Calvo administration averts possible furloughs - KUAM.com-KUAM News: On Air. Online. On Demand.

Calvo administration averts possible furloughs

Posted: Apr 13, 2018 5:01 PM Updated:

Furloughs averted. The administration making that announcement after some pressure is taken off from the government's financial crisis which threatened that among other cutbacks. They cancelled the proposal, no doubt a big weight off the shoulders for many government workers.

Government of Guam , rest easy. Governor Calvo today announcing several factors that allowed him to make the call to cancel any furloughs. Bureau of Budget & Management Research's Lester Carlson said, "First and foremost was the cooperation that he got from the bipartisan support at the legislature for the Business Privilege Tax increase now coupled with the implementation of a sales tax to help restore revenues to the government."

The threat of furloughs loomed after cutbacks were announced to help with the government's financial crisis.

Carlson says the commitment to continue with the austerity measures and reduction of their operational footprint by $30 million for the current fiscal year played a big role in the furlough cancellation. He says the H-2 approvals were also a plus, adding, "We are very optimistic we will soon see a return to normalcy with respect to construction. We believe the military projects will benefit for these H2 workers and that our economy will also be directed benefited from this H2 approval process."

Another anticipated financial gain - the administration now implementing a tax amnesty. The program would collect past due taxes for tax years 2016 and prior. Carlson explained, "There are multiple people primarily at the legislature but also in the public sector that were asking the governor to consider a tax amnesty program because the amounts due and ability done previously to afford this cash injection to our government but also to get this weight off some people's shoulder."

Efforts he says to finally gain some cash relief so that the government can begin its work on getting its operations back to normal.

Carlson adds the administration is against any legislation introduced that he says would water down the new tax increase law.

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