VIDEO: GovGuam’s Long Term Debt is Over $1.2 Billion Dollars

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Guam – GovGuam’s long-term debt is over a billion dollars according to the fiscal responsibility and tax refund commission’s presentation this morning at Adelup.

The commission met this morning to present parts of it’s deficit elimination plan. Bureau of Budget management and research director John Rios presented GovGuam’s long term debt as of January 2012. The long-term debt only takes into account general obligation and limited obligation debts and doesn’t count the $939 million dollars in revenue bonds that were taken out by agencies like the Guam Power Authority and Guam Waterworks Authority. “The total debt just on the general obligation and the limited obligation is about one billion $24 million dollars,” said Rios.

Senator Frank Blas Jr. says that the un-reimbursed costs of the compacts of free association could wipe GovGuam’s long-term debt.

“This is money that we’ve already spent this is money that is actually due to us and this is in the area of like I said $1.2 billion dollars and if we were able to collect that we wouldn’t be having this discussion,” said Blas adding, “There’s no place else in the nation no state would tolerate the non-payment for services that are provided the way that we have had to tolerate it and it’s almost come to the point where it’s almost breaking our backs and so we’ve got to make and we’re gonna make that hard decision and I believe we’re gonna make that hard decision and that long anticipated decision that look now we’re gonna take legal action.”

The long-term debt is comprised of various bonds for example there is $152 million dollar bond from 2007, a $264 and a $202 million dollar bond from 2009, and the recent $235 million dollar series A bond from 2011.