Line item budget over lump sum budget allows greater accountability

September 4, 2009

Governor Felix P. Camacho today signed the FY 2010 budget bill, now Public Law 30-55, which will go into effect on Oct. 1, 2009. Bill 58-40 (COR), passed by I Mina’ Trenta na Liheslaturan Guåhan on Aug. 28, 2009, appropriates approximately $540 million to the government of Guam’s executive, legislative, and judicial branches.

“This year’s budget process is a great example of the legislature and the executive branch working together to best serve the people of Guam,” said Governor Camacho. “I commend Speaker Judi Won Pat; the committee chair, Sen. Ben Pangelinan; and members of the legislature for passing the budget and giving me adequate time to review the bill with my advisors. I want to also thank my staff for working closely with our policy makers to ensure we appropriately address the financial needs of the next fiscal year.”

According to Bertha Duenas, director of the Bureau of Budget and Management Research, this year’s budget, in contrast to years past, is a line item budget.

“The last time we used the line item format was sometime in the late 80s or early 90s. Breaking down the budget by line item, as opposed to lump sum for each agency or department, will allow greater accountability on how money is being spent,” Duenas said. “Significant changes in this budget aim to make our government run more efficiently as we provide essential services to our community.”

Governor Camacho in his transmittal letter to Speaker Won Pat stated he was pleased to see that all potential revenue increases have been directed to the areas of education, health, and public safety. The FY 2010 budget provides $233 million for education, $88 million for health, and $74 million for public safety.

“Over half of the appropriations contained in this budget are earmarked toward education, health, and public safety and demonstrate our government’s continued commitment to support these critical departments and agencies,” said Governor Camacho. “I look forward to continuing to work closely with the legislature on the issues facing the people of Guam.”