Is your Guam National Guard ready for what’s next? Lawmakers put its leadership, funding, and readiness under a microscope during an oversight hearing on Friday in preparation for a new budgeting process kicking off this year.

At a Friday oversight hearing, Senator Shawn Gumataotao and fellow lawmakers questioned newly-confirmed adjutant general Brigadier General Karin Watson and her team on readiness, resources, and accountability. At the center of the discussion - a shift to performance-based budgeting for Fiscal Year 2027.

The goal: not just tracking spending, but measuring results. The general said, “Our goal is simple, but ambitious. It’s to shift the conversation from ‘How much did we spend?’ to ‘What did we achieve for the people of Guam?’”

Watson says the PPB approach will help justify local investments – especially as the territory is required to match federal funds, often at a 75/25 split. “PBB provides a data-driven junction or justification for our local match. It allows us to show that every local dollar spent unlocks significant federal investment," she detailed.

For FY2027, that includes a local match of more than $500,000 for facility maintenance, plus additional costs for Air National Guard operations. The Department of Military Affairs says its focus moving forward will center on readiness excellence, resource optimization, and community resilience.

Officials also emphasized the importance of their cooperative agreement with the National Guard Bureau – a partnership that helps fund operations and keep the force mission-ready. U.S. physical and property officer for the Guam National Guard Colonel Christian Cruz said, “This synergy is the engine that ensures the guam national guard remains trained, equipped, and perpetually ready to answer the call, whether it comes from our island or our nation.”

Despite that support, officials acknowledged challenges – including timing gaps in meeting local match requirements. Still, the Guard points to a strong return on investment – bringing more than $146M into Guam’s economy last year, while maintaining a force of about 1,200 trained personnel ready to respond to emergencies.

But the hearing wasn’t without controversies.

Lawmakers raised questions about the transition in Guard leadership following the resignation of former Adjutant General Michael Cruz – as well as his memorandum detailing concerns about the change. Watson maintained the process followed proper protocol, saying, “There was no violation of any regulation in the manner in which I was brought in as the TAG.”

Senator Telo Taitague also turned attention to ongoing legal concerns involving quartermaster Kathleen Peredo, who has been named as a defendant in the Pandemic Unemployment Assistance fraud case currently in the U.S. District Court of Guam. “My concern is the jeopardy of federal funds and the concern of having a quartermaster who’s actually been indicted," the senator noted.

The TAG replied, “As far as I’m concerned, to put your mind at rest, I’ve had no issues with Ms. Peredo’s performance as my quartermaster. There was never a concern that was brought up to me from the federal side.”

And as questions continue, Watson says one thing remains steady – the force itself, stating, “I’ve been at their drills, whether it’s Army or Air, and I’ve engaged with the soldiers. I can say that morale is high in the organization and our units are ready to do their mission, whether on island, a state mission, or anywhere else on a federal mission.”