Bordallo meets with President Obama, discusses Guam issues

MONDAY, 26 SEPTEMBER 2011 01:03 BY THERESE HART | VARIETY NEWS STAFF

GUAM Delegate Madeleine Z. Bordallo, vice chair of the Congressional Asian-Pacific American Caucus (CAPAC), met with President

President Barack Obama meets with members of the Congressional Asian-Pacific American Caucus in the Cabinet Room of the White House. Contributed photo

Barack Obama at the White House last week to discuss issues important to the Asian American and Pacific Islander community.

Federal-territorial issues were discussed with the President. Bordallo thanked Obama for his past support of Guam war claims and asked for his continued help to help pass the bill in Congress. The Obama administration continues to support Bordallo’s efforts to resolve Guam war claims. The Departments of Defense and the Interior have testified before Congress about their continued support.

However, the climate in Washington to grapple with a record high deficit and the recent talks to cut more than what is being proposed has Guam leaders questioning whether Bordallo can push forward with war reparations at this time.

“Let’s be realistic. It’s rather difficult to even try to bring it up in Congress, given what’s being discussed with regards to cuts. I haven’t given up hope, but at this point, I believe it’s something that Congress isn’t ready to deal with yet,” said Speaker Judi Won Pat.

Won Pat said she and her colleagues are certain of federal cuts which will affect Guam; cuts which Guam must be ready to handle.

“We are literally waiting to see what decisions are made in Washington regarding Guam, because whatever those decisions may be, we have to plan appropriately,” said Won Pat.

Parole

During her meetings, Bordallo also spoke about the need to extend parole authority to Guam for Chinese and Russian visitors. The White House committed to ensuring a continued dialogue with the Department of Homeland Security on the status of extending parole authority to Guam.

The delegate expressed her appreciation for these efforts and conveyed her hope that the White House will continue to provide policy direction on the importance of this initiative to DHS.

The meeting also focused on the need for tax considerations for the territories when the Obama administration is developing national economic policy.

Bordallo and the delegates recently sent a letter to Obama, requesting that he include cover over provisions for the territories in his American Jobs Act. Bordallo thanked the President for listening to the delegates’ concerns and for including cover over provisions in his bill.

“President Obama showed that he is sensitive to the needs of Guam and all Pacific Islanders,” said Bordallo.

“I made the point that our visitor industry will grow with the inclusion of Chinese and Russian visitors. I also told him that Guam’s goals are similar to those expressed by Vice President (Joe) Biden last month in China to make it easier for Chinese tourists to visit the United States. I thanked the President for including cover over provisions in the American Jobs Act and for his concern for the economies of the territories.”

Bordallo also shared with Obama: “We were disappointed that he had to cancel his scheduled visits to Guam last year and that our invitation still stands and our welcome mat is always out.”

Democrats defend budget bill, $180M bond

MONDAY, 29 AUGUST 2011 00:38 BY THERESE HART | VARIETY NEWS STAFF

SPEAKER Judi Won Pat said it’s unfortunate Governor Eddie Baza Calvo would say she and her Democratic colleagues are not paying attention to the “working poor,’ since the budget the Legislature passed includes a $180 million bond, of which $120 million will be used to pay out 2010 and prior-year tax refunds to “our residents who are suffering daily.”

The $180 million bond borrowing does not allow the governor to borrow to pay for corporate taxes.

Last week, after the Legislature passed the budget bill in a narrow 8 to 7 vote, Calvo said he would likely veto an “incomplete and disastrous budget.”

“I’d like the governor to explain exactly what he means by ‘disastrous and incomplete,’” said Won Pat, stressing the Legislature passed a fiscally responsible budget that would weather any unpredictable outcome the U.S. Congress might enact that would affect Guam in terms of federal funding for the island.

“The budget that passed was reasonable. We didn’t raise the debt ceiling, so there is a $45 million cushion that we can borrow if anything unpredictable comes out of Congress. We’re seeing what’s happening in the U.S. In January, we’ll know how we’re tracking. If the governor passes this budget, there is the opportunity for him to borrow another $160 million,” said Won Pat.

Calvo said he was concerned about the lawsuit filed against the government for unpaid tax refunds.

“Senator Pangelinan has said time and again what measure the government is making to show good faith efforts that we’re paying out the tax refunds. We as lawmakers understand our role and we will remain firm in moving this government forward with fiscal responsibility,” said Won Pat.

“There is uncertainty over what cuts the U.S. Congress will make and how it will affect us. We need to prepare for this. Cautious optimism prevailed during our budget session and I hope the governor rethinks his immediate reaction to veto this budget.”

She said Congress’ intentions for Guam will be clearer in January, and the budget bill wasn’t just about the borrowing of the bond, but a durable bill with clauses that would displease the governor.

One such provision is the $8 million insurance rebate Calvo’s SelectCare would have to pay back to the government and GovGuam employees. “By signing the bill, he is agreeing that a rebate is owed. That’s one reason why I think he’s going to veto it,” said Won Pat.

Shutdown

Won Pat said if a budget fails to pass, a shutdown in government services is possible. In reaction to those lawmakers who voted against the budget bill, Won Pat asked: “Do they want to shut down this government?”

Senator Ben Pangelinan said he didn’t know why the governor would not sign the bill into law since it includes the authority to borrow the money to pay prior-year tax refunds to individuals.

Last week, the governor targeted Won Pat, Vice Speaker Benjamin J.F. Cruz, Senator Rory Respicio and Pangelinan, saying they were keeping tax refunds from the people.

“The Legislature, led by Speaker Won Pat, Vice Speaker Cruz, Majority Leader Respicio and Budget Chairman Pangelinan, unfortunately passed a budget that will leave Guam further in debt, and keep hundreds of millions of dollars of your money away from you,” said Calvo’s press secretary, Troy Torres.

Torres said the governor will continue fighting for all the tax refunds for every person owed a refund.

“We cannot believe Sens. Won Pat, Cruz, Respicio and Pangelinan can just ignore people who are suffering, struggling and begging for their own money. The most disturbing part about this is the government has not been able to pay tax refunds because of the budget deficits the past three years these senators created. Yet, when they had a chance to right this wrong, they just shut people out and threw the cries and pleas of the working poor to the side,” said Torres.

“The $120 million bond would pay only 30 percent of the tax refunds owed. What about everyone else,” according to Torres.

Won Pat said the $120 million from the bond borrowing plus the $105 million in the budget bill, both for tax refunds, is enough to pay 2010 and prior-year tax refunds to Guam’s working families.

Sen. Dennis Rodriguez Jr. was the only Democrat who voted against substituted Bill 145, along with the six Republican lawmakers: Senators Tony Ada, Frank Blas Jr., Chris Duenas, Sam Mabini, Mana Silva Taijeron and Aline Yamashita.
“The governor cannot, in good conscience, enact a law that will leave people behind. He will likely veto this disastrous budget proposal,” said Torres.

The Chinese Chamber of Commerce last week joined Guam’s mayors and vice mayors in endorsing Calvo’s plan to borrow $344 million.

The Chamber’s executive board members are expected to formally sign an endorsement at their board meeting this week, according to a press release from the Governor’s Office.

The budget bill was engrossed last Friday and will be transmitted to the governor.

Calvo: Holiday's cost justified

BY BRETT KELMAN • PACIFIC DAILY NEWS • JANUARY 18, 2011

Guam's connection to the beliefs and teachings of Martin Luther King Jr. is so strong it warrants a GovGuam holiday, despite the financial burden on a cash-strapped GovGuam, Gov. Eddie Calvo said yesterday.

Yesterday was the second year in a row the island has celebrated King's legacy with a GovGuam holiday.

"I think the symbolism for civil rights is so appropriate in Guam -- especially as we deal with this impending military buildup, especially as we deal with our political status as a territory -- so that is why I believe it is (appropriate,)" Calvo said.

According to Pacific Daily News files, each GovGuam holiday costs at least $450,000 of taxpayer money, plus additional spending by autonomous agencies.

Since becoming governor two weeks ago, Calvo has worked to steady a cash-strapped GovGuam, which he has said is running deep in the red and will shut down without severe cuts.

Calvo said the government's financial struggles haven't tempered his passion for the holiday and the message behind it.

"As far as I am concerned, it's apropos that this holiday be observed in Guam, especially in light of our social-political condition. We are an unincorporated territory, and we do not have the rights that Martin Luther King Jr. was fighting for," Calvo said.

Reinstated

Martin Luther King Jr. Day was a GovGuam holiday until 2002, when lawmakers cut six holidays to save dwindling government funds. It was re-instated in 2008. Five other holidays -- Presidents Day, Discovery Day, Good Friday, Columbus Day and Election Day -- have remained revoked.

Sen. Judith Guthertz first introduced the bill to reinstate Martin Luther King Jr. Day in January 2007. It took lawmakers more than a year to pass it. It was then vetoed by former Gov. Felix Camacho. The veto was then overridden by 11 senators.

Calvo and Lt. Gov. Ray Tenorio, both of whom were senators at the time, supported the bill and the override.

Cost Concern

Former Sen. James Espaldon was one of the few lawmakers who voted against the reinstatement of the holiday, and if he had to do it again, he said he would do the same.

Espaldon said the decision in 2008 was "tough," but there are simply too many other places where the government needs the money.

In fact, King's movement could be better remembered during a workday, Espaldon said, when students could learn lessons about the civil rights movement and employees could reflect on equality.

"I know on days off like this, we don't always reflect on the purpose," Espaldon said. "Sometimes we just look at it as a day off, to work around the house or watch football. ... It's not a commemoration."

In his veto letter to the Legislature, Camacho also argued the holiday was too expensive. Guam could celebrate civil rights without a holiday, the former governor wrote.

"While I admire and applaud the sacrifices and strides that Dr. Martin Luther King, Jr. accomplished in the struggle for equality, Bill No. 25 was passed by the Guam Legislature with no additional appropriation to cover the increased cost this government would incur," Camacho wrote in his veto message.

Important

During a holiday celebration yesterday, Guthertz said Camacho was wrong to think the holiday was too expensive when it was clearly so important to many ethnic groups in the region.

"When I grew up on Guam, it was almost impossible for anyone on Guam to go to law school," Guthertz said. "It was impossible for anyone on Guam to go to medical school, or dental school, or architectural school, or even become an officer in the United States military. The sacrifices of Dr. King ... changed lives on Guam for the better, and that's why we are recognizing him today."

Guthertz spoke at an AmeriCorps event at the Agana Shopping Center yesterday, which united community service groups from around the island to celebrate King's teachings.

More than a hundred volunteers from the groups, mostly consisting of young people, packed into the center's plaza for speeches and Chamorro cultural presentations. Informational booths, sponsored by each of the different AmeriCorps branches, encircled the event, spreading messages of selfless service, equality and empathy.

At the beginning of the event, AmeriCorps Director George Salas asked the volunteers to stand up so they could be congratulated for their willingness to help others.

Their compassion could change the community, he said, and inspire others to do the same.

"These are the people that will make things happen," Salas said.

CNMI government faces stalemate

by Bob Coldeen, for KUAM News

Guam - Four days past deadline, lawmakers in the CNMI still have not agreed on a budget. And as a result, the government shutdown continues.

Still no solution to the budget crisis. The house and senate convened over the weekend. Saturday evening house members passed yet another version of a budget bill...and the senate immediately amended that version. Now two bills sit before the house. But today....no action was taken. "I'm not at liberty at this time to tell the public what we're going to do because we just started working on it," said House Speaker Froilan Tenorio.

As the bill remains pending in the house, 1,400 government employees are barred from going to work. "Why not act today? Each day means another government shutdown. I know that...that's why I told committee members I don't care if you have to work overnight you have to work on this."

Lawmakers say they believed both parties reached a breakthrough agreement - until the governor got involved. Diego Benavente, House Minority Leader, said, "When we were told there was an agreement we were all excited, by 2 o'clock we were told well the gov didn't like that agreement so that agreement was off the table." And representative Joe Guerrero said, "It makes you almost think that this agreement that somebody doesn't want an agreement between the house and the senate intentionally. So that we will continue to have a shutdown on Monday. So the administration can save more money."

And lawmakers say the governor's meddling into their affairs infringes on the power of the Legislative Branch.

The governor's administration denies they have control over the house majority. Angel Demapan, Governor's Press Secretary, said, "That's pure speculation, the majority of the house are experienced leaders, former governor, former lawmakers, they have minds of their own. The administration always offers their advice and recommendations but at the end of the day it's the lawmakers themselves who will make that conscientious decision for the people."

The first government shutdown in the commonwealth's history will carry on until a budget is passed into law. "I think the speaker should consider the urgency of this matter by not acting on it...gives the impression that there's an intentional delay," said Senator Pete Reyes.Senate President Paul Manglona added, "If the house doesn't know this is serious, lets go out to the community people are screaming at us. They don't care...get to work do your job and pass a budget."

566 Million for Guam from DOD

Guam gets $566M under ‘11 DoD budget .
Friday, 21 May 2010 06:14
by Mar-Vic Cagurangan
Marianas Variety News Staff

THE U.S. House Armed Services Committee has unanimously approved its version of the 2011 defense spending legislation that appropriates $566 million for 12 new military projects on Guam, Congresswoman Madeleine Z. Bordallo announced yesterday.
The bill also authorizes the Department of Defense to transfer operations and maintenance funding to Guam to bankroll local infrastructure projects to support the military expansion on island. If the appropriations measure is signed into law, the defense department would be authorized to transfer up to $500 million through fiscal year 2017.

“The bill will now move for full consideration on the floor of the House of Representatives next week,” according to a press release from Bordallo’s office.

The proposed allotment for Guam construction is a component of the $708 billion budget request for the Department of Defense’s ongoing contingency operations overseas outlined in the National Defense Authorization Act for Fiscal Year 2011, or H.R. 5136.

“The House Armed Services Committee renewed its commitment to ensuring that the military buildup on Guam is done right,” said Bordallo, who has sponsored several provisions that seek to address Guam’s infrastructure needs to support a population surge.

Another salient feature of the bill provides for the transfer control of Navy’s water, including Fena Reservoir, and wastewater system to the Guam Waterworks Authority.

“This authority will help to eliminate unnecessary redundancies and create economies of scales in our current water and wastewater system that could ultimately improve service across the island,” Bordallo said.

“More importantly, while GWA will have to ultimately pay a fair market value to convey the Navy’s system the total cost can be offset by the cost of unreimbursed Compact-Impact costs to Guam,” she added.

The water provision in the bill, Bordallo said, serves as the cue to start serious discussions over water issues and the possibility of an eventual transfer of Navy water assets to GWA.
Other highlights of the bill are as follows:

• Extends authority to provide travel and transportation allowances for inactive duty training outside of normal commuting distances for members of the Reserve Component. The authority directly supports the training and readiness requirements of the Guam National Guard and is critical for their recruiting of service members from locations outside of Guam;

• Requires the Secretary of Interior to prepare a report on civilian infrastructure needs for Guam. The report would detail the infrastructure improvements needed to directly and indirectly support and sustain the military build-up as well as outline potential funding sources for such improvements from other federal sources;

• Secured additional $635,000 in funding for the Navy Sea Cadet Corps to fully meet their funding requirements. The additional funding will help to lower the out-of-pocket costs for cadets across the United States including on Guam;

• Requires a report from the Secretary of Navy by December 31, 2010 on the methods that the Secretary will use to ensure common standards for workforce housing and medical care. The report is in response to concerns regarding the lack of a coherent and comprehensive framework from the federal government on their expectation of contractors regarding workforce housing and medical needs requirements. The report indicates Congressional preference to ensure appropriate oversight of these matters to avoid unnecessary negative impacts on the local community;

• The Comptroller General will review and assess the proposed design for the replacement Naval Hospital on Guam to ensure the size and scope of the new facility meets anticipated future mission requirements and increased retiree and veteran populations on Guam;
• Requires the Secretary of Defense to study the feasibility of establishing TRICARE Prime option for TRICARE beneficiaries in the territories including Guam. The report is due within 6 months of passage of the bill;
• Maintain $318 million for funding procurement of 8 C-27J “Joint Cargo Aircraft” as proposed in the President’s Budget; and
• Added $700 million for the National Guard and Reserve Equipment Account to improve readiness and preparedness for future missions. The increased funding for Guard and Reserve equipment begins to address nearly $42.5 billion in equipment shortages across all the Reserve Components.
box (if there is space)

Fiscal Year 2011 Military Construction Authorizations

Service Project Cost
Air Force Andersen AFB – Guam Strike Ops Group & Tanker Task Force $9,100,000
Air Force Andersen AFB – Guam Strike South Ramp Utilities, Phase 1 $12,200,000
Air Force Andersen AFB – PRTC – Combat Communications Operations Facility $9,200,000
Air Force Andersen AFB – PRTC – Red Horse HDQ/Engineering Facility $8,000,000
Air Force Andersen AFB – PRTC – Commando Warrior Open Bay Student Barracks $11,800,000
Army National Guard Combined Support Maintenance Ship Ph1 $19,000,000
Army National Guard Readiness Center (Assembly Hall/SRP) $778,000
Navy Marine Aviation - AAFB North Ramp Improvements Phase 1, Increment 2 $93,588,000
Navy Marine Aviation - AAFB North Ramp Utilities Phase 1, Increment 2 $79,350,000
Navy Apra Harbor Wharves Improvement Phase 1 $40,000,000
Navy Defense Access Road Improvements $66,730,000
Navy Finegayan Site Prep and Utilities $147,210,000
Defense Health Programs Hospital Replacement Increment 2 $70,000,000
Grand Total $566,956,000

Senator Pangelinan Agrees that Budget Appears Conservative

Senator Pangelinan Agrees that Budget Appears Conservative

Guam - Senator Ben Pangelinan says he's looked at the proposed fiscal year 2011 budget that the administration released just yesterday and compared it to current revenue projections.

He is still hopeful that they will hit their target for this fiscal year. The senator says he will remain cautious when counting potential revenues that could result from military construction and spending. Pangelinan says that the budget seems conservative and "Is not a pie in the sky budget" The senator says they will continue looking at the budget over the days and weeks to come and will pay special attention to developments with the military buildup and how they might affect revenues.

Written by :
Clynt Ridgell

Japan to allot buildup costs in its fiscal budget

Japan to allot buildup costs in its fiscal budget

Pacific Daily News • December 9, 2009

Japan will earmark in its fiscal 2010 budget expenses related to the relocation of a U.S. military airfield in Okinawa and the transfer of 8,000 Marines to Guam, an Agence France Presse report stated, citing Japan Defense Minister Toshimi Kitazawa.

"Prime Minister (Yukio Hatoyama) has approved the allocation," which is required under a 2006 bilateral accord on the reconfiguration of U.S. forces, the minister said in the AFP report. The move suggests Tokyo is attempting to assuage Washington's concerns over the base relocation, which has grown into a bilateral row.

Kitazawa's announcement comes a day before his trip to Guam. He was scheduled to arrive last night.

The Japan-U.S. pact stipulates the U.S. Marine Corps Futenma Air Station in a crowded residential area of Ginowan will be moved to the less densely populated city of Nago in Okinawa by 2014.

But Hatoyama pledged during election campaigning before his Democratic Party of Japan came to power in September that he will seek to move the Futenma facility out of Okinawa.

The premier has recently indicated the government may not draw a conclusion on where to relocate the Futenma base until next year, the AFP report stated. He said Monday the country would inform the United States of its policy by Dec. 18, when he may meet with U.S. President Barack Obama in Copenhagen.

In a press conference, Kitazawa said about 50 billion yen will be earmarked for the Marines' transfer to Guam in Japan's fiscal 2010 budget, and that he will visit the island to inspect Andersen Air Force Base and other military installations.

The defense chief said more than 30 billion yen has already been earmarked in the fiscal 2009 budget for the Marines' transfer to Guam and that his three-day visit to the Pacific island is intended to examine how the project to build new accommodation facilities has been getting on there, the report stated.

Plan to Shift Marines to Guam Adrift / U.S. Senate Bill Cuts 70% of Funding‏

Plan to Shift Marines to Guam Adrift / U.S. Senate Bill Cuts 70% of Funding‏

Satoshi Ogawa / Yomiuri Shimbun Correspondent


WASHINGTON--In an apparent swipe at the Japanese government over its dithering on the issue of relocating a U.S. military airfield in Okinawa Prefecture, the U.S. Senate on Tuesday voted to slash funding for a plan to transfer 8,000 U.S. marines in the prefecture to Guam.


A plenary session of the Senate passed a fiscal 2010 budget bill related to the construction of military installations that cut 211 million dollars, or about 70 percent, from the 300 million dollars sought by the administration of President Barack Obama to fund the planned transfer of the marines to the U.S. territory.


The transfer of the marines to Guam is one of the key goals of the U.S. military in Japan, along with the relocation of the functions of the U.S. Marine Corps' Futenma Air Station in Ginowan to Nago, both in Okinawa Prefecture.


The U.S. Congress was in favor of the 300 million dollars allocation for the transfer of the marines in late October when it approved the National Defense Authorization Bill, which stipulates the overall framework of the budget. The House of Representatives passed a bill approving the entire amount.


The Senate's action is believed to represent its displeasure with the fact that the Japanese government has repeatedly changed course on the issue of Futenma's relocation, and that there has been no resolution of the issue.


U.S. Defense Secretary Robert Gates had warned the Japanese government that Congress would not allow the allocation of funds to move the marines should the planned relocation of Futenma stall.


A conference committee of both houses is expected to produce a final, unified version of the bill by the middle of December. The adjustments made by this committee will be a focal point in the days to come.


The White House already has sent a letter to the Senate, saying the massive budget cut could adversely affect the Japan-U.S. agreement concluded in February 2009 regarding the relocation of the marines. The White House is expected to work to restore the funding in the final version of the bill.


===


Time running out


The passing of the bill means there is a real danger that the Japanese government may not be able to reduce the heavy burden Okinawa Prefecture bears in hosting U.S. military facilities if it does not reach a decision on the issue of relocating Futenma within the year.

A U.S. expert on Japan said the Senate appears determined to postpone projects with an uncertain outlook, given the perilous financial situation of the United States due to such factors as the cost of the war in Afghanistan and economic stimulus measures.


The Japanese government hopes the U.S. administration can convince Congress to approve the funding of the troop transfer, but there is increasing dissatisfaction on the U.S. side toward the administration of Prime Minister Yukio Hatoyama, which continues to be indecisive on Futenma despite strong signals from Washington that the U.S. administration wants an early settlement of the issue.
(Nov. 19, 2009)

http://www.yomiuri.co.jp/dy/world/20091119TDY01303.htm

Budget may cover part of Futenma accord

Budget may cover part of Futenma accord

Thursday, Nov. 26, 2009
Kyodo News

The government may allocate funds for the relocation of a U.S. Marine base in the fiscal 2010 national budget before finalizing its stance on where the base should eventually be relocated, a high-ranking government official said Wednesday.

The possible budgeting for a new facility that would replace the U.S. Marine Corps Air Station Futenma in Okinawa reflects Tokyo's concerns that the United States may perceive Japan as having reneged on the bilateral accord stipulating the relocation.

"The budget and the conclusion on a relocation facility are separate issues," the official said on condition of anonymity.

The government plans to compile by year's end the budget for the new fiscal year starting in April.

Chief Cabinet Secretary Hirofumi Hirano said Wednesday the government will decide whether to allocate funds for the replacement facility, which, under the bilateral accord, would be built in Nago, Okinawa, after deliberating the issue at a ministerial committee consisting of the leaders of the three coalition parties.

"The allocation in the budget for the next fiscal year will be decided after policies are set at the ministerial committee on basic policy among the three parties," Hirano said at a news conference.

Hirano left open the possibility that the government may do the allocation on a temporary basis, given that Prime Minister Yukio Hatoyama has yet to make a final decision on the relocation.

"We have yet to decide what kind of political judgment we should make," Hirano said.

The revisiting of the proposed relocation under the 2006 bilateral accord has strained Japan-U.S. relations, with Hatoyama entertaining the idea of moving the base out of Okinawa or out of the country.

Washington wants Tokyo to stick to the accord, under which the Futenma base in Ginowan will be moved to a new airstrip to be built in Nago by 2014, while moving 8,000 marines to Guam once the new base is operational, as part of the realignment of U.S. forces in Japan at that time.

The Defense Ministry has requested about ¥89 billion for the cost of land reclamation in Nago and transferring marines from Okinawa to Guam in accordance with the accord.

U.S. Senate cuts fund for marines' Guam move

U.S. Senate cuts fund for marines' Guam move

Satoshi Ogawa / Yomiuri Shimbun Correspondent

WASHINGTON--The U.S. Senate has voted to slash 211 million dollars that the administration of President Barack Obama sought to fund the planned relocation of 8,000 marines from Okinawa Prefecture to Guam, it was learned Thursday.

The Senate action to cut about 70 percent of the envisaged 300 million dollars came in the process of deliberating fiscal 2010 budget bills relating to the construction of the new U.S. military installations.

Earlier when approving the White House-submitted National Defense Authorization Bill in late October, the U.S. Congress was in favor of the 300 million dollars budgetary appropriations for the transfer plans of the marines.

In the wake of the Senate vote for the major cutbacks on the expenditure for moving the marines from Okinawa Prefecture to Guam, the White House sent a letter Thursday to the Senate, saying a budget cut of this scale could have "harmful effects" on the Japan-U.S. agreement in February 2009 on the relocation of the marines.

The budgetary issue involving the planned move of the marines was one of the major points U.S. Defense Secretary Robert Gates referred to in talks with his Japanese counterpart, Toshimi Kitazawa, when Gates visited Japan in October.

Gates consulted with Kitazawa on relocating the functions of the U.S. Marine Corps' Futenma Air Station from Ginowan, southern Okinawa Prefecture, to Camp Schwab in Nago in the northeastern part of the prefecture. Gates in the talks was quoted as warning that the U.S. Congress would act to negate budget expenses for plans to move the marines from the prefecture to Guam should the planned relocation of Futenma be hampered.

It is possible that military installation-related budget bills could be modified through the Senate's consultations with the House of Representatives.

A major factor behind the Senate's action this time is the fact that the U.S. Congress is displeased with the indecisiveness of Prime Minister Yukio Hatoyama's administration regarding the relocation of Futenma Air Station, and has become wary of approving budgetary appropriations for the relocation of marines to Guam. Washington has said settling the Futenma issue should be a prerequisite for moving the marines from Okinawa Prefecture to the island in the western Pacific.

===

Kanagawa gov. backs base deal

WASHINGTON (Kyodo)--Kanagawa Gov. Shigefumi Matsuzawa threw his support Thursday behind an existing deal between Japan and the United States that would relocate a U.S. airfield within Okinawa Prefecture.

Matsuzawa signaled the stance at a symposium in Washington, saying the current plan to relocate the U.S. Marines Corps' Futenma Air Station to Nago from downtown Ginowan by 2014 is the best possible one.

"If the Futenma relocation issue becomes complicated and protracted further, the whole package of plans to realign U.S. forces in Japan will be delayed," he said.

(Nov. 7, 2009)

U.S. Senate cuts budget for moving Marines from Okinawa to Guam by 70%

U.S. Senate cuts budget for moving Marines from Okinawa to Guam by 70%

Nov 6 02:11 PM US/Eastern

WASHINGTON, Nov. 6 (Kyodo) - (AP) - The U.S. Senate has cut spending earmarked in a fiscal 2010 budget bill for the relocation of 8,000 Marines from Okinawa to Guam by 70 percent, congressional sources said Friday.

The sharp cut from about $300 million earmarked for the transfer of the Marines comes at a time when the new Japanese government led by Prime Minister Yukio Hatoyama has been unable to reach a conclusion on the issue of relocating the U.S. Marine Corps' Futemma Air Station.

The transfer of the Marines to Guam is closely linked with the relocation of the Futemma base.

In May 2006, Japan and the United States agreed to move the heliport functions of the Futemma Air Station located in downtown Ginowan, Okinawa Prefecture, to a less densely populated area in Nago, northern Okinawa, by 2014. The two countries also agreed at the time on the transfer of 8,000 Marines from Okinawa to Guam.

The United States has been pressing Japan to implement the relocation of the Futemma base as agreed in 2006, but Hatoyama is seeking to move the airfield out of Okinawa or even out of Japan.

$65 Million in New Revenue for Guam

$65M in new revenue: Bill aims to spend $540M in fiscal 2010
By Brett Kelman • Pacific Daily News • August 11, 2009

Buildup construction and federal economic stimulus funding could generate up to $65 million in new revenue for the government of Guam next fiscal year, Office of Finance and Budget Director Chris Budasi told senators yesterday.

Of that possible $65 million, a "conservative" budget proposal being reviewed by lawmakers would result in spending only $30 million, Budasi added.

The spillover will be used to shrink GovGuam's deficit, he said.

For every new dollar injected into Guam next fiscal year, GovGuam expects to make a dime, Budasi said.

Senators met to begin discussions about how much money GovGuam expects to receive and spend next year. The revised budget bill would spend about $540 million of

General Fund money to run the government and $101 million to pay tax refunds.
The General Fund spending allocated in this year's budget was about $20 million less than the proposed fiscal 2010 budget bill.

Budasi, who helped propose the budget bill with Democratic Sen. Ben Pangelinan's finance committee, said new revenue streams will be created by the coming military buildup and President Obama's plan to invigorate the economy by pouring money into local governments.

The coming military buildup will bring about 8,000 Marines, their 9,000 dependents and as many as 10,000 skilled laborers to Guam over the next few years. An unprecedented level of construction is needed to ready the island for its new residents -- and whoever does that construction must pay taxes.

Budasi cited the new Naval Hospital, which will be rebuilt over the next few years so it can accommodate Guam's growing military population, as an example of a project that would generate revenue for GovGuam.

"It's a $450 million project that we believe is going to be broken up over the next four fiscal years. Some of the activity is going to hit in this fiscal year then in subsequent years," he said. "We cut that $450 million number up, and we apply our adjustment to it for how much of that money we think is going to stay in the economy. ... And then that is the number that we believe is activity that will generate additional tax revenue."

Budasi said another source of new revenue are federal economic stimulus dollars Guam will receive shortly. Gov. Felix Camacho submitted an application last week for more than $108 million in economic stimulus projects.

Most of that money must be spent in the next few years, and a lot of the funding will be spent on repairs or construction at local schools or public projects. Whoever does that work must pay taxes too, generating revenue, Budasi said.

Revenues questioned
Republican Sen. Eddie Calvo, a former chairman of the legislative committee on finance, questioned the estimated revenue increases in the bill.

Calvo has announced he is running for governor in 2010 and, if he wins, he could inherit the budget the Legislature debated yesterday.

Calvo questioned if Pangelinan's revenue estimate was too high or based on unverified numbers. Pangelinan said the revenue estimates were based on the government's actual cash collection.

Republican Sen. Ray Tenorio, who's running with Calvo, worried Pangelinan's committee hadn't considered that GovGuam may have less money this year than planned. According to an estimate from the Bureau of Budget and Management Research, GovGuam will generate about $9 million less this fiscal year than had been projected.

Pangelinan said his committee had already factored that into the fiscal 2010 numbers.
Both Calvo and Tenorio asked Pangelinan to call some of Guam's government finance experts to review and validate the revenue projections presented by Budasi. Democratic Sen. Rory Respicio objected to the experts being called.

Respicio said he felt that every time the senators called those experts to review a proposed budget, revenues "magically" matched whatever GovGuam needed to spend. Instead, Respicio felt the Legislature should move ahead with the revenues presented by Budasi.

Tenorio said it was "unfathomable" that any senator would object to financial experts being called to review a budget proposal. Tenorio and Respicio left the floor to argue about the issue.

Those experts didn't take the floor yesterday, but may be brought in today. Session resumes at 9 a.m.

Tourism
Tourism, which is traditionally one of Guam's largest revenue sources, isn't expected to change much next fiscal year, according to Budasi's budget proposal presentation.

Budasi said the number of tourists next year will hopefully hold steady, but each tourist is expected to spend a little less while they are here, based on Guam Visitors Bureau estimates from June.

"We ran the numbers out and it looks like about a $7 million decrease to the economy," he said.

A GVB report released last week showed a 37 percent drop in tourist arrivals in June, partially because of a rocky economy and fears about the H1N1 influenza pandemic, but GVB General Manager Gerry Perez said the worst was probably over.

Perez said Budasi's estimate for the Legislature was a "fair representation" of what Guam's tourism numbers for next year may be, and because the future is never certain, it helps to be a little conservative.

"Based on everything we know, we expect there to be a slight improvement for the next fiscal year," he said. "Now keep in mind that any catastrophic thing could happen as well. We never expected H1N1."

Education
The proposed budget discussed by senators yesterday would appropriate less money to the Department of Education than last fiscal year, and far less than school system leaders requested.

The department, formerly the Guam Public School System, almost always gets the largest chunk of GovGuam's budget, but rarely gets as much funding as requested.
If passed as is, the budget bill would appropriate about $183 million to the department. A budget request approved by the Guam Education Policy Board in March asks for $263 million.

Last year, the school system requested $263 million, but received $189 million. Guam Education Policy Board Chairman Joe San Agustin has said repeatedly that the lack of full funding is responsible for many of the school system's shortcomings.

GovGuam Found to Be in Civil Contempt

GovGuam found to be in civil contempt
By Mindy Aguon
Published Mar 20, 2009
KUAM News

Despite the Government of Guam's contention that Public Law 30-1 was a viable solution, District Court Chief Judge Frances Tydingco-Gatewood in a 16-page decision shot down every argument presented by the government. Not only did she hold the government in civil contempt and order the immediate payment of nearly $4 million by Monday, but the judge admonished lawmakers for passing legislation that she deemed unconstitutional.

It's clear in the chief judge's decision that the she wasn't buying GovGuam's argument that existing Guam policy was the answer to closing the dump and opening a new landfill. In fact, the judge contends lawmakers who voted for its passage violated their oath of office. Her order requires weekly one million dollar payments and compliance by the government otherwise stiff monetary penalties will be imposed.

Saying the court and the people of Guam have been more than patient in expecting Guam's leaders to jointly arrive at a solution to the Ordot Dump crisis, Tydingco-Gatewood made it clear Friday that inaction and obstacles will no longer be tolerated. She further reiterated her position by finding the government of Guam in civil contempt. Saying the government met both thresholds to be held in contempt, the judge first found that the government disobeyed a specific court order she handed down on February 13, mandating weekly cash payments beginning March 1.

Tydingco-Gatewood noted that the order could not be more specific and definite, writing, "It unequivocally told the government what it was to do, and when it was to do it. No reasonable person or entity could be confused as to what was required." While the government maintained that Public Law 30-1 represented its good faith effort to find a viable alternative to the weekly payment, the chief judge found that despite Governor Felix Camacho's cooperation through the introduction of Bill 51 and specific funding mechanisms, the legislature made "radical amendments" and "Cannot imagine how PL 30-1 could qualify as a reasonable step taken in compliance with the court's February 13 2009 order."

Senator B.J. Cruz introduced Section 6 of the public law prohibiting the government from making any payments for consent decree-related projects unless first receiving approval from the Guam Legislature. It's this particular section the judge says was clearly enacted in direct contravention of her order and it's this section that she declared null and void under the Supremacy Clause of the U.S. Constitution.

Tydingco-Gatewood added that every lawmaker who supported the enactment of Section 6 violated his or her oath of office, saying, "...not only have our island's officials wasted time and money by enacting patently unconstitutional legislation designed to frustrate compliance with a valid court order effecting federal law, they have 'warred against the Constitution', thereby violating their oath of office."

She also found that the government's force majeure argument was not only unfounded and frivolous but she warned that future attempts to use that argument would be cause for sanctions.

After finding the government in civil contempt the court ordered the government to immediately turn over the $3.9 million that has been set aside by the Camacho Administration by noon on Monday, March 23. The judge noted that the government may purge its contempt and avoid the actual payment of the coercive sanction by immediately coming into compliance reiterating the suggestion of using Section 30-backed revenue bonds. She even referred to the government's consultants that pointed out flaws in Public Law 30-1 that created uncertainties for the issuance of financing for consent decree projects.

Should the government fail to deposit the money on Monday, the court will immediately impose daily civil contempt sanctions beginning at $10,000 and doubling each day, up to a daily limit of $250,000. If no payment is made by April 1, the sanctions will accrue at a quarter-million dollars per day until the government comes into full compliance.

With a little more than two years of airspace left at the dump, the court is hopeful today's order will be the catalyst for officials to take action in compliance with the consent decree.

Voicing her own response to the order, Senator Judi Guthertz wrote, "I am disappointed in the District Court Judge's ruling. I am studying the ruling and I believe the repercussions on our community will be severe. I believe that the judge is not being reasonable and I believe the Legislature should consider whether it should challenge the judge’s interpretation of the Supremacy Clause.” As for acting speaker Tom Ada, he reacted by saying he was disappointed because he felt the Legislature provided viable options in the Public Law 30-1, however he understands the reality is those options may not be available as soon as the court may have wanted them. Ada added he is focusing his attention on how the million dollar weekly payments will affect the people of Guam.

GovGuam Can't Afford $1,000,000 a Week for New Landfill

Cruz: We can't trim:
Camacho weighs cuts to pay for landfill
By Agnes Donato
Pacific Daily News
January 16, 2009

Acting Speaker Benjamin J. Cruz yesterday rejected a suggestion for the government to rein in spending so it can raise money for the dump closure and a new landfill.

According to Cruz, a cost-cutting plan isn't an option because the government of Guam is insufficiently funded as it is.

"Where do you want to start making the cuts? The police department? The last budget we passed is not even enough to run the government. We have not paid tax refunds in 15 years," said Cruz.

The administration of Gov. Felix Camacho said it is looking into the possibility of cuts.

"Austerity measures have always been important, and key members of our fiscal team are working to identify different options and their respective impacts," governor's spokesman Shawn Gumataotao said.

Time running out
Time is running out for GovGuam to close Ordot dump and open a new landfill. The solid waste receiver in a report Wednesday said the dump will be full in two and a half years, barely five months after the new landfill is scheduled to open. The receiver said GovGuam must pay $1 million a week, beginning in March, to finance the project.

Cruz said it would be impossible to come up with $52 million a year. The amount represents about 10 percent of GovGuam's budget for fiscal 2009.

"We're not like the federal government that has plenty of money. They can print money anytime they want to because they have credit to back it up. The government of Guam does not have that ability. GBB has to understand that," said Cruz, referring to solid waste receiver Gershman, Brickner & Bratton.

Cruz said he is glad the court recognizes the government's financial problems and is now willing to entertain alternative means of funding the landfill.

District Court of Guam Chief Judge Frances Tydingco-Gatewood has given the administration a week to respond to the receiver's demand and to present an alternative funding plan that GovGuam could afford.

Court order
But Cruz lashed out at the receiver for insisting that the government pay $993,700 a week, beginning in March, to replenish the initial $20 million deposit Gov. Felix Camacho made under court order earlier this month. Cruz said the demand is "unreasonable."

The acting speaker also said lawmakers shouldn't be blamed because they failed to pass the $160 million bond bill that Camacho submitted to the last Legislature. Even if the bill went through, he said, GovGuam would not be able to float the bond because of the global economic crisis.

"Even if we wanted to, we couldn't float the bond today. Almost nobody can float bonds. GBB has to understand that," he said.

Cruz added that the terms of the government's existing loans prohibit GovGuam from floating any further bonds.

GovGuam has three outstanding loans with Bank of Guam: a 2002 loan with an outstanding balance of $5 million, a 2008 loan with a balance of $13 million, and the $20 million entered on Jan. 2, 2009, to pay for the landfill deposit. Under the terms of the 2009 loan, the government cannot float a similar bond until these loans are paid.

Tough Times

Tough times: military expansion budget tight
By Michele Catahay
Published Dec 21, 2008
KUAM

Funding for the military buildup continues to look dim, according to Civilian Military Task Force member Tony Lamorena. The former Guam senator says that despite Guam's 2010 request for funding, there's been no response from the feds.

Lamorena told KUAM News, "Obviously we're not too happy about idea that the budget we submitted has yet to be entertained. But the reality is that a lot of the things we submitted in the 2010 budget are specifically to meet the demands of the military buildup. There's substantial amount of money for the port, DPW, and for various agencies that need to beef up their infrastructure prior to the military beginning the construction. We're still pushing that the 2010 budget we submitted will be entertained, but as governor stated he is disappointed by the lack of interest or movement by the federal government."

CMTF members are now working on developing a five-year budget request to be submitted to the federal government's Office of Management and Budget.

UOG May Have to Cut Programs

UOG may have to cut programs
By Brett Kelman
Pacific Daily News
October 14, 2008

Yesterday, University of Guam associate professor of nursing Kathryn Wood said her department had no choice but to grow in the near future. The coming military buildup will increase Guam's need for nurses and the UOG faculty must increase to cope.

"The nursing program is in critical condition and that is not a cliché. It's the truth," she said.

Wood spoke out yesterday at a UOG faculty meeting led by President Robert Underwood.

On Friday, Underwood announced that the Legislature didn't fund "growth initiatives" that would have allowed the university to prepare itself for the buildup.

The military buildup will bring at least 30,000 service members, dependents and laborers to Guam over the next few years, according to Pacific Daily News files. Wood said UOG nurses will be needed.

"Because of the nursing faculty shortage worldwide, if you can go down the street to another nursing program and get a job, why would you uproot and come halfway around the world to an area you are not familiar with?" she asked.

"(Nurses) don't have to all be from here, but we know there will be consistent care if people come into the system, they are with us and we don't have to worry about needing to scramble each year to hire," she said. "We want to have a stable health-care system."

Wood said the nursing program has had the largest increase in enrollment of any program on campus in recent years. More than 80 people have applied to the college this year and more than 60 should be accepted, she said. Unfortunately, for the first time, the shortage of professors may force the program to cap how many students the nursing school accepts, she said.

Wood said the nursing college employs six full-time faculty members and at least as many part-time members. The part-time faculty members work at full-time nursing jobs.

"They are getting tired," she said. "And the full-time faculty are pulling overloads every semester. We can't keep that pace up to produce more nurses. We are stretched to the limits."

Wood said a study by the nursing college determined that UOG needs to produce about 60 nurses a year to meet local demands.

This year UOG will only graduate about 20 nurses, she said. Last year 39 graduated.

To cope with the military buildup, UOG will have to graduate about 80 nurses per year, Wood said. To do so, it needs to fill two empty positions and hire about four more professors.

Underwood's growth initiatives included the hiring of six new professors for the college.

Shortfalls
During a presentation Friday, Underwood said the funding cuts affected almost every part of UOG's budget. In total, UOG requested about $40.5 million but was only appropriated about $31.2 million. Financial aid for Regent scholars, the Reserve Officers' Training Corps and Marine Lab graduates weren't funded. Yesterday, Underwood said the programs may be phased out.

"We will try to find a way to continue the programs for at least another semester," he said. "But over the long haul, unless they are funded specifically, they will no longer exist."

Underwood's growth initiatives would have spent $1.4 million on new faculty and supplies to help develop Guam's professional workforce, including the hiring of 21 new faculty members.

UOG requested another $1.5 million to raise faculty salaries to "recruit and retain the best minds" to lead Guam's development, Underwood said.

Yesterday, history professor Donald Platt said the university would struggle to recruit competitively without more funding. Platt is the chairman of the UOG Faculty Senate.

"If the growth initiatives aren't funded, we will be able to survive, but we can't improve much," he said. "We can't attract faculty."

Underwood asked faculty members to brainstorm over the weekend about how the university could save money to pay for some of growth initiatives. Although the Legislature didn't give UOG any money to expand, he hoped to still spend about $300,000.

"Every society that is on a growth cycle invests in its human beings. Every society that is in decline will always cut education," he said.

Lee Yudin, Dean of the College of Natural and Applied Sciences, suggested UOG might allow its current professors to teach more classes so fewer new hires were needed.

"It allows us a little bit of flexibility to offer more classes to our students when we deal with not being able to hire," he said.

Underwood said UOG could sustain its current population of 3,200 students, but may not be able to handle growth without more funding.

"While we are an open enrollment institution, we may face the day where we can't admit everyone we'd like to a given program at a given time," he said.

Underwood said he will weigh input from his faculty and propose a balanced budget to the UOG Board of Regents. He said the budget must be reviewed by Oct. 23.

Funding
Yesterday, Sen. Eddie Calvo said he tried to provide more funding for the university in his original budget bill, but the money was moved elsewhere. Calvo is chairman of the Committee on Finance. He is running for re-election.

Calvo said his original bill provided an additional $400,000 to the university. Had that bill passed, UOG would still have been short of its no-growth base budget and growth initiatives still would have been unfunded.

Calvo said he supported Underwood's goal of transforming the university into a factory for local professionals, but he had to prioritize the university's operations costs.

"We had to focus on meeting that base," Calvo said. "You are in need of a stable institution before you start to expand to the types of service and growth initiatives ... requested."

If Guam's "revenue picture" changes because of additional spending by tourists or the military, the Legislature could revisit the budget, he said. The Legislature also could re-appropriate funding from another agency, or the governor could use transfer authority to move money to UOG, Calvo said.

UOG Dealing With Budget Cuts

University Of Guam President Dealing With Budget Cuts, Shoots Down Tuition Surcharge
Written by Phillip Leon Guerrero,
Pacific News Center -
Guam, Saipan, CNMI, Asia-Pacific
Monday, 13 October 2008 07:20

Guam - The University of Guam continues to speak out on the effects of its budget cuts for this fiscal year. President Robert Underwood argues the University is a good investment.

“I don’t think people understand that for every dollar the government puts into [UOG] we get about $1.65 back. Because the faculty, the hard working faculty, administration and staff are able to turn that over, and get a lot of extra funding, whether it’s research grants, foundations,or federal funding,” he says.

The University will be giving out less financial aid, and fewer Yamashita Education Corps scholarships as a result of the under funding. Although UOG didn’t ask for any more money for operations compared to last fiscal year, the Legislature cut that aspect of the budget by over $2 million.

A number of ideas are being considered over how to deal with the shortfall, but a higher tuition, or an added surcharge isn’t one of them

“That’s probably not going to go through. I don’t think anyone is interested in that. I just don’t see how the students should bear the burden of the fact that [UOG] hasn’t been funded adequately,” Underwood says.

Governor Never Gave Budget for Dump Closure

Governor never gave budget for dump closure'
Tuesday March 18, 2008
By Therese Hart
Variety News Staff

SPEAKER Judi Won Pat (D-Inarajan) yesterday said the administration never submitted to the Legislature a budget request for the closure of the Ordot dump in the governor's 2005, 2006, and 2007 budgets.

"I don't know what the Governor is talking about… I checked with Senator (Eddie) Calvo and we have it on record that he never submitted a request for the closure of the landfill," Won Pat said.

Won Pat said that the request was only submitted in the governor's 2008 budget and even at that, he tapped into the Department of Education's funding.

Won Pat said she thought the governor would take 10 percent from other agencies to minimize the loss, but instead 100 percent of the funding was taken from the Department of Education.

"Clearly, this governor doesn't care about education," Won Pat said.

Won Pat also said that the governor and not the Legislature determines what the ceiling will be for his budget.

As for the controversy surrounding the Dandan site, Won Pat said that she and her colleagues were concerned about the process in which the Guam Economic Development Authority chose that particular site.

"We support the closure of the Ordot landfill, however, there are still many questions in terms of how Guam EPA went about selecting Dandan. We're still wondering whether that is truly where the new landfill should be," Won Pat said.

* Disappointed *

In a press release, Sen. Rory Respicio (D-Agana Heights) said that he was disappointed but not surprised with Chief Judge Tydingco-Gatewood's decision.

"This is the path from which the federal courts have never deviated since the beginning. The order appointing a receiver is full of assumptions that go against the facts in the issue. I believe the Chief Judge is following a direction that is wrong for Guam and our people, but is right for the federal government because it is the easiest path."

Respicio chided Tydingco-Gatewood's decision and said that the Chief Judge's decision shows a lack of caring about preserving the island's water resources.

"We've already seen reports that desalination plants might be necessary. I'm sure the Feds already have contractors lined up for those projects, just as they already had a contractor lined up to handle the receivership."

"By the judge's decision it is obvious that the federal government doesn't care how much a government-built landfill will cost the people of Guam. Our people are the ones that the federal government continues to shortchange every day... by not fully reimbursing Guam Compact Impact expenses, by not paying Guam the federal share for the Earned Income Tax Credit (EITC), and by making our people wait for more than 60 years for war reparations for pain and suffering in World War II.

"By the judge's decision it is obvious that the federal government doesn't care that the selection of Dandan violated the Consent Decree multiple times. This decision obviously has nothing to do with the Consent Decree at all. The Consent Decree is just an excuse to act unilaterally, to force us to do their bidding, and to bring in pre-selected private interests that will make millions from the federal government, while the people of Guam continue to suffer," the senator said.

Respicio also said that it is his belief that federal receivership will set back territorial-federal relations many years.