Guam – While some view the fiscal year 2011 budget to be totaling $535 million dollars in reality the total amount of money the budget appropiates is $720 million dollars.
Budget Chairman Senator Ben Pangelinan explained saying, “The revenue projections is about $720 million and that is the gross revenue before we set aside refunds before we set aside debt obligations and other requirements that come off the top and when we set aside all of those obligations our net gross revenue available for operations is $535 million dollars and that is what we appropiated to the departments and agencies.”
This budget was handled differently than most others. This time around they began with the $720 million dollars they expect to get in 2011 and first appropiated $100 million dollars to pay for tax refunds and $67 million for debt service obligations. Debt service is GovGuam’s version of loan payments or payments GovGuam has to make on the various bonds it has borrowed over the years. Money was also appropiated to pay for other things like bank fees, and tax credits something that was never budgeted for before. “That’s originally what has caused the shortages in the appropiation level because when we appropiated $535 but we didn’t deduct for the tax credits and the unobligated funds you know that can run anywhere between five and ten million dollars a year which then means that you only have $520 to run the government and you’ve appropiated $535.”
So essentially what has been done this time around is the senators have begun with the figure of $720 million dollars. First they appropiated money to pay for all of the debts owed right off the top. This includes tax refunds, debt service payments and other debts. This left them with a figure of $535 million dollars to appropiate for GovGuam operations. The total amount of the budget however is $720 million dollars. $535 million of that goes to the GovGuam agencies for their operations. Senator Pangelinan says he remains confident that they have accurately predicted the revenue projection of $720 million dollars for fiscal year 2011.