BBMR Predicting $14 Million Dollar Shortfall For This Fiscal Year

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Just last month BBMR was actually projecting or predicting a budget surplus.

Guam – The Government of Guam is now expecting a $14 million dollar shortfall for this fiscal year. This is far different from the over $200 thousand dollars surplus in collections they were predicting just last month.

 

 “Yesterday we received the consolidated revenue and expenditure report and to my surprise but not really a surprise it was expected. It shows that we’re gonna be, the projection is gonna be $14 million dollars short for the year,” said Vice-Speaker B.J. Cruz.

 Just last month BBMR was actually projecting or predicting quite the opposite. In fact their projections showed that GovGuam would be collecting over $200 thousand dollars more than what was budgeted for. “This month they’re actually acknowledging that we’re going to be real short on the gross receipts tax by about $14 or $15 million from what I projected which was $20 million lower than what the Governor projected,” said Cruz.

 The Chairman of Appropriations says that withholding taxes and gross receipts taxes are significantly lower than what the administration thought they would be and what GovGuam budgeted for. This despite a record breaking month for tourism. “Unfortunately when you look in Tumon they’re no longer carrying the big Louie Vuitton bags they’re carrying the Ross and the Kmart bags and so the gross receipts they’re not spending the kind of money they used to spend,” said Cruz.

 

 The Vice-Speaker says that this is why he wanted to be more fiscally responsible with the revenue projections for this fiscal year than the administration was.