by Ken Quintanilla

Guam - It's that time again and just like any budget cycle, Governor Eddie Calvo has submitted the proposed Fiscal Year 2014 budget - not only calling it conservative but one he hopes addresses the critical needs of the government. The 32nd Guam Legislature will have a very important task of reviewing the Fiscal Year 2014 budget proposal submitted by the Calvo Administration on Thursday evening.

"I look forward to the Legislature looking at our bill and working collaboratively with us to deal with the current issues affecting our island," he stated.

The proposed budget shows the Calvo Administration requesting a total of $774 million in appropriations. Additionally, the projected gross revenues for the general fund are $702.4 million - about a 2% increase over the current fiscal year. It's a budget Governor Calvo says is very conservative, explaining, "We feel that has been uncommon in the past, revenue projections have been way off in the past that has led to this deficit. Since I've been governor, we've been very accurate."

The $702.4 million will be distributed as such with $113 million off the top to go to tax refunds; $11.5 million reserved to pay down the deficit, $43.4 million to pay off the debt service and $534.6 million remaining is appropriated for operations to include set-asides for other purposes such as tax credits. The proposal budget also calls for a 13% increase in funding for tax refunds.

The increase is fitting following the permanent injunction issued by the District Court to pay tax refunds no later than six months after the filing of the claim for refund. Calvo says his fiscal policy team to move forward with the order. "And then we'll make decisions on both in regards how we'll deal with the ruling by the judge and how we also will work with the Legislature in this current year and future budget in order to ensure we fortify appropriations for critical services; but most importantly, getting those tax refunds in time," he said.

However, Calvo says the budget proposal isn't enough to cover all the mandates but it will focus on critical services which received increases from its current levels. "And that is why we're giving additional resources for hiring more policemen, fortifying the fire department and assisting in areas that will assist Mental Health," he added.

Specifically, the proposed budget shows several agencies receiving an increase from their current levels to include the Guam Police Department with $1.2 million; Guam Fire Department with $2.4 million; Department of Mental Health and Substance Abuse with $1.3 million, along with the Department of Corrections, Guam Memorial Hospital and DISID receiving increases as well.

The proposed budget meanwhile doesn't include funding for increments, the hay plan or the remaining 20 percent for law enforcements. Calvo meanwhile says he's confident with the numbers presented and believes it's on target with revenue estimates. He said, "So moving forward with this budget process and with many other issues, whether its deficit, whether its improving services whether its improving our economy, I look forward to working with this legislature in focusing on these critical issues that are affecting our people."