by Sabrina Salas Matanane

Guam - It may be law, but discussion surrounding a bond continues at the legislature. Wednesday night Bill 344 went up for a public hearing, the measure was introduced by Senator Ben Pangelinan, who said, "The fundamental issue to remove CLTC from the calculation to set it back to what it was but underlying all that that we agreed to a $240M. If we didn't resolve those issues then we might not get to where we wanted to be where everybody agreed to."

By addressing perceived problems with the bond law regarding CLTC properties and raising the debt calculation from 90 to 93 percent, Senator Pangelinan believes the $240 million would be achievable. "In that regard we commend you for that effort that's laudable that shows a certain level of cooperation between the matching of the goals between the legislature and the administration," said Governor's Chief Policy Advisor Arthur Clark.

Clark said the legislation might have a negative effect. He testified during Wednesday night's hearing, saying the reconciliation currently being undertaken on CLTC properties by the Department of Revenue & Taxation and the CLTC is showing they are actually on target to meet the projected debt ceiling number of $240 million and although they appreciate Senator Pangelinan's effort, Bill 344 might do more harm than good.

Clark said, "We have a concern with changing the law after we've met with the ratings agencies and made representations to them about the current status of the law. We have some concerns that might be negatively perceived and might have an effect on their bond rating."

Some of those concerns stem from statements Clark says were included in the legislative intent section of the legislation, to which Senator Pangelinan said he might be amenable to change. "If for example the intent was taken out so it doesn't become alarming to the ratings agency so then we have a more clearer path towards the $240M which is what we've always certified all these years without the complication of CLTC being thrown in there and having to be reconciled and the debt limit being raised to $93M. Would that be something be considered by administration?"

Clark responded he would relay the message to the government's bond counsel Stan Dirks. Clark said, "I would be happy to run it by him as you proposed to take that all out what would be the net effect but I would just be cautious of amending something with that he's participated in that he feels comfortable with that will get us to the point where he can issue the unqualified opinion and which we have already have presented to the ratings agencies." Pangelinan said, "Alright."

According to Clark, if GovGuam doesn't get the unqualified opinion, then there's no bond. Meanwhile the reconciliation of CLTC properties is expected to be completed by the end of this month.