The Leon Guerrero administration has submitted its final executive budget request, marking the close of its two-term tenure and setting the stage for a broader debate over Guam’s fiscal future. 

The FY 2027 proposal emphasizes long-term stability, fiscal discipline, and what the administration calls honest budgeting.

The administration says the budget request also reflects the economic realities Guam faces – continued recovery, geopolitical pressures in the pacific, and uncertainty in federal policymaking.

Governor Lou Leon Guerrero stated those conditions demand budgets that match Guam's permanent obligations with permanent revenue, and reject practices that once led the government into an $83 million deficit.

The governor says their disciplined fiscal management eliminated that deficit, restored reserves, and allowed tax refunds to be issued within weeks.

The EBR is also built entirely on revenues projected for 2027 – avoiding use of prior-year excess funds, one-time fixes, and "accounting shortcuts". 

It also maintains the current 4.5% Business Privilege Tax rate, arguing that under-collecting revenue while maintaining permanent costs only postpones deficits.

Priorities include public safety, healthcare, debt obligations, school construction, corrections modernization, and homeland security.

The administration says this fiscal restraint is not for a lack of compassion, but a way to ensure Guam can retain its flexibility to respond to our people's needs if federal support suddenly shifts.

 

And further details on the budget request can be expected during the governor’s final State of the Island Address on February 11.