(Hagatna, Guam) The Governor found a way to use $1 million to pay for $2 million in hospital debts, and he introduced a bill to the Legislature late last night to get it done.
The attached bill proposes to take about $1.3 million in excess funding at the Legislature and prioritize the money to Guam Memorial Hospital. GMH will use that money to pay Medicaid. For every dollar the local government pays for Medicaid, the federal government matches it with a little more than a dollar.
The Governor discovered this pot of money, which grows almost every year, after reviewing the Legislature’s financial data released following a Freedom of Information Act request. Depending on whether any senators used carry over lapse funds since that data was given, we anticipate over $1 million will be used to cover $2 million in Medicaid expenses, freeing up $1 million in the local budget so that GMH can pay down its debt to the Retirement Fund.
In these last few months, indeed since discussion of the current budget last year, the Legislature has shown great concern for Guam Memorial Hospital.
“I’m happy we can find this common ground to promote fiscal transparency and discipline further while helping GMH,” Governor Calvo said.
This pool of lapsed funds is money that has sat unused at the Legislature, but remains available to spend at senators’ or central office discretion.
“I wish to thank the Legislature for its release of financial records that led to the discovery of about $1.3 million in lapses carried forward from the previous fiscal year. Indeed, we have found that the lapses have been growing nearly every year, according to the records the Legislature sent to us,” the Governor wrote in his letter to Speaker Won Pat.
“Essentially, the Legislature will be able to give GMH and all its patients a ‘2 for 1 deal.’” — Gov. Calvo
The Governor also offered to the Speaker any assistance Senators may need to ensure the public hearing on this bill is held soon.
Letter to 33rd Guam Legistlature Regarding GMHA Lapse Funds Bill