How will an already financially strapped Guam Department of Education cover the upfront costs for federally funded projects under a new U.S. Department of Education policy on COVID-19 relief funds?

This is the critical question that island leaders are still trying to answer.

“We have to pay upfront and then ask for reimbursement, and so right now, that has put us in a bind with the current projects that are ongoing–especially the refurbishment of the 12 schools which are funded by ARPA and covid money,” said Senator Vince Borja, Oversight Chair on Education in an interview with our partners on the point.

He, along with other lawmakers and government agency heads, rolled up their sleeves during a work session Tuesday, discussing potential solutions to move forward.

“We’re looking at what GDOE currently has allotted to them for the fiscal year and maybe giving them an advance in their allotment to support it,” said Sen. Borja. “Moving money from other areas within GDOE.” 

While Borja notes Governor Lou Leon Guerrero has offered her assistance, another potential solution could be amending existing laws to grant the Maga'haga more authority.

“We amend the law or appeal the law that prohibits her from meddling with the finances of GDOE,” said Sen. Borja. 

In the meantime, he stated that tapping the Rainy Day Fund for some $30 million to support GDOE remains the last-resort option as he's been advised that such a move could impact Guam's bond market and credit rating.

“We’ve been warned against. Could we do it? absolutely, but we also want to ensure we don’t hurt anything in regards to the bond market,” added Borja.