Jan. 31, 2017 — (Hagåtña) Governor Calvo has submitted a budget proposal that will lead to a fifth year of surplus and provide funding for more school buses, medical care, police officers, firefighters, children’s and veterans’ services, and a new Hay Study, among others.
We attached the Governor’s transmittal letter to Speaker Benjamin Cruz, which highlights the budget. Here is an outline of that message:
Economic outlook:
- The economy continues growing moderately
- The economic activity will translate to higher tax revenue
Revenue:
- Despite moderate growth, budget professionals chose a conservative growth rate for revenues: 5%
- The increase is based off this fiscal year’s adopted level
- The revenue projection for FY 2018 is $885.2 million
- Of this amount:
o $125 million is set aside for tax refunds
o $14.7 million is reserved to pay down the deficit
o $23.1 million is for various General Fund set asides
- This leaves $722.4 million available for appropriation
Appropriations:
- The governor proposes increases to the Judiciary and the Legislature’s budgets, considering organic growth and the resources needed to modernize government all around
- Of the $41 million increase in revenue available for appropriation, the governor proposes funding for:
- Purchase of new school buses
- Hiring of firefighters
- Hiring of police officers
- Hiring of corrections officers
- Filling of vacancies and promotions within the fire and police departments
- More money for the Guam Memorial Hospital (GMH)
- Fully funding the retirees’ medical, dental, and life insurance
- Funding for retirees’ Medicare premiums
- More money for the Department of Education
- Hiring of staff to improve veterans services
- Funding of the triennial Competitive Wage Act Study
- Funding of the triennial real property revaluation
- Additional staffing for the procurement and technology offices, along with the Division of Accounts at the Department of Administration to improve public services
- Operational funding for the Governor’s Office, the Legislature, the Judiciary, Public Works, Chamorro Affairs, Election Commission, and various smaller amounts for several agencies.
Transmittal Letter FY2018 Executive Budget
-end of release-