March 11, 2018

Hagåtña — Since January, the executive branch has implemented cost-cutting measures to avoid a shutdown of services. Going into this week, the government will continue to make deeper cuts without a bill passed by the legislature to bridge the financial gap.

To date, the following cost-cutting measures have been implemented:
All hiring and promotions – suspended 
Limited Term Appointment contract renewals – suspended (except in certain cases)
Incremental increases – suspended
All overtime, Administrative Leave, and travel – suspended (except in certain cases)
Reduction of overtime costs at GFD/ closure of two fire stations
Reduction of overtime costs at the Department of Corrections by redirecting Guam Police Department personnel
Reduction in executive security costs for both the Governor and Lt. Governor
Adelup takes a 32-hr workweek
Reduction of power usage and consumption 
Reduced fuel costs

The Governor’s Office solicited cuts in services from agency heads and staff in January. The following cuts are being considered in addition to many others:
Suspending government busing to private schools.
Disconnecting 50% of streetlights
Cutting leases at government agencies. E.g. Department of Chamorro Affairs, CAHA, Department of Revenue and Taxation. 
Cutting service contracts. I.e. Guam Museum operating contract.
Suspending operations at government gyms and recreational facilities to include the Paseo Stadium, Hagatna Pool, Dededo Pool and Dededo Sports Complex.
Suspending operations at recreational facilities in the evenings to conserve power.
Not renewing the lease for the Department of Rev and Tax driver’s license satellite office, located in Hagatna, which services approximately 100 people per day.

More cost-cutting measures are under consideration as the island continues to hold its breath in anticipation of the Legislature passing a bill to solve the local government’s $67 million fiscal crisis caused by the federal tax cuts, and for the perennial $30 million shortfall at the Guam Memorial Hospital.

The solution to the fiscal crisis lies with the Legislature.

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