The Guam Chamber of Commerce was taken aback by the US$1.3 billion spending measure narrowly passed by the legislature last week, predicting it would entail crisis management in the coming fiscal year.
The business group questioned the legislature’s judgment on funding allocations in Bill 236-37, which represented the “largest budget in Guam’s history.”
“Instead of strengthening essential public services like healthcare and education, it props up bloated, underutilised offices and programs that do little for the community,” Catherine Castro, chamber president, said in a statement following the bill’s passage.
“The real priority should have been slashing waste and reallocating funds to the areas that need them most,” she added.
The 2025 appropriations bill, passed by a vote of 8-6, is now on the governor’s desk and is due for executive action on 11 September.
“As taxpayers, we are shocked and disappointed at the passage of the FY 2025 budget bill,” Castro said.
She noted that the approved spending level was US$40 million more than the original proposal transmitted by the governor in February, and US$140 million more than the current fiscal year’s budget.
Yet, Castro said the budget shortchanges Guam Memorial Hospital and the Guam Department of Education.
The bill appropriates US$256 million for the education department, which is US$47 million below the amount it has requested. The department had a budget of US$284 million in fiscal 2023 and US$235.5 million in the current fiscal year.
“This shortfall could have severe repercussions for the island’s educational system, which is already grappling with outdated facilities, insufficient resources and staffing shortages,” Castro said.
“By not fully funding DOE’s request, the Legislature risks compromising the quality of education on the island, which could have long-term negative effects on student outcomes and the future of our workforce,” she added.
GMH stands to receive US$37.5 million, half the level sought by the hospital administration.
Castro warned the legislature to brace for “crisis management” and prepare a supplemental budget for GMH.
For years, GMH has been financially troubled while struggling with aging infrastructure and staffing shortages.
“Given the underfunding of essential agencies and the anticipated challenges at GMH, the Guam legislature must urgently address these issues through a supplemental budget later in the fiscal year. Immediate action is needed to prevent further deterioration of public services and health care,” Castro said.
“Fiscal irresponsibility is no longer just a policy issue – it’s a direct threat to the well-being of every taxpayer,” she added.