Hagåtña — The Legislature mandated a fiscal realignment plan to reflect the required $30 million in cuts to General Fund Revenue appropriations for the remainder of the current fiscal year. The Administration submitted a plan to the Legislature on Friday, March 23, 2018 that reduces appropriations — from $688.5M to $658.5M — by the required $30 million. (See Page 3 of the Fiscal Realignment Plan)
Speaker Cruz, in his press release, acknowledges the $30 million reduction. He also recognizes the net increase of $1.52 million in the Guam Memorial Hospital Authority (GMHA) Pharmaceuticals Fund.
“This is because of a net reduction in General Fund appropriations of $30 million and a net increase in Special Fund appropriations of $1.52 million. This net increase is driven by a higher appropriation to the Guam Memorial Hospital Authority Pharmaceuticals Fund—an amount determined by a percentage of Business Privilege Tax projections.” – Speaker BJ Cruz
By law, a portion of the BPT goes towards the pharmaceutical funds that Speaker Cruz refers to. When Public Law 34-87 was enacted, BPT increased, and with it – the GMHA Pharmaceutical Fund. (See Page 3 of the Fiscal Realignment Plan).
It is unclear why Speaker Cruz is questioning the additional $1.52 million.