Tenorio: more cuts need to be made

According to Acting Governor Ray Tenorio, the Government of Guam can't make ends meet nor can it continue to pay for tax refunds, vendor payments and obligations.

August 22, 2012Updated: August 22, 2012
KUAM NewsBy KUAM News

by Ken Quintanilla

Guam - At its high end, it has the potential to curb government spending up to $70 million. According to Acting Governor Ray Tenorio, the Government of Guam can't make ends meet nor can it continue to pay for tax refunds, vendor payments and obligations. Because of this, more cuts need to be made for operational spending.

"The effort that we're trying to do now is reign in the costs so we can pay people the money that they are owed," said Tenorio.

And it was through the Calvo Administration's Omnibus Fiscal Reform Act of 2012 submitted to Speaker Judi Won Pat Tuesday afternoon outlining a list of recommendations set by the Spending Cuts Task Force with the potential to cut up to $70 million. And while the plan has been no secret, he still expects resistance to the legislation.

"There's naturally going to be resistance I suppose from any facet of this government that may have to suffer a little bit of some pain that is associated with downsizing, but just like the rest of the nation and the rest of the world in austere financial times, we have to look at the realities," he said.

For the Retirement Fund's board chairman Joe T. San Agustin, he's pleased the Administration put the plan in writing however he still opposes the proposal that looks at an early retirement program telling KUAM, "The governor should propose something else to address these shorfalls and not rely on the (retirement) fund to bail him out."

Guam Fire Department fire chief Joey San Nicolas says it's unfortunate the cuts to GFD are still in the bill, noting, "What I have been doing since the proposed cuts is reaching out the legislature as well as the administration and truly clarifying all the issues and making sure all the right information is being presented. I'm confident that I've been able to come up with an acceptable solution and unfortunately it didn't make it into this bill."

He says however that Senator Mana Silva Taijeron has made a commitment that she would advocate for GFD and offer alternatives to these cuts. "And what stuck out to me the most was the cuts earmarked for the Guam Fire Department and specifically for the pay that affects the firefighters," he said.

And it was today during the budget session in which she made an amendment to the budget bill appropriating the prospective decrease cuts from the telecommunications contract to tax refunds. And once the omnibus spending cuts bill is heard before lawmakers, she intends to remove the cuts to firefighters work hours and incentive pay. "And once that's done then I have the opportunity when the deficit reduction plan is introduced, so far it has not been brought to the floor and it has to go for a public hearing so we'll follow that process, but I do intend to introduce an amendment to that," he said.

And until the bill is heard, San Nicolas says he's asking his personnel to remain the professionals that they are along with explaining the current condition GovGuam is currently in. "And I look forward to continuous dialogue with them to ensure we can move our department forward appropriately," he said.

Tenorio meanwhile says he's open to all suggestions from all lawmakers and while some effort is being made, he hopes they take the bill seriously into consideration. He said, "We don't want to cut jobs but if the legislature is not going to act on proposals that are in front of them then they better come up with something better and hopefully less painful. We're doing the best we can with the money that we have but we have to live within our means."