Rainy day fund amendment introduced

Sen. Clynt Ridgell (PNC file photo)

Senator Clynt Ridgell has introduced an amendment in Bill 186-35, or the FY2020 budget bill, to revert back to the original language of the Government of Guam’s Rainy Day Fund.

The budget bill states the purpose of the Rainy Day Fund is to eliminate and reduce any General Fund deficit existing at the end of a fiscal year substantially resulting from an unexpected, substantial decline in revenues received or due to the General Fund.

Ridgell says he is concerned that the legislature has to continuously appropriate two percent of total revenues projected for the general fund for each fiscal year to the rainy day fund.

“My only issue is this restricts us every fiscal year. We should be allowed to change this each budget. We should be allowed to control the purse strings and I don’t think we should be ham-stringed in a way in which we have to do this continuously every every single fiscal year,” Ridgell said.

Ridgell adds this goes in line with not preventing future legislatures from doing their job in terms of appropriations.

Department of Administration estimates that the Rainy Day Fund would generate about $13 million. Senators have until Aug. 31 to pass the budget bill.