DOL: Fed Spending on Guam Fell 8.9% Between FY 08-09

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Guam – The total amount of Federal funds spent on Guam fell 8.9%  between FY 2008 and FY 2009 according to the Federal Expenditures Report released by the Guam Department of Labor.

The report was compiled by DOL’s Chief Economist Gary Hiles. 

The report includes provides data by expenditure class and detailed program data for Guam and expenditure class data for United States insular areas in the Pacific. These areas include CNMI, Marshall Islands, Belau and the Federated States of Micronesia.

View the complete report HERE

KEY FINDINGS – GUAM

For the first time in the recent history of federal expenditures on Guam from 1996 – 2009, Non-Defense expenditures have exceeded Defense expenditures. This is due to a substantial increase in Non-Defense expenditures and a substantial decline in Defense expenditures for FY 2009. Economic stimulus funding increased Non-Defense expenditures and lower Military Construction appropriations in FY 2009 reduced Defense expenditures.

♦ Total federal expenditures on Guam decreased 8.9% from $1.53 billion in fiscal year 2008 to $1.39 billion in FY 2009, the latest year for which complete information on federal expenditures is available. Federal expenditures for Defense were down 28.1% and Non Defense spending was up 11.5 percent.

♦ Information for federal expenditures for fiscal year 2009 from the Federal Assistance Award Data System shows a very significant increase (22%) from $627 million in fiscal year 2008 to $766 million in fiscal year 2009.

♦ Total    federal    expenditures    on    Guam    have generally risen over the fourteen year history from FY 1996 to FY 2009 although the pattern has been neither smooth nor steady. The growth trend in total federal expenditures has been somewhat volatile, with two distinct peaks in expenditures related to typhoons with troughs in the intervening years. These peaks include those in 1998 and 2003 associated with typhoons Paka and Pongsona.

♦ Total federal expenditures on Guam increased by 12 percent from $1.25 billion in FY 2004 to $1.39 billion in FY 2009. Federal expenditure totals had remained consistently in the $1.25 billion to $1.53 billion range between FY 2004 and FY 2009. Using the lower FY 1999 level as a base, total federal expenditures on Guam increased by 65.4 percent over the decade from FY 1999 to FY 2009. The highest level of federal expenditures to date was reached in FY 2003 at approximately $1.54 billion.

♦ Total    Direct    Expenditures    or    Obligations    for Defense have increased modestly 11.9 percent, from $506.9 million in FY 1996 to $567.3 million in FY 2009. Total Direct Expenditures or Obligations for Non Defense activities have increased more substantially by 156.6 percent, from $322.9 million to $828.7 million.

♦ Federal spending by expenditure category in FY 2009 is led by Grants with $387.3 million followed by Salaries and Wages $312.5 million, Procurement Contracts $304.9 million, Retirement / Disability Payments for Individuals $272.1 million, Other Direct Payments for Individuals $94 million and Direct Payments other than for Individuals $25.3 million. From FY 2008 to FY 2009 Salaries and Wages    increased substantially by 42.1 percent while Procurement Contracts registered in contrast, a decline of 50.1 percent.

The report is available from the Department of Labor, Bureau of Labor Statistics and on-line on the Departments’ website at www.guamdol.net