Freeze-hiring, pay hike suspension proposed for GovGuam amid unstable finances

Admin
4 hours ago
2 min read

By Pacific Island Times News Staff

Guam's legislative leaders are proposing a moratorium on government hiring of limited‑term and unclassified employees and suspension of pay raises during the election year, citing "a growing and unavoidable concern regarding the government’s fiscal stability."

"The legislation we have introduced is not meant to impede the delivery of essential services, nor is it a reflection on the dedication of our public workforce," Speaker Frank Blas Jr. said in a letter to Lt. Gov. Joshua Tenorio.

The yet-to-be-numbered bill, which Blas co-authored with Vice Speaker Tony Ada, would prohibit temp hiring for the remainder of the year and restrict salary increases until Sept. 30, 2027.

The bill, if enacted into law, would apply across the board, but organic and merited increments would be exempted from the proposed pay raise ban.

Blas cited the Office of Public Accountability’s fiscal 2024 audit, which raised significant questions about the government’s financial posture.

"Compounding this is the uncertainty surrounding the forthcoming government‑wide audit for fiscal year 2025, the results of which may further illuminate structural vulnerabilities," Blas wrote.

"Additionally, the anticipated loss and eventual return of federal funding introduces another layer of unpredictability. "

Federal stimulus funds have kept GovGuam afloat since the Covid 19 pandemic, enabling the government to sustain operations.

"Their reduction or interruption, combined with the absence of clear long‑term revenue assurances, necessitates prudent, temporary measures to safeguard the government’s ability to meet its obligations to the people of Guam," Blas said.

The hiring freeze and the suspension of pay raises, Blas added, constitute a responsible and measured response to fiscal uncertainty.

The bill, he added, seeks to prioritize stability, protect core government functions and position GovGuam to navigate the months ahead with discipline and transparency.

"The vice speaker and I share this with you in the spirit of cooperation and open communication," Blas wrote. "We welcome any dialogue you may wish to have regarding the proposed legislation and remain committed to working collaboratively to ensure that the government of Guam remains on sound financial footing."

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