Governor Calvo orders 32-hr work week after senators fail to vote on tax raise

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Guam – Governor Eddie Calvo has ordered a 32 hour work week for the executive branch and its line agencies. According to a release from the administration “time has run out” and thus the governor has ordered that his legal team and fiscal advisors initiate a 32 hour work week effective Tuesday March 6.

The governor issued this order shortly after lawmakers recessed session without voting on his bill 245 which would raise the business privilege tax from 4% to 6%. The governor says this tax raise is necessary in order to make up for the fiscal shortfall created by the Trump tax cuts which have resulted in lower revenues for GovGuam. The governor says “Payless paydays are on the horizon and we need to cut costs now.”

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NEWS: Governor Orders 32-Hour Workweek 

Legislature has not passed measure to address federal tax cuts and GMH

 

Hagåtña — The Governor has requested that his legal team and fiscal advisors initiate a 32-hour work week, effective Tuesday, March 6.  After days of session, multiple SES meetings, public hearings, and committees of the whole, the Legislature has failed to take any meaningful action brought on by federal tax cuts or to address the financial shortfalls at GMH.

“While I appreciate the work of senators, they have taken too long and time has run out. I have no choice now but to take immediate and meaningful action,” Governor Eddie Calvo said. “Payless paydays are on the horizon and we need to cut costs now.”

The Governor said he was hopeful that the senators would have acted on one of his two bills by now, or passed an alternative solution.  No successful amendments or compromises have been passed, and the Legislature recessed until 8 am tomorrow.

It is unfortunate, as this will cause pain and financial hardship on thousands of working families, affect business sales, and bleed into the economy.

The Governor said he will refrain from traveling for business and is calling on all senators to do the same until a solution is passed to address the fiscal crisis.

“As with past cuts, my administration at Adelup will lead by example and take the cut along with the thousands of government employees” Calvo said.

To date the Governor has proffered two bills in the last month to address the fiscal crisis. The Legislature has yet to put a proposal forward.

Addressing the fiscal issues before us requires a legislative action.  The Administration is requesting those affected to call their senators.