Republicans propose freeze-hiring, pay hike suspension for government of Guam amid unstable finances

Admin
Jun 8
3 min read

Election year proposal triggers partisan debate

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 acting Gov. Joshua Tenorio.

Bill 331-38, 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.

Tenorio, however, argued that the Republican proposal constitutes an encoroachment of the executive function.

"According to the legal advice of two attorneys general, this kind of interference with the governor’s constitutional duties could be thrown out by the courts if enacted into law," Tenorio said in a statement.

Blas and Ada are both seeking the Republican nomination for governor, while Tenorio is seeking the Democratic nod for the position.

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. GovGuam received more than $600 million in federal funds authorized under the American Rescue Plan Act and $117 million from Coronavirus Aid, Relief and Economic Security Act.

"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.

Tenorio, however, argued that the elimination of long-standing deficits has strengthened GovGuam's financial position, an improved cash position and increased revenue collections.

While saying he welcomed “ideas to strengthen the government of Guam’s fiscal health,” Ternorio cautioned that legislative proposals "must abide by long-held legal truths."

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," Blas said.

Citing opinions issued by attorney general in 2012 and 2018, Tenorio said “the legislature cannot encroach on the executive branch power to allocate staff and resources to its agencies as the Organic Act of Guam prescribes.”

He stressed that a basic tenet of democracy "is that we are governed by separate, co-equal branches of government."

Tenorio said the Republicans' attempt to seek the people of Guam's vote of confidence "is already running into potential legal headwinds from the Organic Act of Guam: the federal laws that are the foundation of the island’s governance."

Subscribe to

our digital

monthly issue