26 Jul 2018

Guam Governor hopes service cuts can be avoided

4:27 pm on 26 July 2018

There is still hope Guam's lawmakers can come up with a solution for a large budget shortfall so staff, hours and service cuts can be avoided, the Governor's Office says.

Guam's governor, Eddie Calvo.

Guam's governor, Eddie Calvo. Photo: Office of the Governor of Guam

An estimated $US145 million shortfall for the 2019 fiscal year has been blamed on US federal tax reform and the recent repeal of a local sales tax.

The situation has led to the government working on a plan to stand-down employees, including police and fire staff.

Emergency services could be affected and police and fire stations possibly closed.

In March, lawmakers approved the two percent sales tax to generate $US120 million a year, only for the senate to repeal the tax this month.

Oyaol Ngirairikl, the spokesperson for Governor Eddie Calvo, said the administration was hopeful that legislators could find a solution before the new fiscal year began in October.

"These are not just numbers on a spreadsheet that we are talking about. We are talking about the lives of people and the livelihoods of people and the families that they support," Ms Ngirairikl.

"So you want to make sure that you provide for them, but also when we talk about the lives you are talking about the lives of the people who rely on government services."