Debt audit shows public debt decreases in Calvo Administration
We thank Public Auditor Doris Flores Brooks and her staff for conducting an audit of GovGuam’s long-term debt, finally dispelling the myth that public debt increased during the Calvo Tenorio administration. The numbers clearly show:
1.     The debt has decreased since Governor Calvo came to office
2.     GovGuam’s credit rating improved “due to the current Administration’s improved fiscal management practices and enhanced cash flow monitoring”
3.     Three-fourths of the debt increase happened well before Governor Calvo was governor: between Fiscal Year 2008 and FY 2009
Guam’s debt, while below the IMF benchmark and made more manageable under this administration, still is high. The administration has always recognized this fact, which is why unprecedented efforts were placed on effective fiscal policies over the past three years. The result?
Ø  People owed tax refunds for three to four years per refund at a time were paid, moving the debt from the people to the bank
Ø  Cash flow has improved, drastically
Ø  Because of improved cash flow and financial management, vendors now are being paid much sooner than before
Ø  The administration has squared away nearly $700 million in liabilities to Guamanians and GovGuam employees
One other consideration is that Guamanians do not shoulder the burden of the national debt. When comparing Guam’s debt-per-capita to the States, what should be noted is the stateside amounts do not factor that residents of States also shoulder the debt burden of the massive $16 trillion U.S. debt. That is an additional $53,000 each American living in the States must shoulder as debt. Guam’s debt-per-capita is far less than that alone.

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