Guam – The Calvo administration says there is not enough cash to fund the government. The information presented in a press release issued by the Calvo administration today was based off a cash flow model rolled over from the previous administration.
Although they have denied the Pacific News Center’s repeated requests for specific information on November’s and December’s cash collections they are predicting a possible $120 million dollar cash shortfall for government operations.
The only four options, based on this model, are to cut $120 million in expenditures, raise $120 million in revenues, borrow $120 million in bonds, or a combination of any of these three.
The release also states that the government had a negative two million dollar cash balance going in to fiscal year 2011 which means that Gov Guam floated two million dollars in checks in the first cycle of the fiscal year last October. In addition not a single tax refund has been paid in four weeks the average wait for a tax refund is now three to four years. again all this information has been released even though Gov Guam has yet to verify what the actual cash collections are for November and December.