Guam - It was last week in filings in the Zapanta and Paeste tax refund lawsuit in which DOA director Benita Manglona mentioned that paying refunds out in time would result in a $74 million shortfall to the government, which would further result in cuts to government services and personnel. While the Calvo Administration has gone on record saying it intends to pay refunds on time each year, would this impact that commitment?

Governor Eddie Calvo says no. he told KUAM News, "Our government has been funded on the backs of our taxpayers, and I made a commitment that this will never happen again, that means we have to right-size this government and we have to make some tough decisions."

He adds some of those tough decisions include the Spending Cuts Task Force's recommendations along with ensuring that there's enough money available to fund critical services.  He further states that while cuts are needed, layoffs would be the least favorable option.