Governor Says GBB Debt Service Payments Should Instead be Used For GMH

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The Governor says that the money GovGuam pays to cover the Guam Solid Waste Authorities debt service payments could go instead to GMH.

Guam – Meanwhile the Governor issued a release today saying that the federal receiver Gershmann Brickner and Bratton must live up to it’s obligation as the money that is paying for GBB’s debt could instead be going to the Guam Memorial Hospital.

 

According to the release on June 27th David Manning of GBB sent a letter to Vice-Speaker BJ Cruz saying that the Guam Solid Waste Authority would not be able to live up to it’s obligation of paying $12 million dollars a year because the $18 million a year that they collect is needed to cover their operational expenses. The Governor’s office writes that this is money that GSWA had originally agreed to pay. The release further states that at the beginning of the administration manning told Governor Calvo that GSWA should be able to achieve $30 million dollars in savings. The release points out that in a recent OPA audit GSWA ended fiscal year 2015 with a $4.9 million dollar surplus and cumulative fund balance of $19.8 million dollars. The audit also points out that in FY15 GSWA again failed to pay it’s annual debt service. The release notes that GBB was paying the general fund $4.5 million a year until fiscal year 2014. According to the Governor’s office from FY14 to FY15 GovGuam has had to fork out $19.4 million dollars to cover GSWA’s debt service obligation, an obligation that GBB initially agreed to pay.