Supplemental request to keep government afloat through September
The government needs budget authorization to spend $36.6M more over what was appropriated for this fiscal year. This is mainly to cover shortfalls from the Fiscal Year 2011 budget passed in August last year. If not, several agencies will not be able to operate by some point in the coming months. Health, dental and life insurance benefits also will cease by mid-June if nothing is done to correct the budget deficiencies.
Acting Governor Ray Tenorio today proposed legislation needed to address the shortfalls to the Legislature. The supplemental budget will allow the administration to spend identified fund sources to cover the agency shortfalls, the remainder of the health insurance benefits, COLA class interest payments, utilities, overtime and others.
“The employees at the Department of Administration, the Bureau of Budget and Management Research and the Department of Revenue and Taxation have been working really hard to find solutions to the funding challenges presented by this supplemental funding need,” Acting Governor Tenorio said. “We don’t want to see agencies shutting down or families go without health insurance. Today we presented real and responsible solutions to get us through the fiscal year. This doesn’t solve all our problems, though. We need senators to pass the biennial budget and the bond so we can pay the people their tax refunds.”
The fiscal team identified the following fund sources:
· $15.4M overpayment to the Retirement Fund that will be used and offset (The Office of Public Accountability identified the overpayment in its assessment of the government’s liabilities)
· $1Mexcess debt service reserves from the Limited Obligation Infrastructure Improvement Bonds, 1997 Series A
· $4.3M reimbursements for the capital costs of the landfil
· $1M in unexpended balance from the Year 2010 Census contract
· $7.6M balance from the Hay appropriation
· $2.3M in additional Section 30 funds
· $600K in rebate reimbursements
· $2.3M in American Opportunity Credit funds
· $2.1M from the Autonomous Agency Collections Fund
The funding sources shall be used to pay for the following:
· $1.7M shortfall for the Department of Mental Health and Substance Abuse operations
· $4M shortfall for the Guam Fire Department operations
· $1.9M to the Department of Administration for credit card merchant fees
· $1.7M to the Department of Corrections for past-due overtime costs
· $338K to the Guam Police Department for past-due overtime costs
· $1.3M to the Department of Education for operations
· $3.3M shortfall in medical, dental and life insurance for line agency employees
· $1M for COLA class interest payments
· $1.3M shortfall in utilities costs for the line agencies
· $7.3M for GMH’s liabilities to the Retirement Fund
· $8.1M for shortfall in retirees’ medical, dental and life insurance benefits
· $4.6M for various department/program requirements and shortfalls of line agencies such as Departments of Public Works, Public Health and Social Services, Administration, Land Management, Youth Affairs and Integrated Services for Individuals with Disabilities; Bureau of Statistics and Plans; Bureau of Budget and Management Research; and the Governor’s Office
FY2011 Supplemental – Transmittal Ltr 05.04.11
FY2011 Supplemental Bill – as introduced 05.04.11
