by Ken Quintanilla

Guam - Governor Eddie Calvo may have said the deficit is gone, but during this morning's Special Economic Services meeting, Senator Ben Pangelinan wanted to know what exactly that means and whether there are any other obligations that need to be paid. "So we wanted to try to quantify that just from the budgeting point, cash flow as well as liability," he said.

The discussion started on salary step increases for all GovGuam employees in which Pangelinan noted were frozen following an executive order a few years back. In ensuring that these payments didn't show up anywhere else in the government's obligations, Pangelinan says an attorney general's opinion issued last year stated that the unpaid salary increases are a liability of GovGuam. Pangelinan then questioned that if merit bonuses could be paid out, why not increments? He questioned, "If we can do the merit bonus, why can't we do this? DOA director Benita Manglona replied, "The merit bonus had been quantified, HR had those numbers, they have a system but as far as the step increase, that has not been quantified."

$9 million is what Manglona estimated for merit bonuses with five million paid out already. Discussion ensued with Vice Speaker B.J. Cruz questioning why pay merit bonuses all the way back to 1991. He shared, "I've been trying to figure out, somebody made a decision but based on what," to which Manglona replied, "It was presented that this liability as it's employee compensation, it doesn't go away and it needs to be paid and it was paid."

But what about retirees and those no longer with GovGuam who were owed merit bonuses? Manglona says the AS/400, the government's accounting system, doesn't have a mechanism to determine that just yet but they're reviewing and reconciling records to check. Ultimately, lawmakers questioned with so many questions like this, who made the call to cut the checks.

Manglona: "No, it wasn't the fiscal policy team."
Cruz: "Who was it then? I keep asking that question. Either admit that it was you or say that it was a direction of the governor."
Manglona: "OK, it was me then."
Cruz: "I mean, Benita, you're pretty and you act cute, but there's absolutely no reason for that."
Manglona: "I'm not acting cute, I'm sorry."
Cruz: "Well, I've been asking the question."

But it didn't stop there as Pangelinan brought up the exchange of letters between him and Bureau of Budget & Management Research director John Rios over public law mandating proper notification to the legislature that payment of these prior year obligations would not negatively impact the current operational needs of the government. In his letter he noted the merit bonuses were charged against the current year appropriations.

Rios: "Like I said, it wasn't coming out from current appropriation but that's why I asked the Department of Administration help you understand where the payment for the merit bonus was going to come from."
Pangelinan: "So why was it reversed in terms of where it was charged to from December to January?"
Manglona: "It was a conduit that we used from the payroll system to pay it out because we don't have the software or mechanism to do it."

Pangelinan said he wasn't a mind reader which is why he sent the letter... Rios responded he could have simply asked.

Rios: "So if you only ask Benita to find out how the payments are going to be made or what year?"
Pangelinan: "I couldn't ask her because we weren't being told that they were going to be made and if you told me in December."
Rios: "But you were asking me, why didn't you just call her! Instead to threaten you're going to tell the governor to fire me?"
Pangelinan: "I'm saying, Mr. Rios, that if we didn't get the proper information then I think your performance and your candor with the Legislature is brought into question."
Rios: "But I think you should have asked the Department of Administration for more details."

It's better communication between the two branches of government that according to Speaker Judi Won Pat in her inauguration address was hoping for the 32nd Guam Legislature.

Meanwhile, the Special Economic Services committee also discussed the future of GovGuam finances over the next five years.