Governor Calvo is again encouraging residents to participate in one of the three public hearings on two bills that aim to maintain government stability.
The government currently faces approximately $67 million reduced revenue resulting from the federal Tax Cuts and Jobs Act of 2017. It federal tax law reduces corporate tax rates by about 50%, and withholding for employees also is decreased. The Office of Finance and Budget provided the estimated revenue reduction.
Both Governor Calvo and Speaker BJ Cruz have introduced a bill, both of which increase the BPT. In a letter to GovGuam employees, the differences in how the bills impact employees of line agencies are listed.
Governor Calvo states: “Speaker Cruz would like to roll back the Competitive Wage Act 2014, which was the first general salary adjustment for GovGuam in decades. I’ve made it no secret that I believe your salary increases are well deserved and I do not support repealing them. This is not an option for us. GovGuam employees contribute to our tax revenue and to the economic activity of this island. Reducing our workforce pay would do more harm to our economy than help.”
The comparison includes:
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Bill 244 (introduced by Speaker BJ Cruz) |
Bill 245 (Introduced by Gov. Calvo) |
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• Cut back salary increases resulting from the Competitive Wage Act of 2014 |
• Does not touch salaries but Governor has tasked agencies and offices to reduce cost |
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• Proposes increase of BPT from 4% to 5% |
• Proposes increase of BPT from 4% to 6% |
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• The increase would maintain gov’t stability |
• 1% of the increase maintain gov’t stability |
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• No dedicated funding source for our Guam Memorial Hospital and Department of Education. |
• .75% of the BPT increase to the hospital. • .25% would go to DOE |
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• Both the salary cut back ends on March 5, 2019 and the BPT ends on January 2020 |
• No salary cut back and BPT ends within 24 months of enactment |
Additionally, Speaker Cruz’s bill calls for a reduction of salaries for two branches, the Legislature and Adelup. The salary cuts do not impact the Judiciary and autonomous agencies.
The public hearings for Bills 244 and 245 are scheduled for tomorrow. There are three scheduled times: 9:30 a.m., 2 p.m., and 6 p.m.