Lawmakers tackle fiscal year 2021 budget


The Legislature went into the Committee of the Whole today to discuss the fiscal year 2021 budget bill

The Office of Finance and Budget presented a reduced general fund revenue projection of around $774 million for fiscal year 2021.

OFB Director Stephen Guerrero said they expect a reduction in General Fund revenues because of the ongoing crisis caused by the COVID-19 pandemic.

But the challenge right now is to find a finite number that would reflect the actual impact of the pandemic, according to Guerrero.

Guerrero said OFB also projects a $2 million reduction in federal revenues, including a $1.2 million decrease in Section 30 money.

Additionally, OFB reports a possible  $10 million decrease in business privilege tax for the next fiscal year but an increase in individual income tax revenues.

Guerrero also projects a huge reduction in special fund revenues, specifically the Tourist Attraction Fund (TAF). During the current year, TAF revenues reached $44.9 million but in the incoming fiscal year that number may be reduced to $18.3 million.

General Fund allocation

Guerrero also presented OFB’s FY2021 General Fund budget allocation:

  • Public Education (around 38 percent) $ 238.1 million;
  • Protection of Life and Property (16 percent) $97.81 million; 
  • General Government Operations (14 percent) $90.12 million;
  • Debt Service (13 percent) $81.6 million;
  • Reserve (10 percent ) $62.5 million; 
  • Public Health (7 percent) $46.86 million.

‘Cut the executive budget’

Meanwhile, Adelup has responded to the Republican Party of Guam’s statement calling for a cut in the executive department’s budget.

In response, governor’s policy director Carlo Branch said Gov. Lou Leon Guerrero’s revised proposal for FY 2021 general fund revenues is $22 million less than the current year and about $60 million less than FY 2017, representing the single lowest general fund estimate since FY 2014.