Administration needs $387M for tax refunds - KUAM.com-KUAM News: On Air. Online. On Demand.

Administration needs $387M for tax refunds

Posted: Updated:

by Mindy Aguon

Guam - The Calvo Administration's plans to borrow $387 million that would solely go to pay past due income tax refunds and not other obligations of the government that have gone unpaid. Representatives from the Guam Economic Development Authority gave a presentation to lawmakers this afternoon on the financing plans and the costs associated with obtaining that money on the bond market. 

GEDA Business Development Manager Lester Carlson explained that of the $387 million the Administration intends to borrow, $280 million would be used to pay unpaid tax refunds while the remainder of the money would go to pay interest. Senator Ben Pangelinan asked, "There's no other past due obligations such as COLA, such as prior year obligations, that will be funded from this borrowing, is that correct?", to which Carlson replied. ""No, not from this scenario."

Lawmakers also expressed concerns about the impact the proposed borrowing would have on the government's credit rating and had concerns that GovGuam would be borrowing to pay the interest on the restructuring of the bonds. Concerns were also raised about why money would need to be set aside for American Reinvestment and Recovery Act-related expenses, something GEDA officials said they would research.

  • NEWS HEADLINESMore>>

  • Miss Earth Guam Emma Mae Sheedy holds book drive

    Miss Earth Guam Emma Mae Sheedy holds book drive

    She did it all For the love of books. Miss Earth Guam 2018 Emma Mae Sheedy held a book drive at UPI Elementary this week. For over one month, she collected more than 13 hundred lightly used books to help teach children the importance of reading and reusing. Emma also posting about her time with the youngsters on social media, stating, "The smiles on the students faces were unforgettable and remind me why I love being Miss Earth."More >>
    She did it all For the love of books. Miss Earth Guam 2018 Emma Mae Sheedy held a book drive at UPI Elementary this week. For over one month, she collected more than 13 hundred lightly used books to help teach children the importance of reading and reusing. Emma also posting about her time with the youngsters on social media, stating, "The smiles on the students faces were unforgettable and remind me why I love being Miss Earth."More >>
  • Utilities leaders detail increase to power rate

    Utilities leaders detail increase to power rate

    Valentine's Day may have just passed, but you're probably not loving your power bill. In an informational briefing today, GPA General Manager John Benavente and CCU Chair Joey Duenas appeared before Senators Telena Nelson and Regine Biscoe Lee to discuss current GPA concerns - one of them being power rate increases. As of this month, the fuel surcharge known as LEAC was raised to 14.7 cents per kilowatt, adding about $30 to the average power bill. And starting May 1, residents can an...More >>
    Valentine's Day may have just passed, but you're probably not loving your power bill. In an informational briefing today, GPA General Manager John Benavente and CCU Chair Joey Duenas appeared before Senators Telena Nelson and Regine Biscoe Lee to discuss current GPA concerns - one of them being power rate increases. As of this month, the fuel surcharge known as LEAC was raised to 14.7 cents per kilowatt, adding about $30 to the average power bill. And starting May 1, residents can an...More >>
  • Reprioritization authority main component of Aguon bill

    Reprioritization authority main component of Aguon bill

    Facing tough decisions after looming budget cuts, one lawmaker introduced a measure that would give GovGuam authority to reprioritize. Senator Frank Aguon Jr. introduced Bill 247 known as the Government Priorities Act of 2018. If signed into law, it would put Education, Health, and Public Safety as top priorities and group other agencies that can possibly be merged or even abolished. The Act would allow the Governor to take those necessary measures by means of an executive order. Yo...More >>
    Facing tough decisions after looming budget cuts, one lawmaker introduced a measure that would give GovGuam authority to reprioritize. Senator Frank Aguon Jr. introduced Bill 247 known as the Government Priorities Act of 2018. If signed into law, it would put Education, Health, and Public Safety as top priorities and group other agencies that can possibly be merged or even abolished. The Act would allow the Governor to take those necessary measures by means of an executive order. Yo...More >>
Powered by Frankly