Specifically GovGuam will be borrowing $20 million for current debts to vendors, $10 million will pay future vendor bills for the rest of the fiscal year and $15 million will go towards vendor payments for next fiscal year.
Guam – Acting Governor Ray Tenorio signed Bill 340 into law allowing GovGuam to borrow $45 million dollars for it’s operational expenses.
Specifically GovGuam will be borrowing for vendor payments. $20 million will pay current debts to vendors, $10 million will pay future vendor bills for the rest of the fiscal year and $15 million will go towards vendor payments for next fiscal year. Only two senators voted no on the measure namely Nerissa Underwood and Mike San Nicolas. “When you have an operational shortfall you can’t borrow you’re way out of it because operations are supposed to be funded through cash flow and you’re supposed to bring in the revenue necessary to sustain your operation. If you borrow to cover operational costs that cost is never gonna go away and you’re gonna end up borrowing again in the future,” said San Nicolas.
The Senator says he is now concerned about GMH’s push to borrow $120 million for capital improvement projects considering that the last capital improvement project or the urgent care center failed to generate revenue. Because of this Senator San Nicolas says he will hold bill 338 in his committee.