(Hagatna, Guam) The Governor echoes Sen. Dennis Rodriguez’s clarification of the misinformation put out by Sen. Mike San Nicolas on the GMH financing package the Legislature will discuss this afternoon in session. As a matter of fact, the Governor wants the public to know that the damage done goes beyond San Nicolas’s misinformation to the public.
“Had Sen. Respicio not stepped in, Guam would have lost $17 million simply because Sen. San Nicolas refused to act on Sen. Rodriguez’s bill,” Governor Calvo said.
Sen. Rodriguez’s Bill No. 340 authorizes a financing package comprised of two parts:
- Authorization to take out $30M in new debt to pay for GMH bills to its vendors; and
- Authorization to refinance $240M in EXISTING debt and SAVE taxpayers about $17M
The savings are contingent on one thing: a lower interest rate that is possible in today’s bond market.
“The window for getting that interest rate is closing,” Governor Calvo said. “It was simply reckless and highly political to hold that bill from moving forward. Even if you don’t agree with funding GMH, there was no reason to hold back the refinancing of the existing bonds so we could achieve savings.”
The Governor is thankful the rest of the Legislature is prepared to deliberate on the bill. “I thank Speaker Won Pat for calling session. And I ask senators to consider our request to add the $140 million in funding we need to build up GMH. This answers the concern that a ‘bailout’ always will be necessary. If we build the outpatient facility, it will make the money GMH needs to begin sustaining itself.”
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