by Ken Quintanilla

Guam - The third day of special session started with the Administration's presentation of a new ten-year revenue and expenditure performa or report excluding the military buildup, and more questions raised as to what are the consequences if the government fails to keep up with the close to $30 million in debt service for the 33-year term of the loan.

Senator Rory Respicio says his biggest concern demonstrating the ability to pay the $343 million bond and making the first payment until Fiscal Year 2017. "We're trying to demonstrate our ability to pay this new bond and I think it's reckless for anyone to say don't worry about it, the first payment is not 'till Fiscal Year 2017. Or I think it's even more reckless for the governor's fiscal policy team to say that the government always finds money someway somehow," he said.

Today's debate on the floor would quickly heat up.

Respicio said, "I'm asking you to consider what's the consequence of owing a taxpayer than owing a bank through a bond covenant? What is the consequence that if the Government of Guam can't afford this debt and we start liquidating, what is that consequence? Believe me, I understand that we owe taxpayers, maybe the consequence of not paying tax payers is I don't get reelected, but people elected us to make the tough decisions and they elected your governor to make that tough decision and that's why he trusts you to be in the decision that your in, but is it responsible, Mr. Rios, to say we owe this debt lets just go out and borrow and when the time comes we'll find the money."

John Rios answered, "If it makes sense right now senator, then yes." He added, "It's not a new debt, like I explained, it's not a new vehicle that we're purchasing or we're not putting money to build a new Department of Administration, this is here debt we already have and all we're doing is moving it from the deficit to a long term debt in our balance sheet."

The bottom line, for governor's chief fiscal advisor Bernie Artero was, "Again, not paying the tax refunds what are the consequences? People die, people get sick people's lives changes this is not something we asked the people to borrow we took it."

Meanwhile an amendment was passed to cap the interest rate for the loan at 6.5% as opposed to the 8.8% requested by the governor in Bill 1-3-S.