(Hagåtña) – Legislators are back in session today following yesterday’s discussions on Governor Eddie Baza Calvo’s bill 245-34 that proposes a temporary 2% increase for business privilege taxes which will stabilize the impending Government of Guam fiscal crisis, provides a permanent & dedicated funding source to the Guam Memorial Hospital (GMH), and gives the Department of Education capital improvement funding.
Following multiple solutions proffered by senators and the public, today, Governor Calvo sent a letter of compromise to Speaker Benjamin F. Cruz that he believes will address all concerns.
The letter affirms the Governor’s commitment to “reduce government spending and seek alternative revenue generating initiatives based on a 2% BPT increase effective March 1, 2018.”
It further states the Governor’s commitment to establish a Fiscal Realignment and Government Stabilization Committee to be comprised of Members of the Guam Legislature and the Governor. The Committee’s duties would be to consider reorganization and fiscal realignment, the removal of exemptions in lieu of taxes, and alternative revenue generating options.
The Department of Education’s Superintendent, Jon Fernandez, also sent a letter to Legislators imploring their support for Governor’s bill 245 as it will give DOE funding for capital improvements that are sorely needed.
“I want to strongly advocate for the 0.25% business privilege tax increase that the Governor proposed for GDOE school facilities over the coming two (2) years, which I know you support as well.” – Jon Fernandez