The Guam Department of Education needs over $300 million for Fiscal Year 2026, and that’s not factoring in the potential loss of millions in American Rescue Plan funds.  Senators scrutinized the massive request during a hearing Wednesday.

“Absolutely necessary, there’s no fluff" is how GDOE described its massive $306.3 million budget request for. Education officials appeared before lawmakers Wednesday to make their case for a 0.97% increase from FY2025 - a hike driven in part by rising dental and medical expenses for staff, among other factors.

GDOE deputy superintendent of finance and administrative services, Morgan Wade Borja Paul, broke it down iteratively, saying, “$260.4 million in personnel costs, $25 million in general operating costs, $17.6 million in utilities costs, and a measly $380,000 in capital outlays.”

GDOE notes that its budget request has remained consistent over the past five years, thanks to pandemic relief funds and federal grants that helped cover key expenses, including utilities. But now, no longer able to tap education stabilization funds and American Rescue Plan dollars, the local budget must absorb those costs.

“We may have to take out of our general fund 5 million to cover utilities prior to September 30," Borja stated, also warning about the impact of potential cuts. “If we’re going to cut the budget, it’s going to go back to those areas. We’re not going to staff the required CBA positions, we’re going to find ourselves drawing from the general fund in order to pay utilities and hope we make it through the years and risk IT-related services to our students.”

Meanwhile, GDOE noted that approximately $180 million in ARP funds remain tied up. Senator Therese Terlaje questioned the lack of focus on this issue during budget discussions, saying, “But it’s not estimated in here, right? How it will impact your budget? Or are you going to cover that out of operations?"

Paul clarified that the budget had been approved by the Guam Education Board prior to the latest developments, and that any capital improvement projects would require a separate budget. 

In the meantime, committee chair on finance and government operations, Senator Chris Duenas, said he’ll push to get GDOE as close to its request as possible, while other senators encouraged the department to return with a revised budget.