March 23, 2018
Hagåtña — Payroll for thousands of Government of Guam employees was made today, but it came at a cost.
In the last few years, DOA has been able to reduce inherited payables surpassing 200+ days in aging down to less than 90 days. The aging of vendor payables is creeping up again. Though Bill 248 is now Public Law 34-87, the revenues won’t be realized for another two months.
Not all allotments and vendor payments were made.
“Vendor payments are impacted with each passing payday since the tax revenue reduction,” said Edward Birn, Department of Administration director.
“We’ve made it through another payroll. And with the submission of the fiscal realignment plan, we’re moving ahead with plans to unwind the calamity caused by Washington DC’s new tax policy,” Governor Calvo stated. “But we’ve got our work cut out for us. We have to catch up and get back on track with our finances, then with our bond rating agencies, and of course work on reorganization.”
The fiscal realignment plan will be submitted later today and will outline the reductions in appropriations based on the shortfall.
“The good news is that through all of this government struggle, our economy has remained strong, restaurants and stores are crowded with local, military and tourist customers; tourism has stayed strong; and H2B worker applications are being sent to U.S. CIS to help get delayed construction projects moving again,” the Governor stated. “We just have to keep moving forward.”