OPA Says GovGuam Overspent by $83.6M Last Year; Confirms $349M Deficit

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Guam – The Government of Guam “overspent” by $83.6 million dollars in Fiscal Year 2010, raising the total cumulative deficit of GovGuam to $349 million dollars, according to a report released today by the Office of Public Accountability.

The OPA report is entitled “Government of Guam Liabilities Assessment.” It was requested by the incoming Calvo administration in January.

Read the Executive Summary of the OPA report on “Government of Guam Liabilities Assessment”

The OPA reports that the deficit is likely to increase this year by $23.7 to $34.1 million dollars for the following reasons:

* the court ordered payments of $14 million dollars required under the permanent injunction against the Department of Mental Health

* the un-budgeted increases in health and insurance premiums ranging from $9.7 million to $20.1 million

The auditor also notes that the Retirement fund got an “unintended windfall” ranging from $14.8 to $18.1 million from a so called “lost opportunity” income or interest-only payments. The auditor is recommending that those funds be used to pay past due retirement fund benefits owed by GMHA and Guam DOE.