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


  •       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


  •       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-

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