Feb. 27, 2018
Hagatna — Speaker BJ Cruz’s amendment to increase BPT by 1% for 110 days would only have caused instability and uncertainty.
“We thank the Senators who rejected the politically-motivated amendment that Speaker Cruz presented today,” Governor Calvo stated. “We presented a bridge to get us over this fiscal crisis caused by the federal tax cuts and we were open to compromise but the proposal this morning WOULD NOT have addressed the fiscal crisis we face AND LEFT GMH IN THE DUST.”
If the amendment had passed, it would have increased taxes for 110 days and would have provided:
• Zero dollars for a Guam Memorial Hospital that is perennially $30 million short
• $10 million for a $67 million revenue shortfall
It would have fallen far short of what was needed to truly address the fiscal crisis caused by Washington D.C. The only certainty Speaker Cruz’s bill would have caused is instability and uncertainty for the next few months.
Speaker Cruz’s bill would NOT have averted the crisis. The reality of his amendment to Bill 245:
• furlough process
• 32-hour workweek
• Cash flow decrease would impact tax refunds
With the wisdom of the senators today, we remain hopeful that we can move forward with a full solution.