Despite this the administration believes GovGuam is still on track to meet their forecasted revenue projections.
Guam – The Government of Guam is behind in it’s revenue collections by $20 million dollars year to date and there’s less than four months left to catch up. Despite this the administration is confident GovGuam will catch up and meet it’s forecasted revenues for this fiscal year.
The cumulative revenues and expenditures report for the month of April showed that GovGuam was short by about $5.58 million dollars for the month and by $10.7 million year to date. However Vice-Speaker B.J. Cruz questioned the April shortage as he believed GovGuam was even more behind in revenue collections.
Cruz pointed to a $9.3 million dollar entry for the month of April that was attributed to withholding taxes from the Guam Memorial Hospital. Cruz believed it was a paper entry rather than actual cash. The Vice-Speaker called an oversight hearing that was held yesterday to get to the bottom of this.
During yesterday’s(Tues.) hearing it was revealed that withholding amount owed was actually over $10.8 million dollars. It was also revealed that GMH made the payment to GovGuam on June 17th or last week Friday. It was also revealed that the Department of Administration released about the same amount of money or $11 million dollars to GMH on the same day that GMH made the payment essentially GMH gave the money right back to DOA.
During the hearing Vice-Speaker Cruz said this was like an exchange of checks and not an actual cash collection. This means that GovGuam was actually short by $14.88 million dollars just in the month of April. Add this $9.3 million dollar paper entry to the $10.7 million dollar shortfall that the report shows year to date and GovGuam is behind $20 million dollars year to date.
Despite this the administration believes GovGuam is still on track to meet their forecasted revenue projections. BBMR Deputy Director Lester Carlson reiterated this during Tuesday’s public hearing. However Vice-Speaker Cruz was skeptical considering that April is historically a good month for revenues and the months of June July and August are historically bad months for collections. The fiscal year ends at the end of September.
The cumulative revenue and expenditures reports have showed different numbers of the past several months. For example the CRER for December showed that GovGuam was expecting a $14 million dollar shortfall for the year. However the month before that the CRER showed a $200 thousand dollar surplus.