KUAM.com-KUAM News: On Air. Online. On Demand.Bordallo defends use of Compact impact funds

Bordallo defends use of Compact impact funds

by Michele Catahay

Congresswoman Madeleine Bordallo has clarified her position on the Guam Department of Education financial crisis to Governor Felix Camacho. According to a release from her office today, Bordallo states that although a local solution for bridge financing would be ideal, an alternative based on Compact impact funds is available to the governor to avert layoffs.

It would serve as a bridge funding until the GDOE receives its Fiscal Year 2010 consolidation grant that would prevent over 300 federally funded employees from being laid off.  On Friday the governor stated that some of these grants could go to help health care and public safety.

Bordallo wrote in a press release, "I proceeded with securing Assistant Secretary Babauta's commitment and U.S. Department of Education's cooperation because whether or not (Governor Camacho) used the authority and flexibility offered to (him), or if (he) used local resources instead, it meant that there would always be a safety net for the next few months that would allow Guam DOE to cancel layoff notices."

She added, "I agree with Governor Camacho that some Compact impact grants for health-related needs, court-ordered consent decree obligations and contractual obligations for prior school construction are not available for reprogramming. However, I would disagree that there are no Compact impact grant requests, such as the Dededo sports complex, that cannot be deferred for a few weeks until the reprogrammed funds are available to Guam DOE. However, if the Compact-impact funds are not needed because local funds are available for bridge financing, then there is no need to make these difficult choices.

"In addition, I have also received assurances from USDOE the that they would work expeditiously to provide Superintendent Dr. Nerissa Underwood with the guidance and information she needs to begin the process to contract a third party fiduciary agent."

Congresswoman Bordallo also clarified that USDOE will work with Guam DOE to reprogram Fiscal Year 2008 and Fiscal Year 2009 grants.  In addition, Congresswoman Bordallo received assurances that USDOE will act favorably on a request by Superintendent Underwood to incur costs prior to the award to the FY2010 consolidated grant, which would then allow for reimbursement of local or federal funds advanced to Guam DOE.