Feb. 26, 2018
Hagåtña — Governor Calvo this morning ordered executive branch agencies to prepare for the possibility of furloughs, layoffs and even a 32-hour work week.
“My team continues to be available to senators and provide information they need. The dialogue continues and we are still hopeful that we’ll be able to stave off furloughs or a reduction in hours,” Governor Calvo said.
It is important to note that even with furloughs implemented, deeper cuts will be required to make up the entire $67.9 million revenue shortfall. The Administration and Legislature have been discussing the possible consequences of the new federal tax law for a few months now. But after a series of meetings to include, Special Economic Service meetings, meetings with the fiscal team, special session and committee of the whole, and a meeting with the Governor and his fiscal team, Senators haven’t voted on a solution.
In the letter to DOA, the governor instructs them to “begin assessing current operations and services and identifying those employees that would be deemed non-essential to meeting the core functions and mandates of each agency. Employees that fall under programs or services that are deemed non-essential must be identified and an adjusted staffing pattern must be prepared and reported to the Bureau of Budget and Management Research.”
“This assessment will serve as a first step in following all proper procedures should furloughs and layoffs be considered necessary to make up the shortfall in income of anything less than a 2 percentage point increase as proposed in Bill 245-34,” the Governor writes in the letter to DOA.
Additionally, all hiring for locally funded positions will be frozen, and all overtime, to include public safety, must be minimized.
Bill 245 seeks to stabilize the government’s finances — and thus its ability to provide government services — as well as help the Department of Education and Guam Memorial Hospital.
The Legislature is reconvening session today and all residents and GovGuam employees are invited to watch.