Adelup sent out a release Tuesday, saying the Leon Guerrero-Tenorio Administration, in just its first nine months in office, was able to reduce the cumulative general fund deficit by nearly half, from $83.4 million in FY 2018 to $47.8 million by the end of FY 2019.
The administration says this single year general fund surplus of $35.6 million was achieved through strict fiscal discipline, which include ongoing cost controls, aggressive tax collections, and maximizing federal funds, from day one of the administration.
The results of these efforts will be reflected in the upcoming release of the audited financial statements for the period ending September 30, 2019, according to their release.
The statement adds this effort was achieved in very short order after taking office, and it delivers on Governor Lou Leon Guerrero’s campaign promise to restore fiscal discipline at all levels of government in order to reduce, or entirely eliminate, the cumulative deficit.
“Contrary to our critics, we have taken decisive, bold steps to reverse the past financial wrongs left to us by our predecessors. As a result of the hard work of our fiscal discipline team and the support of our dedicated government employees, we are seeing positive outcomes in our efforts to restore the public trust in the management of the government’s financial resources. We will continue towards the overall goal of leaving our children with a reduced cumulative deficit and debt burden,” said Governor Leon Guerrero. “I cannot overemphasize that this single year surplus merely allows for the cumulative deficit to be cut nearly in half and is not available for appropriations as we continue to climb out of the $83.4 million hole we were left with.”
With the FY 2021 budget discussions already underway, the administration is continuing its policy of fiscal discipline with a revised proposal for FY 2021 general fund revenues that is $22 million less than the current year and $60 million less than what was budgeted in FY 2017. This represents the single lowest general fund revenue estimate since FY 2014, according to Adelup.
(News Release from the Office of the Governor)