University of Guam Tuition Fee Increase Averted

TUESDAY, 20 SEPTEMBER 2011 00:47 BY THERESE HART | VARIETY NEWS STAFF

ANSWERING the pleas from University of Guam students who protested against a 5 percent tuition rate hike during a public hearing held at the Mangilao campus, lawmakers quickly passed emergency Bill 308 during the last day of session yesterday, waiving the requirement of a public hearing and appropriating $1.36 million from the Supplemental Appropriations Revenue Fund.

The bill’s sponsor, appropriations chairman Senator Ben Pangelinan, yesterday said the funds should avert a tuition fee increase. The Board of Regents will meet next Thursday, Sept. 29 to decide on the tuition increase proposal.

UOG officials said a tuition increase was necessary because although they requested $29 million for Fiscal Year 2012, Governor Eddie Baza Calvo only identified $26 million. UOG current funding level is $27 million. Some of the shortfall, said UOG officials, needed to be captured, hence the proposed 5 percent tuition increase. Calvo’s funding cut to the university would not have been able to operate at its current funding level next year. Although the $1.36 million would stave off a tuition increase, UOG would still need to cut $1.9 million and is working toward financial belt-tightening measures.

The bill also identifies $1.5 million to pay for tax year 2010 A-status returns. A-status returns are income tax returns certified by the Department of Revenue and Taxation as ready for payment.

The $2.8 million will come from anticipated additional Section 30 funds requested from Gov. Calvo for Fiscal Year 2012, which, Pangelinan said, his office discovered only after sending a Freedom Of Information Act request to the Bureau of Budget and Management Research. Pangelinan’s request was made Sept. 6. Director John Rios responded to the FOIA request on Sept. 16.

Pangelinan blasted Calvo, saying he was less than transparent when he submitted the budget bill which included $50 million in Section 30 funds to lawmakers, not disclosing to lawmakers the additional $3 million. These funds are part of the revenue stream and included in the General Fund.

The actual Section 30 advance request amount Calvo requested from the Department of Interior was $53 million, according to a Sept. 1 letter from Calvo to Assistant Secretary of the Interior Tony Babauta.

Public Law 30-219 mandates that no later than 15 days after the end of the third quarter of each fiscal year, the governor must provide the Speaker and the Office of Finance and Budget a report of all correspondence with the United States Treasury, Department of Interior, Office of Insular Affairs and other entities of the U.S. government related to prior and future fiscal year estimates and reconciliation of duties, fees, and taxes (referred to as Section 30 funds), remitted prior to the beginning of the next fiscal year.

During session, Pangelinan said in spite of the law, Governor Calvo continues to circumvent it by not submitting information to the Legislature.

Students protest against UOG tuition hike

WEDNESDAY, 14 SEPTEMBER 2011 04:49 BY GERALDINE CASTILLO | VARIETY NEWS STAFF

EMOTIONS ran high for students yesterday as they diplomatically voiced their opposition against the University of Guam's proposed tuition rate increase.

A public hearing organized by UOG President Robert Underwood and the Board of Regent's Budget, Finance, Investments and Audit Committee and the Student Affairs, Scholarship, Alumni Relations and Honorary Degree Committee was held yesterday at the School of Business and Public Administration Building.

Nearly 100 students filled the room to support one another as some took the opportunity to present their views and arguments before the board.

Proposed changes to the university's tuition rates include a 10 percent increase to resident undergraduate and graduate students beginning Spring 2012, with a 5 percent increase in Fall 2012, and another 5 percent again in Fall 2013.

The current resident undergraduate tuition rate per credit hour is $190. With the proposed 10 percent increase for Spring 2012, the new cost would amount to $209; by Fall 2012, $220; and in Fall 2013, $231.

For non-residents, the rates would decrease in Spring 2012 and then increase 5 percent in each of the next two academic years.

Since Fall 2009 to current, tuition for non-resident undergraduates cost $565. By implementing the new rates by Spring 2012, tuition would drop to $435, then increase to $457 by Fall 2012, and again to $480 by Fall 2013.

Shortage

The tuition changes stem from a shortage in the amount the government appropriated for the university's budget for next fiscal year.

According to Vice President of Administration and Finance David O'Brien, UOG had requested a $29.9 million appropriation for FY2012 general operations. The Legislature, in turn, came up with Substitute Bill 145-31, which appropriates only $26.7 million. This leaves the university short $3.2 million.

In order to meet the budget cut, O'Brien said the university estimated $1.9 million to come from cost-reduction and energy-conservation measures. They also are contemplating salary cuts.

To fill in the remaining $1.3 million gap, UOG proposed the tuition increase. According to the UOG Proposal for Tuition Rate Changes and Economic Impact Statement, the increase in tuition is to also accommodate the growth in student enrollment.

“Revenue generated by the proposed tuition increase will benefit academic quality and support student learning,” the proposal and EIS stated.

Protest

Minutes before the public hearing, dozens of students rallied together with posters. Organized by FITE Club – Fellows for Inquiry Towards Enlightenment – the student activist group wanted to make clear that despite their struggles, they were willing to compromise.

“We hope to find solutions to mitigate our financial situation,” said FITE Club President Kenneth Gofigan Kuper. The 20-year-old senior majoring in Psychology insisted, “We're willing to compromise ... we're not necessarily here to say no to everything.”

The students then began their march, hoping to later echo their rhetoric during the public hearing.

“We are here to listen to your opinion ... we're not only asking for your understanding but your assistance,” said President Underwood to the students.

Earlier, Underwood stated that in order to avoid a tuition increase, the university needs to secure additional support from the government of Guam either through legislative appropriation or reprogramming by the government.

“I'm so glad that you're here today, in helping make the case and the university's case ... not only in your name, but in the name of educational opportunity for incoming students,” Underwood told the students.

Over a dozen students each voiced their concerns with passion and conviction.

“I'm not a math major, but I know we're short,” said 20-year-old student and junior Jesse Quenga. “And because we're short, that's why we're seeing that the $1.3 million is gonna come out of somewhere, but why does it have to come out of our pockets?”

Quenga, who is also president of the 60th Student Government Association, spoke matter-of-factly on behalf of all the students.

“We're just one demographic ... we're just one student who's probably a single parent, who's probably working three jobs, who's probably trying their best to prove to their parents ... that this is the best decision for now,” he said. “What they need to remember is that this is an investment – an investment that we're going to see later on in the future.”

Not only did the students highlight the reality of their economic or personal struggles, they also proposed suggestions and solutions in hopes to find compromise. Among those suggestions was the idea of utilizing e-books or making textbooks available online instead of purchasing expensive textbooks. Another suggestion was influencing a more sustainable culture at the campus, and finding more ways to be more efficient.

“If education is so vital, if education is such a staple to success, then allow us to absorb that success,” Kuper urged the board. “Provide us that opportunity to pave the road to success. ... Let us know that you are doing your part as well.”

CCU Opposes Navy's Water Increase from Fena

CCU opposes Navy's increase in water rates from Fena
by Sonya Artero, KUAM News
Thursday, August 14, 2008

The Guam Waterworks Authority could be heading to court as the Navy announced its intentions to increase the price it charges the water agency for water from Fena Lake. Starting October 1 the Navy is expected to increase its rates to $3.80 per 1,000 gallons which would result in an eventual increase for ratepayers.

The Consolidated Commission on Utilities is reviewing two options, to negotiate for a lower rate with the Navy or litigate to return Fena to the government of Guam. In September of last year, the Navy warned residents that it would raise the rate of water it supplied to GWA. Last night that warning turned into an official announcement as effective October 1, the Navy intends to raise its rate by an additional $0.55 thereby charging a total of $3.80 per 1,000 gallons of water.

The problem the CCU has with the increase is two fold. First, GWA currently produces water at a lower rate and two that charge is based on servicing several thousand customers. So since GWA is the Navy's only customer and its source of water only comes from Fena Lake, CCU Chairperson Simon Sanchez believes the rate should be lower.

"We're one account, they send us a bill once a month for all the water we take, so they don't have administrative expenses like GWA and we take the bulk of the water from Fena Lake so there is no distribution costs for the water we take at Fena Lake," he said. Sanchez added he believes the Navy is increasing its rates too much too fast.

"A year ago they had a 50% increase, this year they're proposing a 17% increase and in the 5–year since the CCU has taken office, there has only been 38% increase in water rates," Sanchez noted.
The CCU is now hoping the Navy will reconsider. If not it intends to take the legal route.
"Last night the commission agreed to push these 2 endeavors. To have the Navy justify and re–consider its recent adjustment and to explore the recent options with regard to re–visiting the Fena ownership issue."

Ideally the CCU would like to convert the Navy to a GWA customer and have one unified water system for the entire island instead of paying more for water. "Begin to convert the Navy as a customer to a customer of GWA, turn over all the water assets, just like they did at the airport and they did at GPA, to the government of guam, to GWA, and we'll sell them water for less than they've been charging themselves," Sanchez said.

Read the Navy's letter to Simon Sanchez

GPA Bills May Increase

Power bills may increase:
GPA wants another fuel surcharge hike
By William B. Martin Jr.
Pacific Daily News • July 18, 2008

Plan to find a way to reduce your spending in the next few months so you can pay higher power bills.

The Guam Power Authority asked the Public Utilities Commission in June to approve an increase to the Levelized Energy Adjustment Clause, or fuel surcharge, portion of customer bills. It once again cited rising fuel costs as the reason behind the increase.

If approved, Guam residents can expect to pay an additional 7.3 percent of their total bill, or about $17.33 on an average 1,000 kilowatt-hour monthly consumption rate, the commission docket states.

Simon Sanchez, chairman of the Consolidated Commission on Utilities, said that, if passed, the increase would push the fuel portion of power bills to about 75 percent.

"We all see the prices at the pump," GPA General Manager Joaquin Flores said. "We must all be aware of how volatile (the oil market) is right now."

The adjustment proposal comes a little over a month after an emergency LEAC adjustment hit islanders' wallets to the tune of a 10 percent increase.

Flores said the June adjustment was an emergency measure to recover fuel costs lost over the previous LEAC cycle, while the proposed increase is the result of a "mechanical" review process that takes place every six months.

Sanchez said the adjustment is designed to account for another six months of fuel purchases.

"The hope is when you make these fuel cost projections," he said, "it will hold six months, unless the (fuel) market goes crazy again."

Streetlights
Acting Gov. Michael Cruz yesterday signed a loan document for the government of Guam to settle its $13.8 million streetlight debt to the Guam Power Authority.

The debt caused the power authority to begin disconnecting village streetlights earlier this year, prompting the Guam Legislature and administration to pass legislation to borrow money to pay off the debt.

"We're closing a chapter -- hopefully -- in our history that really needs to be closed," said Cruz.

The payment will offset a 2- to 6-percent base rate increase to customer power bills that would have gone into effect last month. If the debt hadn't been paid, the increase would have gone into effect this year instead of next year.

Sanchez said the payment also will take some $5.3 million off the top of fuel costs, which, if not recovered, would require an even higher fuel surcharge increase.

Flores reminded Cruz and other government officials that a shortfall still exists in the payment of current streetlight operations and will need to be addressed or the problem will arise again.

Bureau of Budget and Management Research Director Bertha Duenas said there is a provision in Public Law 29-85 that allows General Fund money to be used for this fiscal year's shortfall -- around $1.2 million -- but questioned why lawmakers didn't allow the provision for future years.

"Why don't we just do everything as we should in one bill?" she asked.