Showing posts with label Federal Monies. Show all posts
Showing posts with label Federal Monies. Show all posts

Monday, August 10, 2009

$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.

Saturday, December 20, 2008

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.

Thursday, October 09, 2008

Chamorros Deserve Native American Benefits

Chamorros deserve Native American benefits
THURSDAY, 09 OCTOBER 2008
The Marianas Variety
BY SEN. JUDITH P. GUTHERTZ

As a longstanding supporter of Chamorro Rights and Self-Determination, I introduced, along with Senators B.J. Cruz and Rory Respicio, Resolution No. 191. The resolution urges Guam Delegate Madeline Z. Bordallo to request the U.S. Congress to fully acknowledge the Chamorro people as Native Americans. It also requests full inclusion for the Chamorros under Title 25 of the U.S. Code, which covers Native Americans.
I am proud to have sponsored this resolution because it asks that Congress grant the Chamorro people full recognition as Native Americans and integration and inclusion as a Native American Indian Tribe, to be called, "I' Chamorro Na Taotaogui."

Chamorros should have the same recognition and rights as the other indigenous peoples who live on American soil, such as American Indians and Alaskan Eskimos.

If this goal were achieved, Chamorros would receive a number of benefits including greater access to federal contracts, which we believe will prove to be a significant advantage given the coming military buildup. The buildup is an enormous undertaking involving many billions of dollars, and we in Guam should receive our fair share of the business and our fair share of the prosperity that will result.

We had hoped that this issue could be discussed without bringing gambling into the picture, because the Native American status could open many doors for Guam-based businesses. As the laws are written, native groups that have been recognized under Title 25 have certain advantages when it comes to Federal contracts. It's possible that Native Americans from Alaska and the contiguous 48 states could have preference over our own local businesses in getting Federal contracts for the buildup in Guam.

However, some people are associating Resolution No. 191 with gambling. We do not want people to think that we are promoting gambling, because we do not support gambling." Senators Cruz, Respicio and I have decided to hold the Resolution back until after the November election so it won't have any effect on the vote on Proposal A, the "Responsible Gaming Act." Let me be very clear: we are all opposed to Proposal A.

It's unfortunate that the provisions of Title 25 are so broad, taking up 44 chapters on everything from child welfare to business development; from tribal land claims to forest resources management.

Included among them is legalized gambling: Title 25 allows the ruling councils of each of the indigenous groups to make decisions on a number of issues, and among the more well-known of these issues is the ability to legalize gambling (and build casinos) on Native American land.

There are other equally important benefits to be gained from becoming recognized as Native Americans, even beyond the ability to get federal contracts. The most important one is advancing federal recognition of Chamorros as an indigenous people. Federal authorities have yet to fully accept the cause of Chamorro Self-Determination, and the sovereign rights to which the Chamorro people are entitled under the provisions of the United Nations Charter.

Obtaining federal recognition of Chamorros as an indigenous tribe will provide another building block in our quest to secure Chamorro Self-Determination. The future political status of our island will be decided when the Chamorro Self-Determination vote is held. Our dream of Chamorro Self Determination will only be realized if we utilize all means at our disposal to secure federal recognition of the rights of the Chamorro people

Friday, September 12, 2008

More Financial Woes for GPSS

Financial problems continue to mount for GPSS
By Michele Catahay
Published Sep 12, 2008
KUAM News

The problems just keep rolling in at the Guam Public School System. Classes only started about a month ago, and now there's word schools could possibly shut down. The start of the new school year means the start of more problems as GPSS may have to close the gates on public campuses if the Department of Administration doesn't release nearly $3 million dollars to pay its outstanding balance to cover lunch meals for students.

GPSS owes approximately $2.9 million to the Department of Defense Defense Supply Center Philadelphia for 2005 leading up to the present. If that amount isn't paid in full, more than 22,000 students won't be able to have free or reduced lunch and breakfast. Federal programs administrator Ike Santos says GPSS was given notice that it could not place food orders after next week until the money is transferred to them, telling KUAM News, "They literally locked us out of the system in procuring the needed milk (which is fresh fluid milk), eggs, cheese, rice, bread and meat which are critical components that are needed for the school breakfast and lunch program."

While lawmakers passed and Governor Felix Camacho subsequently signed a bill into public law that provided the $2.9 million to settle the debt, Santos is now pleading with the island's chief executive to authorize DOA to release the money to avert schools from shutting down. He says the program has been going on for the last 39 years and this is the first time GPSS has been put on notice.

Explained Santos, "Most of our students are eligible for free and reduced lunch, as we said. This is the only means of nutritious meals that they get. We are appealing to the governor to allow the payment of $2.9 million to us immediately so we can insure that the National School Lunch and Breakfast Program is not suspended."

According to superintendent Dr. Nerissa Bretania-Shafer, assurances were made to the federal government that they would be wiring the outstanding payment as soon as it was released or by the end of next week, but has yet to receive any funding. "I know that the governor does have compassion for our students. This is not grandstanding," she assured. "This is really about making an appeal. So the students are provided the meals they need and that we wouldn't have to shut down the schools."

Meanwhile, Speaker Judi Won Pat (D) says the money could be available when the entire Government of Guam's budget is passed. She says GPSS could have covered the Child Nutrition Program if the money from the Territorial Education Facilities Fund was paid back by the Administration. ($4 million dollars was used to pay for the Ordot Dump.)

Speaker Won Pat said, "Those monies were paid to pay for the dump. What I'm saying to the Administration since that money was taken and not given to them, and now they're saying they're realizing some extra money is coming in this fiscal year and the revenue is going up [sic]. Then by all means start to pay back the $4 million and first address the Child Nutrition Program."

Dr. Bretania-Shafer's Letter to Governor Camacho

Saturday, September 06, 2008

US DOE Witholding Funds

U.S. DOE withholding funds:
Feds want AG's opinion on who governs GPSS
By Beau Hodai
Pacific Daily News
September 8, 2008


The Guam Public School System won't receive any of the nearly $40 million in federal funds it expects to receive until it's clear who governs the school system.

GPSS Superintendent Nerissa Bretania-Shafer yesterday said she had been contacted by U.S. DOE Risk Management Services Director Philip Maestri on Saturday. He informed her U.S. DOE wouldn't provide any federal funding for fiscal year 2009, which begins Oct. 1, unless Guam's Office of the Attorney General provides an opinion as to who has authority over the school system.

"Even though the funds may be delayed a few days, these are issues that need to be clarified," Bretania-Shafer said, noting that Maestri has repeatedly praised the progress the school system has made in meeting its corrective action plan.

The school system will maintain its high-risk grantee status unless it completes the corrective action plan requirements, which includes improving financial accountability and correcting procurement shortfalls.

Bretania-Shafer said a conference call has been scheduled for 7 a.m. Tuesday between Attorney General Alicia Limtiaco, Maestri and other members of U.S. DOE. The superintendent said she is optimistic that the AG's office will respond quickly.

Bretania-Shafer said this latest concern from federal education officials came on the heels of a letter she and the Guam Education Policy Board sent to Maestri in late August. She said the primary issue was related to protocol in dealing with the handling of federal funds.

"I have purview over federal funds. The (Guam Education Policy Board) has purview over me, but not over federal funds," said Bretania-Shafer. "How could (the board) hold me fully accountable when dealing with something that they are prohibited from dealing with?"

She also said DOE officials were unclear over what role the governor has in regards to the oversight and governance of GPSS.

The school system receives about $40 million in federal funds each year. With fiscal 2008 ending Sept. 30, money for federally funded programs will soon run out.

Some GPSS programs that stand to lose funding include special education, the Reading First program, the English as a Second Language program, Direct Instruction and Success for All, among others.

Bretania-Shafer said school officials have been considering alternatives if the federal funding is withheld indefinitely.

"We're going to have to appeal to the local government to help us carry the load that was carried by the federal government," Bretania-Shafer said. "Of the utmost concern to me are the funds for students with disabilities."

She said that she plans to meet with Gov. Felix Camacho soon and inform the Legislature of the situation once GPSS has assessed its financial situation internally.

"The governor wants to get this problem solved as quickly as possible, because we will continue funding these programs with local funding," said George Bamba, Camacho's chief of staff. "But, that will have a rippling effect throughout the government and other programs will suffer. We need to have this resolved by the end of the week."

School board Chairman Joe San Agustin expressed frustration last night with what he said is a lack of formal notification.

"We're waiting for this in writing, so we can respond to it accordingly," San Agustin said.

Friday, July 27, 2007

TopOff4

Feds want Guam to foot the bill for TopOFF 4 exercise
By Mar-Vic Cagurangan
Variety News Staff
July 26, 2007

EXPENSES for the TOPOFF 4 Full-Scale Exercise slated in October is likely to reach about $10 million and the U.S. Department of Homeland Security hints that the government of Guam might have to foot the bill, Sen. Frank Blas Jr., R-Barrigada, said yesterday.

"But where will GovGuam pull the money?" Blas asked, noting that Guam received only a $2.2 million grant from DHS for homeland security management this year.

"Whatever amount that we take out of the grant to pay for the exercise would mean less money that we can use for the actual purpose of the grant," Blas said in a long-distance phone interview.

Blas, a former homeland security advisor, and his successor Dennis Santo Tomas, are in Washington., D.C. meeting with DHS officials to discuss the TopOff 4 Exercise, which will be held on Guam from Oct. 15 to 24.

TOPOFF 4 is the nation's premier terrorism preparedness training that will involve more than 15,000 participants representing federal, state, territorial, local entities and international observers.

Among the incidental expenses for the exercise are personnel cost, security, props, power, transportation, lodging and food.

"Initially, they said they would take care of these. Now they are saying they won't be able to take care of these," Blas said. "Unfortunately since then, DHS has pulled back saying they had procurement problems on their end."

When he was the governor's homeland security advisor, Blas met with his federal counterparts in November last year to work on a memorandum of understanding pertaining to the federal government's financial responsibility.

"Although there has been continued discussion over the last two and a half years as to who would be financially responsible for what, DHS has yet to come to any decision on their end as to what they will be able to pay for," Blas said.

Blas's and Santo Tomas's meeting with DHS will continue over the next two days.
"Guam has continually pushed this issue and with the exercise just three months away, we would like for DHS to resolve this issue so that it does not continue to be a major point of contention," he added.

TOPOFF 4 participants will engage in various activities as part of a robust, full-scale simulated response to a multi-faceted threat. The exercise will address policy and strategic issues that mobilize prevention and response systems, require participants to make difficult decisions, carry out essential functions, and challenge their ability to maintain a common operating picture during an incident of national significance.

The exercise is based on National Planning Scenario 11, which begins with terrorists, who have been planning attacks in Oregon, Arizona, and Guam, successfully bringing in radioactive material into the United States.