Gov. Eddie Calvo has proposed a nearly $900 million government of Guam budget for fiscal year 2018.
The budget predicts a 5 percent growth in revenues for the following fiscal year. About $125 million is set aside for tax refunds, about $14 million is reserved to pay off the deficit and about $23 million is for general fund set asides.
The budget also would provide for a subsidy for the Guam Memorial Hospital, with $11.6 million in additional funding for GMH.
"At the same time we've got to look at the money owed to us by court orders," Calvo said.
Section 30 funds
There's about $40 million owed to Guam in Section 30 funding, the governor said. The administration will exercise whatever option it can to obtain this funding, Calvo added.
Section 30 funds are income taxes withheld from Guam-based military personnel and federal government workers' pay checks, and this money is handed over to the local government.
However, one of the more prominent issue facing taxpayers and retirees is the unfunded liability of the GovGuam retirement program, amounting to about $1.4 billion, Calvo said.
The revision of the program into a hybrid plan, championed by Sens. San Nicolas and Benjamin Cruz, will prove disastrous in the long term, according to Calvo. A solution he is pursuing is the inclusion of GovGuam workers into the Social Security program. Calvo said he would work with the administration of President Donald Trump and with Guam Delegate Madeleine Bordallo to accomplish this.