Guam - With a mounting Government of Guam deficit, the Guam Legislature began the process of slicing and dicing the governor's $70 million spending cuts proposal. And the Legislature did some cutting alright.

On the chopping block today were Sections 15 and 16 of the governor's spending cuts proposal. The estimated savings the Administration projected if these two sections were implemented?  Anywhere between $40 million to $60 million. Although the governor's fiscal policy team and the Retirement Fund were invited to attend today's session to discuss the two sections they were a no-show.

Vice Speaker BJ Cruz proceeded to introduce a replacement amendment, saying, "It's got instructions for the Retirement Fund and the Executive Branch to enter into discussions and to get back to us in 90 days with certain things that they believe that could provide savings for the government while at the same time protecting the interests of the retirement fund members and retirees."

The two sections had mandated an early retirement program and an extension of the amortization period for the unfunded liability, both of which were adamantly opposed by the GovGuam Retirement Fund.   The vice speaker's replacement amendment requires the retirement fund within 60 days transmit to the governor and the legislature a report analyzing the feasibility of Retirement Fund reforms.

"While the Retirement Fund failed to show up to this afternoon's session, board chair Joe T. San Agustin tells KUAM that the board's position hasn't changed and nothing would have been accomplished by showing up. He adds while he's fine with lawmakers deleting the sections relating to the Retirement Fund, ultimately he's happy they saved the retirement fund money from hire lawyers had the provisions been kept in tack," he said.

Governor Eddie Calvo says while those sections were the largest component in the bill, it was needed in order to get out of the government's escalating deficit.  "If the Legislature is going to and I respect them this is another branch of government and they set policy but if they're going to remove certain areas that I put in there that would create savings that would allow us other options other than furloughs and layoffs and cutting of critical services then I do believe it is there responsibility to find what other alternatives there are," he said.

One such alternative was introduced by Republican senator Aline Yamashita that would mandate a 10% salary cut of elected leaders and unclassified employees in any agency or autonomous agency of the government who make more than $50,000 a year. The 10% cut would be in effect from January 2013 to December 31, 2014. The cuts however would not be applied to justices or judges in the Supreme or Superior Courts of Guam. 

Meanwhile, lawmakers also scrapped sections in the bill that proposed cuts to the Guam Fire Department they ended today's discussion related to provisions involving lump sum payments. Session resumes tomorrow at 9.