The $1 billion budget for the Government of Guam for Fiscal Year 2023 has been signed into law by Gov. Lou Leon Guerrero.

The governor transmitted the signed substitute bill No. 276-36, now Public Law 36-107, to Spkr. Therese Terlaje late Monday – just hours before the midnight deadline.

Leon Guerrero expressed concern over several provisions in the bill.

“Government financial management involves principles and protocols that address complex accounting and cash management realities. This includes the common circumstance wherein payables may not accrue in the year expenses have been incurred, which occurs frequently in the ordinary course of government accounting,” said Leon Guerrero in her letter to senators. “By the same token, some revenues are received in subsequent years than the fiscal year in which they are reported, resulting in limited cash flow despite reported ‘excess’ collections. It is for this reason that, time and again, I have cautioned the Legislature against appropriating so-called ‘excess revenues,’ which remain fluid until such time an audit is completed for the period and actual earned revenues are identified. This practice by the Legislature, which continues in several appropriations in this Budget Bill, relies on a budgetary fund balance, which reflects simply the total amount accumulated from prior years, instead of the generally accepted accounting principles (“GAAP”) fund balance, which accounts for the complex timing of recognition of revenues and expenditures. Ignoring our administration’s fiscal policy based on GAAP carries the risk of blind spending before financials are audited, and threatens the resurgence of the decades-old deficit our administration worked hard to retire.”

The Legislature was also recognized for authorizing the Department of Administration Director to delegate the responsibility for assessment and updating of employee pay schedules to certain agencies and to coordinate training and resources to support it.

She did applaud the senators who voted in favor of the bill, which funds the Educator Pay Plan, which the governor approved back in May.

“Lt. Governor Josh Tenorio and I believe that proper compensation is a critical component of employee recruitment and retention,” she said. “More importantly, it is just. Paying our government employees decent and fair wages contributes to their quality of life, their employment satisfaction, and, ultimately, their dignity. Our teachers have waited for too long to see this increase in their wages.”

Leon Guerrero concluded that she is disappointed that some senators voted against the budget bill after opposing her administration’s implementation of the Educator Pay Plan.