Pangelinan Proposes Plan to Get More Cash to Pay For Hay

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Guam – Senator Ben Pangelinan has sent a letter to Governor Calvo urging him to consider a number of solutions to deal with the unbudgeted expenses in this year’s budget.

The Budget Committee Chair believes that the proposals will free up enough money to pay for the Hay study recommended pay increases.

Read Senator Pangelinan’s letter to Governor Calvo

Among Pangelinan’s proposed solutions are:

*Requesting the United States Department of Education to Reprogram the American Recovery and Reinvestment Act, State Fiscal Stabilization Funds Grant from funding Capital Improvement Projects to funding well deserving Salaries and Benefits for Guam Department of Education employees.

Tax collection and enforcement issues to include:

*Inclusion of Guam in the Federal Payment Levy Program in order to capture Gross Receipts Tax revenues and prevent tax leakage from military buildup-related multinational and off-island construction corporations or escrowing 4% of all military construction projects as the set aside for the gross receipts tax.

*Seeking Reimbursement of the Earned Income Tax Credit (EITC) from the Department of Treasury for an estimated $40 million increase to Guam’s cash situation.

*Establishing an Internal Revenue Service (IRS) Tax Return Processing Center toward increasing efficiencies for the Department of Revenue and Taxation (DRT) that will both provide capacity to timely payment of tax refunds to the people of Guam and maximize focus on tax compliance.

Read the Brief on IRS Tax Collection Modernization

Read the Issue Brief on Tax Collection Compliance and the Guam Military Buildup

In a release, Pangelinan is quoted as saying:

“Governor Calvo has repeatedly made reference to a cash crisis and I believe, with his collaboration and support for these issues I championed and set the foundation in my trip to Washington D.C. last October, the people of Guam may be able to realize these solutions which will support reinstating the Hay Study pay raises. I hope that Governor Calvo’s efforts in Washington D.C. only brings good news for Guam.  Everyone must prosper from the military buildup, not just a select few, and it must start with the Hay Study pay raises.”

For further information, please contact the Offices of  Senator  Pangelinan at 473-4236 or email at senbenp@guam.net