Money may be available by June
FOR IMMEDIATE RELEASE
March 28, 2012
Governor Eddie Baza Calvo signed the compromise bond authorizing for tax refunds into law this morning. Unfortunately, the legislature added other debts to the bond bill above the tax refunds. This means only half of what’s actually needed for refunds will be coming in.
The administration expects that by the time all taxpayers file their returns the government will owe the people about $122M in refunds. This includes $17M that became tax refund debt after the December rush. The bond by the Legislature only leaves between $50M to $60M for tax refunds. This is because the Legislature made tax refunds secondary to payments to the Retirement Fund and health insurance.
“If this is all the Legislature will give back to the people, then I suppose there are no choices left,” Governor Calvo said. “The $50M to $60M out of nearly $122M needed for tax refunds through this year is better than nothing.”
The governor also pointed out in his transmittal letter to Speaker Won Pat that the authorizations for millions in school repairs and the purchase of buses are empty promises. “You know full well that there will be no money left over in this bond for any of those projects; yet you have made an empty promise to the schoolchildren, parents, and the people of Guam — these authorizations mean nothing without the financial means to back them,” said Governor Calvo.
“While I’m grateful to the Legislature for its bipartisan support of Series B of the tax refunds bond, Bill 414 does not even come close to funding all the tax refunds for Tax Year 2011,” Governor Calvo stated. “I warned you last year when I asked you not to tinker with the full $343 million authorization I was seeking, it was critical to prioritize the payment of refunds and not to add new obligations.”
Although the bill was signed into law, it does not mean the funds will be in the bank tomorrow for dispersion. The bill signing simply initiates the lengthy bond borrowing process, which Governor Calvo and his fiscal team are working on. Governor Calvo will be going to San Francisco in late April to the bond rating agencies to pursue the Series B bond. The fiscal team hopes to have the cash in the bank by June.
Contact Troy Torres at 475-9309 or 486-8887, for more details.
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