Senators discuss $2B capital improvement funding needs and state of emergency declaration

The 38th Guam Legislature convened on April 30, 2025, for a budget hearing focused on the Fiscal Year 2026 budget. The meeting addressed several critical issues, including the financial needs of the Guam Department of Education (GDOE) and the Guam Memorial Hospital (GMH), as well as the broader implications of capital improvement projects (CIPs).

The session began with discussions surrounding the GDOE's budget request, which highlighted a significant operational budget of nearly $200 million. Concerns were raised about the potential declaration of a state of emergency, with legislators questioning the urgency of addressing the financial challenges faced by the education sector. A senator expressed disappointment over the lack of clarity regarding the state of emergency, emphasizing the need for immediate action.

The conversation then shifted to the absence of capital improvement projects in the budget request. A representative from GDOE noted that they were instructed to submit CIPs separately, which raised questions about the adequacy of the current budget to address pressing infrastructure needs in schools. The senator pointed out that the operational budget does not account for the necessary funding for CIPs, which could amount to over $2 billion.

Further discussions involved the need for a comprehensive approach to financing these capital projects. Legislators urged the finance team to collaborate with the Guam Economic Development Authority (GEDA) to explore potential funding sources and develop a realistic debt service plan. The importance of identifying alternate funding sources was emphasized, particularly in light of the significant impact of recent disasters on schools and hospitals.

The meeting also addressed specific budget items, including a proposed $17 million for contractual obligations, which encompasses various operational costs such as grounds maintenance and IT contracts. Additionally, a request for $2 million was made to cover payroll costs for federal employees performing local tasks, highlighting ongoing challenges with grant management and reimbursement processes.

In conclusion, the budget hearing underscored the pressing financial needs of Guam's educational and healthcare systems, the necessity for a strategic approach to capital improvements, and the importance of clear communication regarding the state of emergency. The legislature is expected to continue discussions on these critical issues as they work towards finalizing the FY2026 budget.