by Ken Quintanilla

Guam - Now that the bond and budget have both been signed before the end of fiscal year, one deadline that's still looming is September 30 for GovGuam to expend ARRA funding.

The battle over the budget and the bond seem near to ending minus a few technical details between the governor and the Legislature, but the race continues to expend millions in federal stimulus funding. According to the Bureau of Budget Management & Research, based on a draft form until its books are officially closed for Fiscal Year 2012, GovGuam has received $236.7 million in ARRA funding to date.

Of that total, approximately $65.3 million has been expended, $80.5 million has been obligated and $90.8 million remain unobligated to date. Relative to unobligated funding, an additional $60 million will be converted to an expenditure shortly after either the budget bill was signed into law or trustee services are contracted out in line with Public Law 31-40 both of which must be undertaken before September 30.

The governor's chief of staff Frank Arriola says since taking office, 98 percent of the projects that are due for obligation have been obligated and various projects concerning ARRA funding continue to be ongoing. "Guam Energy Office has led out some things, you'll see new streetlights along Marine Drive, streetlights along Tumon Bay; government buildings will be retrofitted with energy efficient lighting and air conditioning units throughout the Government of Guam, so those things are starting to be spent now," he said.

Arriola is part of the ARRA rapid response team which was formed by Governor Eddie Calvo in February to address issues relating to ARRA funding. The team consists of the governor's chief fiscal advisor Bernie Artero, special assistant on education Vince Leon Guerrero, Guam State Clearing House administrator Eric Palacios and staff from BBMR. He says the teams have met a bulk of the requirements regarding deadlines and procurement issues and are now going through the RFP and bid process.

BBMR director John Rios says most if not all ARRA grants awarded to GovGuam expire at the end of this month. "It's approximately $236 million, and out of that $236 million, about $20 million has been expended and we're looking at $130 million that has to be expended by December 31 of this year and $60 million of that is with the Department of Education," he said.

Rios adds the they are on pace to expend and obligate those funds between the end of September to the end of the year. The remaining $87.5 million of the $236 million in grants expire between January 2012 to September 2015. In April, the Office of Public Accountability had issued a report stating the possible threat that GovGuam could lose over $150 million in ARRA funding if action wasn't taken on or before September 30.

Rios says this will only happen if it isn't obligated by the end of September, saying, "Some of it has to be obligated by September and expended by December, so once all the purchase orders and contracts are completed then they'll start spending the funds."

BBMR contends that the figure provided by the OPA was based on the ARRA-one report in circulation at the time which they say was out-dated by the time the audit was officially released. They add it incorrectly factored in available ARRA balances for Guam's ARRA grants which extend beyond September 30.

Rios says as GovGuam faces its financial crunch, available ARRA funding may help alleviate just that. "Going back to the Department of Education, they were supposed to spend that $60 million by the end of the year, but what happened we went back to the U.S. Department of Education and requested to have it encumbered and obligated and given one year to spend and they went ahead and approved their extension," he said.

The bottom line: GovGuam has to use it or lose it.