Governor Calvo says he'll nix a budget using uncollected taxes a - KUAM.com-KUAM News: On Air. Online. On Demand.

Governor Calvo says he'll nix a budget using uncollected taxes as appropriations

Posted: Aug 06, 2018 4:00 PM Updated:

The governor has threatened to veto any budget bill that uses uncollected taxes as an appropriation source. Calvo scolded lawmakers for proposals that slash funding for three key agencies, forcing them to collect outstanding taxes to fully fund their operations.

Calvo minced few words in criticizing the legislature's latest plan to balance the FY19 budget, saying, "If they are to pass the amendments that are being proffered by Senator [Michael] San Nicolas, you're basically taking out the driver, the gas, and the engine. It'll be a very difficult, if not impossible, task."

He is referring to the senator's call for bare bones budgets for the Governor's Office, Rev & Tax and DOA - three agencies the senator says are in the best position to collect on an estimated $73 million in uncollected taxes that rev and tax says is still out there to fund their operations. But the governor says senators may not understand that if any of that money is collected it would be used to pay down previous obligations.

"This is outrageous, its ghost, the only time it will become real if somehow we can wipe out $73 million accumulated deficit. And then, then, this would somehow become tangible," continued the chief executive. "When the number one policymakers of this island, the one's responsible for creating budgets don't understand it. We're in big trouble."

Budget director lester Carlson says the money remains outstanding because of the high uncertainty of collection. But that's not how San Nicolas and a majority of senators see it. As a hedge, San Nicolas is proposing to use only $18 million of the $73 million he still believes can be collected.

The governor warns otherwise, saying, "If they pass this budget as is, and some of the amendments that are being proffered by Senator San Nicolas, then for all intents and purposes the Government of Guam will shut down."

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