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.

Erosion eating away at Nimitz Beach Park

by Nick Delgado from KUAM.com

Guam - The shoreline in Agat is literally sinking, and officials are scrambling to find a solution. It's an eyesore for those who stop by Nimitz Beach in Agat - the shoreline is being eaten away and officials are concerned that it could eventually wipe the park off the map.

"The area is eroding," said village mayor Carol Tayama. "We need to do something." She's working with the Department of Public Works, the Army Corps of Engineers and the Department of Parks & Recreation on the matter. The problem is obvious as you can see the public shower is half way tilted into the ocean, picnic tables and benches in the water and the sidewalk chipping away.

"We need to do something now residents are complaining that pretty soon they wont be able to do their walks in the morning or in the evenings because it's eating in to the sidewalks," the mayor added.

Parks & Rec director Pete Calvo says he will have to barricade these hazardous areas. Calvo toured the site Thursday with the Agat mayor and Senator Mana Silva Taijeron hoping to get a clear picture of what needs to be done. He said they even had to shut down a public restroom, as there was proof that the erosion was working its way underneath the structure.

"We don't want to have the public in that predicament where they are unknowingly going in to use the restroom and perhaps just their weight alone may have shifted the building and cause a collapse or something to that effect," Calvo noted.

And what's worse - Calvo admits is that the erosion problem may not just be isolated to the Nimitz Beach area. "It may not be feasible for us to only protect Nimitz Beach," he explained. "We may have to go down the line and protect all the beaches down the line. What we don't want to do is drive the problem into another person's backyard...the concerns are similar to the erosion problems over at the Inarajan and Talofofo Bay area, and officials are hoping to expedite the process to prevent anymore of this land from eroding into the ocean."

Parks & Rec oversight chair Senator Tina Muna Barnes says fixing the erosion problem depends on how fast GovGuam can get the funding. "It's important to look and see if there is some emergency funding that we can receive from some federal grants in stopping and protecting that erosion from continuing to come on in," she said.

Calvo meanwhile says they are waiting for mitigation recommendations from the Army Corps of Engineers before they can begin any effort to stop the erosion. He does plan on planting more trees as a temporary fix. In the meantime, he cautions residents who use the park, saying, "When they use the beach they go to be mindful that the erosion of the shoreline also signifies the possible tidal movements in the water itself and so they got to be careful."

USEPA comments on the Final EIS

USEPA comments on the Final EIS

by Michele Catahay from KUAM. com

Guam - The U.S. Environmental Protection Agency recognizes that some concerns noted in the Draft Environmental Impact Statement have been addressed in the Final EIS. Despite improvements to the document, more work needs to be done to ensure environmental concerns are properly addressed.

It was several months ago when the US Environmental Protection Agency had said the Draft Environmental Impact Statement for the U.S. Marines' relocation was "environmentally unsatisfactory". Now after the release of the Final EIS and talks with the Department of Defense on these issues, USEPA's Jared Blumenfeld says based on his review there are still major concerns that need to be addressed.

He says if mitigation efforts promised in the EIS are successfully implemented, the project will avoid negative impacts to health and environment. USEPA says in order for the implementation to be successful, DOD must commit to three major mitigation measures: (1) seek funding for drinking water and wastewater system infrastructure; (2) manage construction and the arrival of military personnel to not cause significant environmental impacts or existing infrastructure limitations through adaptive program management; and (3) undertake an additional assessment of coral at Apra Harbor.

Deputy Assistant Secretary of the Navy who manages environmental programs Donald Schregardus is currently on island and he says he will work closely with agencies to ensure these issues are addressed. "I'm pleased. We've put a lot of effort. We've worked with EPA and NOAA and the Department of the Interior on improving the document, so I'm glad they've recognized that. We, especially with the Department of Navy, remain committed to meeting our requirements, investing in the sewer and water system, the road systems and meeting the cultural concerns on the island, as well," he said.

To date, no funding has been secured to upgrade to the drinking water and wastewater system improvements, USEPA says DOD needs to commit to seeking much needed funding and come up with a plan to pursue an additional $700 million for upgrades. Upgrades are needed for upgrades to the North District and Hagatna Wastewater Treatment Plant.

"We recognized that there are significant challenges with infrastructure on the island. We're committed to ensuring that the Department of Defense makes its commitments, but does everything in its power to help Guam and the federal government makes its commitment on infrastructure and other needs here on the island of Guam," Shregardus added.

The EPA also says the record of decision should clarify who decision makers are, whom the Environmental Council is advising and the process for making decisions when it comes to these impacts. When it comes to emissions, EPA says the Department of Defense must commit to analyzing diesel before construction activities are underway. It is expected that the buildup will increase emissions in a medically underserved community.

The EPA also recommends for DOD to commit to coordination with the Guam Power Authority. With these issues outlined as part of comments submitted from the USEPA, the federal agency says it will continue working with DOD, the Government of Guam and other federal agencies to ensure the environmental acceptability of the project.

PNC :: Governor Issues Executive Order Changing Island Name To Guahan

PNC :: Governor Issues Executive Order Changing Island Name To Guahan

Monday, 15 February 2010

Guam - As promised in his State of the Island Address, Governor Felix Camacho wasted little time issuing an executive order to change the official name of Guam to Guahan.

His Executive Order applies to all GovGuam agencies and encourages the local businesses and the community at large to adopt the name change as well.

Read the Executive Order
http://www.pacificnewscenter.com/images/pdf/exorder.pdf

In addition the Executive order requests lawmakers pass a law re-designating Guam as Guahan.

Written by : Kevin Kerrigan

Guam-CNMI reunification in Camacho's last State of the Island Address

Guam-CNMI reunification in Camacho's last State of the Island Address

Tuesday, February 16, 2010
By Haidee V. Eugenio

Guam Gov. Felix P. Camacho brought up anew the idea of a Guam-CNMI reunification in his last State of the Island Address yesterday.

But Camacho's address, which is 11 pages long, talked heavily about the massive military buildup in Guam.

He reiterated his request to the U.S. Department of Defense to delay the buildup until after 2014, and asked the military to commit to fund the buildup needs of the government of Guam.

“Over the last seven years, our ties to our brothers and sisters in the neighboring islands of the CNMI have become closer than ever. As we recognize the combined strength of the Mariana Islands on matters of mutual interest and benefit, Guam and the CNMI should once again seek reunification,” Camacho said in his speech.

Camacho, who was on Saipan on Tuesday last week for the signing of a memorandum of understanding with Gov. Benigno R. Fitial on the recruitment of CNMI residents for the Guam National Guard, has been consistently pushing for a Marianas reunification.

“As one Marianas, with greater representation and inclusion as American citizens, we will only strengthen our people and communities,” the Guam governor said in his address.

CNMI Press Secretary Angel A. Demapan, when asked for comment yesterday, said “any attempt to explore and achieve reunification of Guam and the CNMI would have to be a decision that is made by the people.”

The people of Guam voted against reintegration with the CNMI on Nov. 4, 1969.

At that time, the people of the CNMI overwhelmingly voted in favor of such unification.

Demapan said “Fitial believes that if reunification is to be pursued again, it should be done only at the will of the people of the Commonwealth by way of another plebiscite.”

“As governor of the CNMI, he respects the will of the people as the ultimate decision,” Demapan added.

One theory behind Guam people's 1969 rejection of reunification is that it came as a payback to the Northern Marianas Chamorros for their assistance to Japanese forces during the occupation of Guam.

Another theory is that the reunification issue “simply lost its significance when compared to the pending election of the first governor of Guam, which was scheduled to take place the following year.”

In 1970, the late Carlos Garcia Camacho, who is Camacho's father, became the first governor of Guam to be elected by its people. Before that, he was an incumbent governor appointed by then U.S. President Richard Nixon.

Governor's Final State of the Island Address Filled With Surprises

Governor's Final State of the Island Address Filled With Surprises

Monday, 15 February 2010

Guam - After nearly completing eight years in office Governor Felix Camacho gave his last state of the island address Monday morning..

While he looked back on his past accomplishments Camacho also looked to the future as he spoke about the military buildup and how it would affect the lives of everyone on Guam. Governor Felix Camacho began his last state of the island address with a reflection on the past recalling how he first took the oath of office by candelight.

Camacho took the reigns of GovGuam almost immediately after typhoon Pongsona ripped through the island. He dealt with the economic recession in Asia and the aftermath of 9/11. It was not a time of prosperity. This is why the governor spoke proudly of how his administration and his family helped him turn tragedy into triumph.

He listed off the many accomplishments of his administration saying "Through municipal leasing we build Okkodo High, Astumbo Middle, Liguan and Adacao Elementary schools when people said we couldn'." He also spoke of the millions of dollars worth of construction his administration has undertaken to improve roads expand airport runways and improve water and wastewater. He said "Today our water is the cleanest and safest it's been in decades."

The Govenor also dropped a few bombshells talking about issues that would've seemed unlikely to come out of his mouth during his first term as governor. For example he spoke about the reunification of Guam and the Commonwealth of the Northern Marianas Islands. He also spoke candidly about the military buildup saying it was imperative that it be done properly. He said "First the federal government must commit to fund the government of Guam's buildup needs" He also said that the buildup timeline must be extended beyond 2014 and called upon the Department of Defense to re-evaluate their plans and placement of the firing range and proposed dredging of Apra Harbor. He said "I will not support the condemnation of our Ancestral or Chamorro Land Trust Properties."

Finally, he spoke about something that if done could grant him a solid spot in the anals of Guam history. Before dropping this final bom he said "Okay here we go, this is Legacy time". The governor was referring to his propossal to change the name of Guam to Guahan. Guahan is a name many believe to be the original name of Guam.

Written by : Clynt Ridgell

Camacho to make final address: Residents want governor to discuss military buildup

Camacho to make final address: Residents want governor to discuss military buildup

By Amritha Alladi • Pacific Daily News • February 15, 2010

Gov. Felix Camacho will present his last State of the Island address today.

Some Guam residents shopping in Hagåtña yesterday gave the governor a medium rating for his last term. They're hoping he devotes significant time in today's speech to talk about what exactly the government of Guam has done in preparation for the military buildup, and how it plans to ensure the buildup is carried out in the safest way possible for Guam residents.

"I think he needs to address the point that the federal government, the United States, is a highly powerful government to deal with, and that the military in any case would not need any type of support from our government whatsoever," said Tom Delgado of Mangilao. "They will decide how much they're going to develop here on Guam, and for (the local government) to expect any kind of financial support is kind of ridiculous."

On a scale of one to 10, Delgado gave Camacho a four.

"He's never on island to address the issues that most of our people are concerned with," he said. "With the budget, with education, and I'm really disappointed with that."

And in terms of accountability, Delgado said the governor hasn't lived up to the expectations of those who put him in office.

"When he ran for office, he was talking about holding people accountable, downsizing the administration, and he's totally done opposite of that. So I'm sure that most of the people who voted for him under those terms are quite disappointed about his hypocrisy," Delgado said.

Bamba controversy

Specifically, the controversy over the actions of the governor's chief of staff, George Bamba, has tainted the governor's promise of accountability, Delgado said.

According to Pacific Daily News files, Bamba used military buildup-related grant money to pay for a port community outreach project that wasn't put out to bid.

The Office of the Attorney General last week released a procurement review finding the procurement was illegal. It suggested the governor should take appropriate action against Bamba; however, Camacho said he didn't agree with the AG's report. He said the procurement process, and not the individual, was at fault.

"He will always defend George Bamba to the utmost," Delgado said. "I mean he selected (him), so it would be kind of hypocritical if our governor -- who put these people in our community service -- if he would reprimand them in any case."

Meeting goals

Others felt the governor has truly tried to be transparent.

"He's doing everything possible. I believe that's his goal," said Inarajan resident Joe Afaisen, a GovGuam employee.

Afaisen said he feels the governor has done as good a job as he can with the resources he's been provided.

"The police are given the necessary tools. It's enough to provide the services to consumers," he said. "The island continues to move forward."

Indifference

Tamuning resident Ken San Nicolas didn't seem to think so.

He found the governor's "indifference" more frustrating than negative action, he suggested.

"I think Felix Camacho was indifferent during his two terms. I don't know what he's really going to talk about (in his State of the Island address)," San Nicolas said. "Maybe it wasn't any better than Carl (Gutierrez)'s term, but indifference is like the worst thing he could have done. There was, like, no productivity."

San Nicolas said Camacho was "not at all" holding his administration accountable, citing the Bamba example specifically.

But he gave Camacho a rating of six.

For San Nicolas, it comes down to whether Camacho sufficiently addresses the issue of the buildup today, especially as the comment period for the draft EIS comes to a close this week.

"I want to hear him talk about what kind of real progress we've made in the last four years," San Nicolas said. "We've known about (the buildup) for a while. I can't say that he's procrastinating. I don't think he procrastinated. I just don't think he did anything."

"The buildup is coming in right now, and we're nowhere," he added.

"Nothing's really happened."

Cruz: Guam must enjoy revenue perks

Cruz: Guam must enjoy revenue perks

Wednesday, 10 February 2010 04:08
by Therese Hart | Variety News Staff

VICE speaker BJ seeks reassurances from the U.S. Congress that Guam will reap the maximum amount of local tax revenues to be generated by the military buildup from federal contractors.

He is also soliciting the assistance of Congresswoman Madeleine Z. Bordallo.

Cruz forwarded several letters to Bordallo relaying his concerns about the government of Guam’s ability to collect buildup related tax revenues and asked for special language in the 2012 National Defense Authorization Act to support Guam’s tax collection efforts.

Cruz is requesting that language be secured in the federal budget act that would require each federal construction contract to designate Guam as the designated place of origin and that all associated income related to the buildup, including corporate bonuses, be designated possession source income, without any special exemption and that Department of Defense cooperates with local tax officials.

Cruz said there are many issues concerning the process of collecting corporate and individual income taxes and particularly taxable income related to projects for corporations and individuals who file outside Guam.

Cruz pointed out that in May last year, Secretary of the Navy B.J. Penn indicated that at the local level, the government of Guam is responsible for collecting local tax revenues.

“It is only fair that steps be taken at the federal level ensuring that the windfall from the contracts related to this buildup enjoy the full scrutiny of local tax enforcement,” said the vice speaker.

In response to Cruz, Bordallo wrote that she would keep his suggestion for legislation in mind as she begins proposals for inclusion in the 2011 National Defense Authorization Act.

However, Bordallo said she will await the results of the report from the Department of Defense before she takes further action. She believes that the report will assist her in developing more accurate and comprehensive legislation.

UOG Economics Professor Says Benefits Of Buildup Overstated in DEIS

UOG Economics Professor Says Benefits Of Buildup Overstated in DEIS

Monday, 08 February 2010

Guam - A University of Guam professor of economics is saying that the Draft Environmental Impact Statement for the Guam military buildup is inaccurately estimating the economic boost that the buildup will bring Guam. According to Dr. Claret Ruane the DEIS estimates are overstating the buildup's economic impacts.

University of Guam professor of economics Dr. Claret Ruane says that the DEIS is borrowing a formula from Hawaii to calculate the economic benefits of the Guam Military Buildup.

According to Dr. Ruane it all boils down to what's called the multiplier effect. Basically it's a formula used by economists to determine how much money will circulate through an economy. Dr. Ruane says the DEIS does this by multiplying every dollar brought into Guam from the buildup and multiplying it by 1.89. 1.89 is the same figure that Hawaii uses to determine the multiplier effect.

Dr. Ruane feels that the Guam multiplier is much less. She thinks Guam should be using a multiplier of 1.5 but just for arguments sake she based her first analysis on a multiplier of 1.82. The DEIS estimates the total number of dollars circulating in the economy because of the buildup as over a billion dollars. Dr. Ruane used a multiplier of 1.82 and came up with $567 million. Using a 1.5 multiplier gave her a figure of $467 million. Dr. Ruane's biggest problem is that there simply isn't any real data to determine what formula Guam should be using. Thus she'd rather err on the side of caution. She says "I'd like to be more positive about it but the numbers are just not giving me a straight answer."

It's important to know how much money will be infused into Guam's economy so that the government can calculate how much revenues they can count on. Dr. Ruane says that if the total economic benefit ends up being half of what is estimated then revenues collected by GovGuam will also be half of what is estimated.

Dr. Ruane is not against the buildup but she says this should be an opportunity to look to the future of the island and look at what other options Guam has to further develop it's economy. She says it is a good call for the community and "...military buildup or not we should find ways to move this island forward."

Written by : Clynt Ridgell

Cruz: DoD Not Doing Enough To Ensure Contractors Pay Guam Taxes

Cruz: DoD Not Doing Enough To Ensure Contractors Pay Guam Taxes

Monday, 08 February 2010

Guam - Vice Speaker B.J. Cruz says a provision in the National Defense Authorization Act to assist Guam in Buildup tax collections is not enough.

In a release, Cruz says he is responding to Guam Delegate Madeleine Bordallo’s assurances that the provision will provide the help needed to GovGuam.

The release states that the Speaker received a letter from Bordallo assuring him that the Department of Defense is required to report on the steps that the Department of Defense is taking to ensure that contractors performing work on Guam comply with local tax and licensing requirements.

The Vice Speaker's release states that Bordallo was responding to Cruz’s request that she act on the matter.

However Cruz's response to Bordallo is:

“The report does not require the Department of Defense to cooperate with local officials nor to adhere to any specific federal requirement to ensure its contractors are paying Guam’s federally mirrored income taxes.”

The Vice SPeaker also states: “In my letter, I specifically asked that you secure language requiring each construction contract to designate Guam as the situs and that all associated income be designated possession source income, without any special exemption. Additionally, I asked that DoD be specifically required to cooperate with tax officials on Guam."

Written by : News Release

PNC :: GovGuam Reaches Out to Students at YOUTHSPEAK

PNC :: GovGuam Reaches Out to Students at YOUTHSPEAK

Saturday, 06 February 2010

Guam - The Office of the Governor, PBS Guam, the Guam Coastal Management Program, the Bureau of Statistics and Plans, and the Guam Build-up Office hosted YOUTHSPEAK today at the Guam Marriot Resort and Spa. This is one of a series of events in the ‘OUR ISLAND, OUR LIVES’ campaign aimed at providing information on how residents can effectively respond to the Draft Environmental Impact Statement (DEIS).

During his opening remarks, Governor Camacho shared with students the importance of being involved in the DEIS process.

“These students are our leaders and they can make a difference. We understand they will inherit the results of the decisions we make today,” said Governor Camacho. “We hope each one of these students will take what they’ve learned and share it with their family, friends and fellow classmates.”

During the event, students were divided into small groups and tasked with reading particular sections of the DEIS. Students were further taught how to skim read the DEIS, properly reference a section and submit well-informed actionable comments.

“The event was really successful. Everyone showed great interest in the exercises and brought up issues about the island’s wastewater, coral, destruction of habitats and other proposed items in the DEIS. We encouraged them to return to their schools and help their peers comment before the February 17th deadline,” said Guam Coastal Management Program Manager Vangie Lujan.

‘OUR ISLAND, OUR LIVES’ seeks to provide information on how residents can effectively respond to the DEIS. Additionally, the campaign plans to collect comments regarding the DEIS, which in turn will be submitted to the Department of Defense on behalf of the people of Guam.

For more information, please contact Charlene Calip at 475-9303 or 788-0589 or e-mail charlene.calip@guam.gov

Written by : News Release

Agencies face deadline for DEIS comments

Agencies face deadline for DEIS comments

Posted: Feb 03, 2010 11:07 PM PST
by Nick Delgado

Guam - Today is the deadline for government of Guam agencies to submit their official comments on the Draft Environmental Impact Statement to Adelup. Staffers from the Governor's Office say a review team with the Guam Buildup Office will be compiling the comments from the departments to allow for GovGuam to present a consolidated list before the February 17 deadline.

Pangelinan says DEIS math is faulty

Pangelinan says DEIS math is faulty

Wednesday, 03 February 2010 01:38
by Zita Y. Taitano | Variety News Staff

SENATOR Ben Pangelinan claimed yesterday a section of the draft environmental impact statement on local government revenues is flawed.

The chairman of the Committee on Appropriations, Taxation, Banking, Insurance, Retirement and Land and the Office of Finance and Budget said the government of Guam collects 10 percent of every dollar that is pumped into the coffers.

In his findings, Pangelinan noted that the DEIS analysis used calculations based on collections between 42 and 49 percent of the estimated gross island product.

“There is something in their financial model that is causing a wide variance in the ratio, but because the methodology and actual model were not disclosed in the DEIS, there is no way for us to even scrutinize the estimates,” Pangelinan said.

And while he agrees that increasing the island’s economy is an important asset, however, he believes that GovGuam should balance that growth with “the protection of the environment, culture, and quality of life of island residents.”

He has already sent out letters to various organizations in the private sector on the matter as well as the University of Guam, all govGuam agencies, the Government Accountability Office and the Department of Defense requesting for a review of the estimates to confirm his committee’s findings.

“The core questions that must be answered with some degree of comfort before we get to the table are the cost and future revenue collections that will result from this buildup,” he concluded.

Senator Pangelinan Says Military's Estimates of GovGuam's Revenues During Buildup are Flawed

Senator Pangelinan Says Military's Estimates of GovGuam's Revenues During Buildup are Flawed

Guam - Senator Ben Pangelinan has issued a release saying the military's estimates of GovGuam's revenues during the military buildup are flawed.



According to Pangelinan government economists and bureacrates use a simple financial ratio of general tax revenue to gross island product. The rule of thumb is GovGuam collects 10% of every new dollar invested into the economy after it multiplies through. According to the Draft Environmental Impact Statement Govguam will collect between 42% to 49% of the estimated Gross Island Product during the buildup. Because of this the senator has sent leters to several experts in the private sector, UOG, GovGuam, the Government Accountability Office and the Department of Defense asking them to provide an analysis of the revenue estimates in the DEIS.

Written by :
Clynt Ridgell

GEDA: Buildup Impacts Will Exceed Benefits

GEDA: Buildup Impacts Will Exceed Benefits

Guam - Last week the Guam Economic Development Authority released some of it's findings on the Draft Environmental Impact Statement of the military buildup.



The bottom line according to GEDA is that the economic impacts will exceed the economic benefits unless mitigation measures are identified and included in the Final EIS.

During Governor Bordallo's administration Joseph Bradley was the Chief Economist for GovGuam. Recently he's given presentations to the civilian military task force on the economic portion of the Draft Environmental impact statement. He's come to some of the same conclusions that the Guam Economic Development Agency has reached. For example concerns that the economic impacts will outweigh the economic benefits. Many in the local business community have touted the boost that servicemen and women will have on the economy. The DEIS however states that only 12% of military payroll will be spent in the local economy. Bradley says "I don't think that Tumon is exactly what a sailor on shore leave is looking for anyway." Instead Bradley believes many of the servicemen and women will be craving the forms of food and entertainment that they are used to in the states. While Tumon offers some of this Tumon was developed with the Japanese tourist in mind.

Bradley says one way to mitigate this is for local businessemen to begin creating attractions and entertainment that servicemen will want to go to. Another concern of GEDA's is that according to the DEIS after the population decreases the island of Guam will have an excess or oversupply of housing. Bradley says this could mean abandoned houses and even commercial buildings that is unless we find a way to mitigate these potential negative impacts. Bradley has some of his own ideas for example he says GovGuam could work with the federal governement to develop programs to convert excess housing into affordable or low cost governement housing.

Finally there is the recession like period that will occur according to the DEIS after the buildup ends and the population diminishes. The boom itself will be three times larger than the tourism boom of the 80's. While bradley says that the recession will still be better than Guam's current economy it's how fast and how steep the economy recedes which is what will really cause problems.

Written by :
Clynt Ridgell

Pangelinan Finds Flaws In DEIS Estimate of GovGuam Revenues

Pangelinan Finds Flaws In DEIS Estimate of GovGuam Revenues

Guam - The Legislature's Appropriations Committee Chairman, Senator Ben Pangelinan, says he has already found flaws in the DEIS projections of Local Government Revenues [Section 4.3.3].

In a release, Senator Pangelinan explained, “We used a simple financial ratio of General Tax Revenue to Gross Island Product that has served the government economists and bureaucrats well over the years when assessing new investment into our economy. The rule of thumb is that the government of Guam collects 10% of every new dollar invested into our economy after it multiplies through.”

General Tax Revenue in the more conservative constrained DEIS analysis show collections that are between 42 to 49% of estimated additional Gross Island Product related to the buildup. “There is something in their financial model that is causing a wide variance in the ratio but because the methodology and actual model were not disclosed in the DEIS there is no way for us to even scrutinize the estimates,” according to Pangelinan.

Local business organizations continue to lobby support for the buildup as positive because of the economic growth that will occur as a result of the Marine relocation from Okinawa. Senator pangelinan agrees that growing the economy is important but that the government of Guam must balance economic growth and protection of the environment, culture and quality of life of island residents.

Senator Pangelinan concluded “Last week I sent letters to several experts in the private sector, the University of Guam, GOVGUAM, the Government Accountability Office and the Department of Defense asking them to provide analysis of the revenue estimates to confirm our findings. The core questions that must be answered with some degree of comfort before we get to the table are the cost and future revenue collections that will result from this buildup.”

For further information, please contact the Offices of Senator ben pangelinan at 473-4236 or email at senbenp@guam.net

Written by :
News Release

Pangelinan finds revenue flaw in DEIS

Pangelinan finds revenue flaw in DEIS

Posted: Feb 02, 2010 4:37 PM
Updated: Feb 02, 2010 4:37 PM

by Nick Delgado

Guam - Committee Chair on Finance Senator Ben Pangelinan has discovered that the estimates in Volume 9, Section 4.3.3 in the Draft Environmental Impact Statement that deals with estimated local government revenues appears to be flawed. Pangelinan states the rule of thumb is that GovGuam collects 10% of every new dollar invested into our economy after it multiplies through.

He adds that the general tax revenue in the more conservative constrained DEIS analysis show collections that are between 42 to 49% of estimated additional gross island product related to the buildup.

In a news release Pangelinan states, "There is something in their financial model that is causing a wide variance in the ratio, but because the methodology and actual model were not disclosed in the DEIS there is no way for us to even scrutinize the estimates." While Pangelinan agrees with that growing the economy is important, he states that GovGuam must balance economic growth and protection of the environment, culture and quality of life for island residents.

He also sent letters to several experts in the private sector, the University of Guam, GovGuam, the Government Accountability Office and the Department of Defense, asking them to provide analysis of the revenue estimates to confirm his findings.

GovGuam helps students comment on DEIS

GovGuam helps students comment on DEIS

Posted: Jan 31, 2010 1:22 PM
Updated: Jan 31, 2010 2:58 PM

by Michele Catahay

Guam - While residents from various local groups have been reviewing the draft environmental impact statement for the marine relocation from Okinawa to Guam, concerns have been raised on whether the island's schoolchildren know much about the move. The Governor's Office is spearheading efforts to get the youth involved in reviewing the Draft Environmental Impact Statement and providing written comments.

Bureau of Statistics & Plans Director Tony Lamorena says his agency, along with Adelup, will be spearheading efforts to engage the island's high school students in going over the Draft EIS. Lamorena says students need to be involved because in four years, these individuals are going to be a part of the workforce.

"We want them to be a part of the process. We want to hear their comments, what their issues are and what their concerns are. What we're doing is on February the 5, we're hosting an event. We're working with the Department of Education and all the private schools to identify because of space availability, a number of students at their respective schools," he said.

Lamorena says they will be discussing topics ranging from natural resources and the environment as well as social economic issues relating to the buildup. He says the key is to get their input so they could submit the comments on paper. On February 8-10, he says local officials will be out in the schools to teach students about the DEIS.

"We're getting a lot of adults and a lot of University of Guam students attending at the other events within the villages and the Legislature, but no one has really focused on specifically going out into the high schools. So what we're doing right now is we're making an active effort to go after the high school students and getting their comments," Lamorena noted.

Because it's such a massive document, Lamorena says agency heads and subject experts will be on hand to start the dialogue with students to generate interest. "We're going to make it as user friendly as we can. We don't want them to be intimidated by the document. Really, we want their comments to be noted so that the department of defense has to respond to their concerns," he said.

Bordallo: Timeline 'ambitious': Residents speak out on buildup at town hall meetings

Bordallo: Timeline 'ambitious': Residents speak out on buildup at town hall meetings

By Laura Matthews • Pacific Sunday News • January 31, 2010

Guam Delegate Madeleine Bordallo yesterday said she believes the military buildup will have to be extended beyond its current 2014 deadline.

"We feel this is big," Bordallo said. "And we got delays along the way, and so we never thought -- even from the beginning -- that it would ever conclude by 2014."

The congresswoman echoed the sentiments of Gov. Felix Camacho at a town hall meeting yesterday at the University of Guam, where she held the first of five public hearings on the buildup.

These town hall meetings are another opportunity for residents to comment on the Draft Environmental Impact Statement before the Feb. 17 deadline.

"The Congress and the governor control the breaks and spending for this buildup," Bordallo said. "And the timeline, we feel, will ultimately have to be pushed back. I mean it is very ambitious."

Camacho wrote Navy Secretary Ray Mabus on Thursday asking him to delay the arrival of 8,000 Marines and their 9,000 dependents.

Additionally, Guam's population is about to surge by approximately 80,000 in 2014 -- an increase of almost half the current population. This increase means that the island will get 20 years of growth in five years.

The buildup will create 33,000 new jobs for civilian workers by 2014, which is expected to generate a tax revenue of $325 million for the GovGuam that year alone, according to the draft EIS report. That is a 60 percent increase in GovGuam's current annual tax revenue.

Guam residents will take up about 2,000 direct on-site construction jobs for the Marine Corps facilities between 2013 and 2014. Furthermore, excluding on-site construction jobs, locals will only benefit from 2,566 jobs during the 2014 construction boom. The related jobs "include civilian military jobs, direct from purchases jobs and indirect or induced jobs," the draft EIS said.

Camacho said the delay will help more residents qualify themselves for the jobs.

"There are shortages all throughout the skilled areas and that is evident by the number of people we have to bring in," Camacho said. "What this means is that we can better prepare our kids and they can train up. Rather our kids can get into these industries."

But Bordallo said the number of workers coming on the island can be controlled by the governor himself.

"The governor can control the guest worker numbers because he signs certification," she said.

Whether or not the number of workers certified to come to Guam for the buildup is lessened, there are still other issues that must be dealt with.

The island will have to drill more wells to accommodate the additional population, and expand the commercial port to handle incoming construction material.

Moreover, the Department of Defense plans to widen an existing shipping channel to fit one of its carriers, and make a turning basin near the wharf that will dredge about 2.3 million square feet of sea floor. Nearly 35 percent of that area is covered in coral reef that will be permanently destroyed, the draft EIS stated.

This doesn't sit well with Sen. Benjamin Cruz, the chairman for the Committee on Tourism, who on Friday said he appropriated hundreds of thousands of dollars to the Guam Environmental Planning Agency to determine if radioactive material is present in the area.

However, the agency has yet to give him an answer, and yesterday he pressed the congresswoman to look into the dredging plans on island.

"Your deafening silence in not speaking out about the dredging of the coral, it's not only disturbing, it is unconscionable," he said. "And you won an award last year for this. You probably need to return the award."

Bordallo assured Cruz that she has many professionals looking into the issue.

But this isn't enough for some residents. In fact, they just want the military to just get out.

At a rally yesterday in Anigua for the "Freedom To Make Our Own Decisions", Trini Torres, a leader for the Taotaomona Native Rights and Chamorro Nation, said residents must unite to protect the island from the buildup.

The group was dedicating the new Plasan Maga' Lahi Hurao beach park, which is across the street from Pigo Cemetery, to Hurao, the leader of the Chamorro people during the Chamorro Spanish War, which began in 1671. Torres said Hurao fought for the freedom of the Chamorros, which the group is now asking from the United States.

"We don't want to be a colony anymore," she said.

Torres said the group wants the island's people to unite to protect the island from the buildup.

"This buildup, we are afraid of it," she said. "How can we survive when we lose our island? The U.S. needs to just get out."

Other residents like Will Calori, 29, of Mangilao believes that the draft EIS contains inaccurate information, which makes them unable to make valid comments.

Clutching his 2-year-old son in his arms, the businessman said if he only cared about making money today, then he probably wouldn't give the issue as much thought as he is now.

"We're not getting the accurate information and we aren't able to make a thorough decision on what is going to happen," he said. "I think (children) are the reason we are here. I want his kids to enjoy this island after it's all done."

The draft EIS provides a detailed account of how Guam's community will be affected through changes caused by the buildup. JGPO and a team of socioeconomic experts collected feedback from the Guam and CNMI governors, the Chambers of Commerce, other island resources and community experts in its assessment of what kind of impact the relocation of Marines to Guam will have on the island's education, health care services, employment opportunities, property values, crime, cost of living and other socioeconomic issues.

PNC :: GEDA: Buildup Comes With Some Big Negatives

PNC :: GEDA: Buildup Comes With Some Big Negatives

Friday, 29 January 2010

Guam - GEDA Administrator Tony Blaz has submitted his top concerns over the impact of the military buildup to Senator Frank Aguon Jr.'s Committee on Economic Development.

In his letter to Aguon, Blaz lists the following impacts and concerns:

*GRT, corporate income taxes and personal income taxes could be as high as $423 in 2014 and then declining to $104 million in 2017.

*There may be a time lag between when GovGuam revenues are needed and when they are available for use.

*The buildup would generate more demands on Guam for roads, ports sewer, water, power and other infrastructure and will increase the pressure for substantial borrowing.

Read GEDA's list of concerns and impacts

*Members of the military do not spend a great deal of their income in the local economy, especially if they are housed on base and buy their groceries on base. Currently only 12% of the enlisted military income is spent on Guam.

*The average annual income of military personnel is just $29-thousand dollars. 11,182 active duty personnel translates into a total annual payroll of #323 million. Just 12% will be spent in the local economy.

*Housing for the military will be provided by the military, not the Guam private market. Local shippers and wholesaler will increase sales to the military bases but when imported goods are sold on base, most of the value of those sales won't be realized and profits won't be reinvested locally.

*There will be a "recession-like" period after 2014 when business will have to lay off workers after the peak buildup period.

*Guam workers will likely see the cot of living continue to rise faster than their incomes.

*The cost of living during the construction phase could negatively affect households on fixed incomes, although other households could benefit from rising wages.

*Hotels could benefit conssiderably, but the service sector could undergo a difficult period due to loss of labor to higher paying jobs and pressure or increased wages.

Written by : Kevin Kerrigan