Senators discuss section 30 funds during session

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Guam – Senators began session this morning (Tues) with discussion on Senator Mike San Nicolas’ resolution 76 which asks the federal government to spread out the disbursement of section 30 funds over the course of the fiscal year rather than in a lump sum.

Senator San Nicolas spoke on the measure saying that this would prevent GovGuam from spending the lump sum on prior year obligations while it is budgeted to be used throughout the fiscal year on other expenses. Senator San Nicolas says that although the Section 30 money is budgeted for a particular fiscal year the lump sum payment comes right before the fiscal year begins and is usually spent on prior year obligations before it can be used on what it is actually budgeted for. Senator Fernando Esteves spoke in opposition to the resolution saying that it does not address how to pay the prior year obligations.  Esteves says that the real issues that need to be addressed are the issues of cash management which are issues he believes should be handled by GovGuam and not by the federal government. Lawmakers are expected to hit the voting file tomorrow.