More major changes for Calvo's bond proposal

Guam - Although yesterday's session brought a heated debate between senators and the governor's fiscal team, today instead brought much emotion as senators shared their stories of residents owed tax refunds calling them and asking for help. And Day Four of special session and the balancing act not only brought emotion, but its own live audience as well.
Dededo resident John Rupley says although many senators shared their stories of people seeking their assistance with tax refunds, he doesn't understand why it has to come down to a death or an emergency to have senators wake up and realize that people need their money now. For that reason, he decided to show up to a crowded public hearing room today to witness live what senators had to say.
"I'm here today because I want to find what's going on," Rupley announced. "This concerns not only me, it concerns everybody, both Democrat and Republican, both young and old, so I just want to know what's going on and how they're going to fix it."
"The public hearing room is full Madam Speaker, who will clap when they hear that the tax refunds recipients will have to get their tax refunds," Senator Rory Respicio said.
Refunds that Republicans like Senator Tony Ada say these very people shouldn't have to wait any longer. "In private industry, you don't pay your taxes you go to jail, you don't pay your taxes you pay a penalty and interest you don't pay your taxes your property gets a lien on it. Government? We don't pay what is due and nothing absolutely nothing happens to government," he professed.
During Day Four of special session, Governor Eddie Calvo's Bill 1-3-S continued to go through many transformations. And possibly one of the major ones - an amendment scrapping his request to borrowing all the way up to the government's debt ceiling at 100 percent and instead capping it at 90 percent. What this effectively would do is kill the governor's $343 million bond to pay out all past due tax refunds and COLA.
Members of the GPO like Senator Ada were against the amendment, because people are tired of waiting and some simply have ran out time. "We always talk about the time but what time do our people have. You know, about a month ago couple months ago May 17, this lady received her tax return from 2007. The check was dated May 17 and it's a 2007 tax return - the interest on it $76, but you know what? She wasn't around to see it. Because my mother passed in April," Ada said.
Respicio, the majority leader supports the 90 percent debt ceiling and like from the beginning he's unwilling to budge on the governor's $343 million bond proposal, which he says is short on specifics on how the government will pay the debt service. Without details, he will not take the risk. "If we raise our debt ceiling up to 100 percent and for some reason we default on that loan, if you look at their own performa by 2020 they're already negative $20 million. So if we default on that, the consequence is much greater because we have to start liquidating our Government of Guam assets. I don't expect people who are owed money to understand that, it's a very tough issue and they're angry, certainly they are, and I'm angry as well, but we have to articulate the risk of having this debt ceiling raised from 90 to 100 percent and I hope we can get some support," he stated.
Senator Respicio added that the next presentation should be on civics, so the public understands that it's the legislature's role to appropriate money and the governor's job to spend it accordingly.
It may be such a lesson, but for Rupley, he says the people need help and hope they can do it now. "Whether they pay this off at one time and incur the debt or whether they continue to carry the debt that they owe the people of Guam, it's still going to incur interests," he shared. "And my understanding is that if it's not close, it's pretty near close to what they're going to owe anyway, so to me, why don't you pay the people.
"For me, it's cut and dry, I put you here to work for us and if you can't stand and make the tough decisions, go sell a car or something, something easy for you to do."
Although Senator Judi Guthertz asked what would happen if the legislature were to consider raising the debt ceiling to 95 percent instead, but that too brought opposition. Guam Economic Development Authority administrator Karl Pangelinan says although he wasn't able to present today, it was great to see overflowing support by residents and department heads show up at session. He adds that ultimately if the amendment passes, it would take away their opportunity to borrow for the $343 million.
"And right now we've run some scenarios and at full debt ceiling at 90 percent come December, that will give us $230 million to work with. I'm not sure if they considered that number or where this is going with that," he said.
Lawmakers continued discussion a bit after lunch without voting on the amendment. They recessed until 10am tomorrow morning.