Guam tax revenues on track to be $9M higher
HAGATNA, Guam — A jump in income tax revenue is putting Guam’s government on track to collect $9 million more than expected during the current fiscal year.
The Pacific Daily News reports the trend is expected to continue in the next fiscal year starting Oct. 1. But the additional revenue will be offset in part by about $10 million more in bond payments.
Gov. Eddie Calvo’s administration forecasts tax revenue of $513 million next fiscal year. It also anticipates receiving $56 million in federal funds and $8.2 million in fees.
That’s about $577 million altogether.
The administration wants to spend $565 million of that amount. It’s moving to hold off on spending $11.5 million it will keep as a general fund reserve.
Bureau of Budget and Management Research officials and Department of Revenue and Taxation Director John Camacho met with senators on Monday for the first part of a week of hearings to discuss the Calvo administration’s projections and appropriation requests.
Calvo has said that whatever amount lawmakers appropriate for the coming fiscal year, he will order his agency directors to implement a reserve tool to prevent agencies from spending more than the government is able to collect.
“Departments and agencies must continue to exercise fiscal discipline and maintain control of expenditures to ensure continued timely payments of tax refunds and government obligations,” budget and management bureau Director John Rios told senators.
The government’s existing debt payments will increase by $8.5 million next fiscal year, $17.1 million the following year and $23.8 million in fiscal 2017.