"Final budget submission further addresses Deficit Elimination and provides partial funding
for long-delayed government wide pay adjustments."
February 1, 2010
The Governor Felix P. Camacho sent the
proposed 2011 Budget of the Government of Guam to the Guam Legislature, noting it prioritized the critical areas of education, health, and public safety. The new budget also addresses deficit reduction and provides for a partial funding of the long overdue pay increases for Government of Guam employees as recommended by the Hay Study. “While the proposed level falls far short of what may be needed for full implementation, it is a start, and I further propose and included a provision that provides that revenues collected beyond that adopted for FY 2011 is dedicated for the same purpose,” wrote Governor Camacho.
The proposed Fiscal Year 2011 budget projects revenues of $600,811,600, an 8% increase from the levels adopted in FY 2010. The projections are conservative as it assumes visitor arrivals will remain flat in spite of recent improvements and it takes into account only those Department of Defense projects that will proceed even if there are further delays on the record of decision.
“The projection assumes visitor arrivals will remain flat, although recent months have shown improvements,” wrote Governor Camacho in his FY2011 Budget Transmittal letter. “Furthermore, it was derived with a more cautious view of the military buildup projects and timelines.”
The breakdown of the FY2011 Executive Budget is $246 million, or 34% for Education; $101.6 million, or 14% for Health, and $107.9 or 15% slated for Public Safety. The remainder of the proposed budget goes to other agencies and for other purposes, including 9% for Debt Service, 2% towards Deficit Reduction, and a 2% Government-Wide Pay Study Implementation.
Governor Camacho is optimistic that Guam’s financial situation will continue to improve in the coming years as capital improvements projects related to the American Recovery and Reinvestment Act of 2009 as well as appropriations from the 2010 Defense Authorization Act continue to generate increased revenues and new jobs.
