Pangelinan Finds Flaws In DEIS Estimate of GovGuam Revenues
Guam - The Legislature's Appropriations Committee Chairman, Senator Ben Pangelinan, says he has already found flaws in the DEIS projections of Local Government Revenues [Section 4.3.3].
In a release, Senator Pangelinan explained, “We used a simple financial ratio of General Tax Revenue to Gross Island Product that has served the government economists and bureaucrats well over the years when assessing new investment into our economy. The rule of thumb is that the government of Guam collects 10% of every new dollar invested into our economy after it multiplies through.”
General Tax Revenue in the more conservative constrained DEIS analysis show collections that are between 42 to 49% of estimated additional Gross Island Product related to the buildup. “There is something in their financial model that is causing a wide variance in the ratio but because the methodology and actual model were not disclosed in the DEIS there is no way for us to even scrutinize the estimates,” according to Pangelinan.
Local business organizations continue to lobby support for the buildup as positive because of the economic growth that will occur as a result of the Marine relocation from Okinawa. Senator pangelinan agrees that growing the economy is important but that the government of Guam must balance economic growth and protection of the environment, culture and quality of life of island residents.
Senator Pangelinan concluded “Last week I sent letters to several experts in the private sector, the University of Guam, GOVGUAM, the Government Accountability Office and the Department of Defense asking them to provide analysis of the revenue estimates to confirm our findings. The core questions that must be answered with some degree of comfort before we get to the table are the cost and future revenue collections that will result from this buildup.”
For further information, please contact the Offices of Senator ben pangelinan at 473-4236 or email at email@example.com
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