Correcting the date on the release…
“I fear that this hasty attempt to pay war reparations with the people of Guam’s money, has added yet another unfunded mandate on the backs of our people, by the very person who is their voice in Congress.”
– Governor Calvo
NEWS: Governor to Congresswoman: Lower Section 30 threshold may result in layoffs
May 12, 2017 (Hagåtña) — In a letter to Congresswoman Bordallo, the Governor says her bill, which became federal law to pay war reparations using Section 30 funds could cause layoffs. He further asks for clarification on Section 30 funds as the administration now scrambles to find a solution.
In the letter, Governor Calvo asked if the Congresswoman could clarify whether:
1. The federal government will begin taking the money this year.
2. Has she been able to find another source of funding for war claims? (She had said it would be a placeholder so as to not hold the people of Guam responsible for paying war claims to themselves.)
He also notes his concern in HOW she phrased her question to the the Department of Treasury and Office of Insular Affairs, noting she basically ASKED them to use the lower number.
He quoted the Congresswoman’s letter to the feds:
“There is concern on Guam that because the Treasury Department, working with the Office of Insular Affairs remitted additional funding for previous underpayments of Section 30 funds to the Government of Guam in fiscal year 2014, the higher threshold would be used as the baseline for deposits ino the Claims Funds. I do not believe that these additional remittances should be considered…” [emphasis added]
Speaker BJ Cruz brought the issue of the Section 30 threshold into recent conversations on the Governor’s effort to pay tax refunds faster. Speaker and Congresswoman Bordallo shared two statements with the Governor’s office and the people of Guam during that discussion:
1. The threshold for Section 30 for war claims is $68 million; in other words, any amount above $68 million will be taken by the feds and placed in a war claims fund.
2. The federal government may begin taking that money away this year — thus placing local government operations in jeopardy.

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