June 28, 2018
Cumulative Deficit reduced from $300M to $73M
A combination of reducing spending and increased revenues have resulted in a surplus of $32.7 million surplus for Fiscal Year 2017.
The audit report issued by Deloitte & Touche contains an unmodified, or clean, opinion on GovGuam’s financial statements.
The Government of Guam has kept up with obligations, reduced aging on vendor payments, refunded more than $1.3 billion in overpaid taxes and EITC, caught up and maintained COLA payments and increased the fleets of emergency response vehicles while also reducing its cumulative deficit since taking office in 2011.
“Ray and I want to thank all of the hardworking men and women of the Government of Guam who have taken on additional responsibilities. Many of you are wearing different hats at work, maximizing our personnel resources ensures continuity in government operations,” Governor Calvo stated.
Lt. Governor Ray Tenorio said, “Together with our partners in the community, we have moved our island forward and our economy is growing. It’s evident everywhere — from the new businesses that are popping up, to the packed malls and restaurants. It’s an exciting time to live in Guam!”
What does a surplus mean?
Basically, we spent less than we budgeted during Fiscal Year 2017, which went from Oct. 1, 2016 to Sept. 30, 2017. The surplus achieved helped to reduce the cumulative deficit to $73 million.
Increased revenues, reduced expenditures
The Calvo Tenorio administration also remains committed to maintaining fiscal stability. Governor Eddie Calvo and Lt. Governor Ray Tenorio, at the start of the administration in 2011 were faced with a deficit of more than $300 million at a time when government revenues were $500 million. We’ve been chipping away at the expenditures while working to increase revenues. Today the cumulative deficit is reduced to $73 million as our revenues exceeds $800 million.
2011: Revenues: $500 million Deficit: $300 million
2017: Revenues: $800 million Deficit: $73 million
Safety, health and education prioritized
The government is operating economically with the bulk of expenditures directed towards programs that serve public safety, health and education. As government revenues increased over the last several years, so has the investment into these government services.
Over the years, there’s been a reduction in Government of Guam employee numbers, requiring employees to work more efficiently — which is particularly necessary because the amount of legislative mandates have increased. Are we where we want to be yet as a government? Not yet — we’re definitely moving in the right direction.
June 28, 2018