you all.
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