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All Appropriation Measures Vetoed |
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Governor also vetoes Bill No. 195
March 18, 2008
With no revenues to support proposed appropriations by the Legislature, Governor Felix P. Camacho vetoed all appropriation measures this afternoon.
"[W]hile I recognize the importance of the programs and initiatives contained in these bills, I cannot place this government in a deeper deficit position," Governor Camacho wrote to Speaker Judith Won Pat in his veto message.
The appropriations, if passed, will add $36 million to the budget, which already is deficient by more than $40 million. There are no cash resources to support these appropriations. The government's financial condition is aggravated by court orders, including yesterday's receivership issued on the closure of the Ordot Dump and the opening of a new landfill. "This receivership jeopardizes our entire government's fiscal stability and our financial outlook in the bond market," Governor Camacho wrote.
"The passage of legislation that increase the gap between appropriations and cash resources speaks to the unwillingness of the Legislature to recognize the reality of our fiscal condition and the very real impact it is having on our entire island," Governor Camacho wrote. "Time and again, I have stressed the urgency of focusing our collective efforts on resolving the longstanding structural imbalance that a flawed budget process has created over the years."
Governor Camacho cautioned senators of the $40 million shortfall when the Fiscal Year 2008 budget was passed. The Administration repeatedly has warned about the financial consequences of this budgetary imbalance, especially on health and safety agencies.
"I and members of my fiscal team have warned of the very real and direct negative impact the financial condition of this government will have on our overall ability to provide even the most basic critical services to our community," Governor Camacho wrote. "Yet, empty appropriation measures continue to make their way out of the Legislature and on to my desk for action. [M]embers of the Legislature continue to ignore the warnings of my Administration and the financial markets by attempting to obligate this government to more than it can obviously pay."
Governor Camacho introduced a Fiscal Recovery and Deficit Elimination Plan last year. The plan, if passed, would have balanced appropriations and revenues this fiscal year and provided the fiscal means to pay down the deficit every year until its elimination in 2014. The Legislature rejected the plan.
Governor Camacho continually has asked the Legislature to address this issue with another plan that meets the same objectives of balancing the annual budget, providing for the true operational needs of the government, restructuring and paying down the debt and creating cash reserves. A plan has yet to be proposed by the Legislature.
"I sincerely hope no attempts are made to override my veto," Governor Camacho wrote. "I ask that you and your colleagues take seriously the federal receivership this government has been placed under and begin to work on a comprehensive plan to address both our short and long term financial challenges."
Veto of Bill No. 195
Governor Camacho also vetoed Bill No. 195, which would have permitted investments and interest earned from bond proceeds accruing interest in the bank to be appropriated. The proceeds are being held in a bank account for use by the Guam Public School System and for the permanent injunction. Senators want to use the money for COLA.
"Southern High School is one of eight schools in dire need of repair because of health and public safety conditions," Governor Camacho wrote to Speaker Won Pat. "This money could be used to ensure the health, safety and welfare of the children who attend classes and the adults that work at these facilities."
Most of the bond proceeds allocated for COLA already has been disbursed to retirees. Governor Camacho supports the appropriation to retirees of interest earned on the undisbursed proceeds allocated for COLA.
"While I am not opposed to permitting interest earned to fund additional payments to COLA class awardees, it is only fair that the earnings be distributed pro rata to the corresponding distribution of the bond proceeds," Governor Camacho wrote. "I humbly ask [the Legislature] to amend this measure and also provide funding through the bond earnings to these critical services."
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