| HAGATNA, GUAM – As taxpayers, we are shocked and disappointed at the passage of the FY 2025 budget bill, the largest budget bill ever presented by the Guam Legislature. The $1.3 billion budget appropriates $40 million more than the original budget as transmitted by the Governor in February this year and $140 million more than the FY 2024 budget act. Yet many agencies and departments are underfunded, making it difficult for them to meet their critical mandates. Bill No 236-37 passed with a narrow margin of 8 yeas to 6 nays, with one member excused. Despite its passage, the budget has been met with significant concerns, particularly regarding the underfunding of critical agencies, anticipated crisis management needs for Guam Memorial Hospital, and the likely necessity for a supplemental budget. These issues highlight the potential challenges and implications that the Legislature and the people of Guam will face in the coming fiscal year. One note of interest in this budget pertains to the anticipated excess of revenues. Any excess funds beyond $22 million allow for reimbursement as determined by the Guam Legislature to the people. Money back to the People Over the past several weeks, the Chamber has sent letters and news releases to appeal to the Guam Legislature to exercise fiscal prudence, cap the budget at the 2024 fiscal year level, and consider providing money back to the people. We commend Senator Frank Blas, Jr. and his seven colleagues from the floor who passed Senator Blas’ amendment to give excess revenues back to Guam’s residents. This amendment states that any excess over $22 million, GovGuam will return monies to the people via programs to include public health, the Guam Memorial Hospital Authority, economic stimulus disbursements for on-island retail purchases only, inflation relief payments, and utility payment reduction program for power, water, and trash collection, and business development or assistance programs. This return of funds could significantly alleviate financial burdens and stimulate the local economy, bringing hope for an immediate brighter future for Guam’s residents. Underfunding of Essential Public Services One of the most pressing concerns regarding Bill No. 236-37 is the underfunding of crucial government services, most notably the Department of Education (DOE). The budget allocates $47 million less than what was requested by DOE. This shortfall could have severe repercussions for the island’s educational system, which is already grappling with outdated facilities, insufficient resources, and staffing shortages. DOE is responsible for providing quality education to thousands of students across the island, and any reduction in its budget could lead to larger class sizes, fewer programs, and a lack of critical resources such as textbooks, technology, and the like. Underfunding the agency would impact the maintenance and improvement of school facilities, many of which are still in dire need of repairs and upgrades. By not fully funding DOE’s request, the Legislature risks compromising the quality of education on the island, which could have long-term negative effects on student outcomes and the future of our workforce. Anticipated Crisis Management for Guam Memorial Hospital (GMH) Another significant concern is the anticipated need for crisis management at Guam Memorial Hospital. GMH is the island’s only public healthcare facility, providing essential medical services to the population. However, the hospital has been struggling with financial difficulties, aging infrastructure, and staffing challenges for years. As an autonomous agency, the hospital is expected to cover the costs of its operations. Historically, however, GMH has sought the assistance of the Guam Legislature and the Governor’s office to supplement its budget shortfalls. News reports cite that the hospital has requested an additional $60 - $70 million to maintain operations. Without sufficient funding, operational, and acute fiscal management, GMH may face even more difficulties than today. The hospital's financial instability could lead to delays in care, reduced services, and even the potential closure of critical departments. The government’s failure to allocate adequate resources to GMH has resulted in a healthcare crisis on the island, particularly in the event of a public health emergency or natural disaster. The anticipated need for extreme crisis management at GMH underscores the urgency of addressing the hospital’s fiscal and management needs to ensure that it can continue to serve the community effectively. Given the underfunding of essential agencies and the anticipated challenges at GMH, the Guam Legislature must urgently address these issues through a supplemental budget later in the fiscal year. Immediate action is needed to prevent further deterioration of public services and health care. A Budget That Fails Guam’s Future The passage of Bill No. 236-37 signals a troubling shift in priorities for Guam’s future. In a time when our economy is buckling under the weight of inflation and financial strain, this $1.3 billion budget – the largest in Guam’s history – misses the mark. Instead of strengthening essential public services like healthcare and education, it props up bloated, underutilized offices and programs that do little for the community. The real priority should have been slashing waste and reallocating funds to the areas that need them most. Fiscal irresponsibility is no longer just a policy issue – it’s a direct threat to the well-being of every taxpayer. Guam deserves better, and it’s time our elected officials rise to that challenge. | 
