The Office of Public Accountability released an audit today showing that GovGuam’s cumulative general fund deficit has grown to $191.1 million.
Guam – GovGuam is now facing a cumulative general fund deficit of $119.1 million. The Office of Public Accountability released an audit today showing that GovGuam had a $59.5 million dollar deficit in the last fiscal year or FY 2015. This marks the second year in a row that GovGuam has had a large deficit. In FY14 GovGuam had a $61.9 million dollar deficit.
The GovGuam FY2015 audit is out and again the government of Guam had a large deficit in the prior fiscal year. According to the Office of Public Accountability in FY2015 GovGuam had a $59.5 million dollar deficit. The year before that or FY2014 GovGuam had a $61.9 million dollar deficit.
This brings the total or cumulative GovGuam general fund deficit to $119.1 million dollars.
According to the report the deficit was mostly due to a $26.6 million dollar shortfall in projected revenues, $24.4 million dollars in unbudgeted expenditures, and $10.8 million in debt service that was not reimbursed from the Solid Waste operations fund.
GovGuam bases it’s budget and it’s spending on projected revenues which are the revenues that the government is forecasting to receive. Based on these forecasted revenues GovGuam was short $11.7 million million in income taxes and short $20.7 million in gross receipt taxes.
Most of the GovGuam agencies were within their budgets. Only GDOE and GPD over expended
GovGuam spent $580 million dollars but only budgeted $569.8 million dollars. This is mostly due to unfunded payments for DOE’s municipal school leases. DOE’s approved budget was for $203.6 million dollars but they actually spent $212.2 million or $8.6 million more than was budgeted.
Layon landfill condemnation tax credits weren’t factored into the budget and they cost GovGuam $13.9 million dollars.
The report also notes that Earned Income Tax Credit or EITC has grown exponentially from $6.2 million in 2000 to $56.8 million in 2014.