“The only thing we can do is cut cost if we’re not enhancing revenues.”
– Governor Calvo
NEWS: Governor meeting with AG on furloughs
Hagåtña — The Governor is consulting with the Attorney General on the details of the furlough process today.
“My team will of course abide by her opinion,” Governor Calvo stated. “With that said, if the process takes more than two weeks then it will force us to take additional drastic measures.”
The Governor signed an executive order that starts the 32-hour workweek for executive branch employees beginning next week. The savings of approximately $1 million per pay period will help stretch out our budget and buy some time as we work with the Legislature on a solution to avoid payless paydays or a government shutdown.
For months now, the Legislature and the Administration have been discussing the federal tax cuts and the impact on government services and employees.
What started out as discussions on the potential fallout are now discussions about the actual reduction in GovGuam General Fund revenues – which is the funding source for GovGuam employees’ salaries … gasoline for emergency vehicles … cost of offices and satellite offices such as the Rev&Tax at the Agana Shopping Center … tax refunds … vendor payments, etc…
The overall shortfall is $67 million, as estimated by the Legislature’s Office of Finance and Budget, for the current fiscal year. As noted by the Public Auditor, during one of several meetings on this issue, a solution should include a combination of reducing expenditures and enhancing revenues.
Although the Governor has called Senators into multiple special sessions to consider different bills proffered by senators on either side of the political aisle – Senators have yet to come to a consensus and no action has been taken.
“There have been some great ideas that have been discussed on session floor. Unfortunately, our lawmakers haven’t been able to agree on a viable solution that my team and I can execute,” Governor Calvo stated. “That brings us to our current situation. Today’s meeting with the AG will help my team and I determine what cost-cutting measures are available to me so that I can do my job of keeping this government from shutting down.”