by Sabrina Salas Matanane, KUAM News Thursday, May 29, 2008 Subscribe to Sabrina's newsfeed   E-mail this article Printable version KUAM Toolbar Web Widgets Get RSS headlines

Governor Felix Camacho will be submitting a solution to the 29th Guam Legislature today to address to the government of Guam's outstanding $13 million streetlights arrears. The Governor in an interview with KUAM this morning said after meeting with Democrat Speaker Judi Won Pat and Vice Speaker David Shimizu he will request for a loan to pay off the debt, this in order to thwart a 6% base rate increase that will go into effect on June 1st, if no such payment is made to the Guam Power Authority.

The Guam Power Authority with the Public Utilities Commission's approval has given the government until June 1st to pay $7.9 million, which is a portion of the amount owed for village streetlights. More than 500 streetlights have been disconnected to date because of GovGuam's failure to address the debt over the last 12 years. While a roundtable meeting was held by Speaker Judi Won Pat on Wednesday, the dialogue between the Department of Administration, BBMR, and Senators failed to produce a financial solution to the dilemma.

According to the Governor his solution includes borrowing up to $13 million to pay off the government's entire debt for village streetlights. He will also recommend the legislature approve a mechanism in which he will be allowed the flexibility to use $2 million from the projected surplus of $16 million in general fund revenue for this fiscal year to address Department of Public Works shortfall in funding for streetlights. The Department of Public Works has stated publicly that in July it will run out of funding to continue paying for village streetlights unless such an additional appropriation is made. If DPW runs out of money, the Guam Power Authority has indicated that it will disconnect every single streetlight on Guam for non–payment.

Senators, who are currently in session, could possibly discuss the Governor's proposal. If it fails to garner support from the legislature, there's another proposal that will be entertained during a public hearing scheduled for tomorrow by the Committee on Finance and Taxation. Bill 303 seeks to prioritize the payment of GovGuam's general deficit to ensure the payment for streetlights arrearages owed to GPA is paid expeditiously.

A public hearing is scheduled on the legislation for Friday at one o'clock in the afternoon.