In her final State of the Island Address, Governor Lou Leon Guerrero declared Guam stronger, more stable, and better prepared for the future. But with over $100 million and major policy decisions at stake, lawmakers from both sides say the real debate is just beginning. In a speech that was part victory lap/part warning, the chief executive of the Government of Guam defended her seven-year record and delivered a message to lawmakers: don’t undo it.

"I am proud to report Guam is stronger today than it was seven years ago," she announced, "with a government that truly serves the people of Guam."

She pointed to a turnaround from an $83 million deficit to a $297 million surplus, unemployment at 3.2%, lower debt payments, and a 25% drop in power rates over the past year. Supporters call it long-overdue stability.

Senator Wil Parkinson shared with KUAM News, "It is undeniable she has righted the financial ship of GovGuam and that is truly to be commended."

But critics say the celebration may be premature. "We have to ask ourselves, ‘are we better than we were before Covid, when these billions of dollars came in?'" said Senator Telo Taitague.

The most urgent flashpoint: a new hospital. The governor warned Guam could lose $104 million in federal pandemic funds by December if action isn’t taken. She blamed the attorney general and members of the legislature for delays, saying, "What do you win by being on the wrong side of history? No new hospital for our people. No new infrastructure on which a new hospital and community can grow. Nothing except a question that will last generations—why?"

But Senator Therese Terlaje calls her remarks “a misstatement of the facts", pointing out, "They asked us to pass a law to bypass the attorney when the attorney general is asserting that the uses of these (ARP funds) might be illegal. So we have asked them to come up with a plan that makes it legal, that they both defend and that we can all agree on."

Another battle looms over taxes. The governor is urging lawmakers to keep the Business Privilege Tax at 4.5%, warning a further cut would cost the island more than $40 million in revenue. She argues most small businesses already pay less than 4%— and a rollback would mainly benefit large corporations.

Republican senators, like Shawn Gumataotao, disagree, as he said, "It made no sense to all of us at the legislature. We knew we codified that to four percent. People are asking themselves, ‘what is going on?’"

Beyond those challenges, the governor cited more than 1,000 pounds of meth seized since 2019, expanded Medicaid funding, and billions in military investment as signs Guam is on stronger footing. But with a hospital deadline approaching and tax policy still dividing elected leaders, her final address may mark the end of an administration, not the end of the debate.

Leon Guerrero declared, "We are not finished. Not with this island. Not with one another. Not with the future we owe those who come after us."