$1.5 million of vendor payables is 90 days or more past due.
Guam – The Guam Department of Education still owes their vendors millions.
Guam Legislature Vice-Speaker BJ Cruz asked, “What is your current vendor payables?
GDOE Deputy Superintendent Taling Taitano asked, “It’s about $7 million. About $1.5 million is more than 90 days.”
This is because of the $13 million cash shortage in GDOE’s Territorial Education Facilities Fund appropriations over the last three fiscal years. GDOE is hoping that a bill introduced by Vice-Speaker BJ Cruz will help them fund 2016 operations and catch up with their vendor payables.
Taitano said, “We fully support the intent of Bill 295 and look forward to working with you and members of the Legislature on finalizing a remedy to address GDOE’s funding needs.”
Bill 295 would appropriate about $29 million dollars from the TEFF revenues to GDOE for FY 2016. However, Department of Administration Acting Director Christine Baleto says there might be a problem. “We would need to fulfill the bond obligations first and then any funds over and above that can be appropriated to DOE. We support it but we’re just concerned with the funds needed for the repayment of the $100 million dollar bond,” she said.
What Baleto is referring to is the nearly $6.1 million tied as a payment source for $100 million dollar bond being processed for school repairs and renovations under lease back financing.
Cruz said, “Over the last three fiscal years, your predecessors and BBMR have said that the TEFF shortfall meant they didn’t have enough $13 million dollars to pay for their vendors. What we’re saying now is that we will provide for the primary payment of the debt service but anything else will and should go to DOE. We’ll write it that way. We’ll make sure it’s very clear.”