From promises to performance: A responsible budget for Guam's future

By Ed Untalan

Government should fund results, not simply activity.

That principle should guide Guam as the governor and legislature work through the fiscal year 2027 budget. It should also guide voters as we evaluate candidates for governor and senator in the upcoming general elections.

The governor vetoed the budget because she believes important public services need additional funding. Because an override appears unlikely, the practical path is for the administration and Legislature to work together on a responsible solution.

The goal should not be to decide who won the political argument. It should be to protect essential services, preserve the scheduled 4 percent business privilege tax, use realistic revenue estimates and show taxpayers what their money will accomplish.

Families and businesses face similar choices every day. There are always more needs than available resources. When costs increase, they cannot simply assume more money will appear. They review their income, decide what matters most, postpone what can wait, and adjust when the numbers do not work.

Government is not a business. It has responsibilities that businesses do not. But the basic discipline still applies: set priorities, use realistic numbers, protect essential obligations, and make adjustments when necessary.

If additional funding is requested for education, healthcare, public safety, childcare, disability services, or other priorities, the public deserves clear answers: What problem will the money solve? What result should we expect? When will we see it? Who is responsible for delivering it?

That is the difference between funding activity and funding results.

Funding activity asks how much money was appropriated, how many employees were hired, or how many programs were created. Funding results ask whether children are learning, patients are receiving better care, neighborhoods are safer, permits are issued faster, infrastructure is working, and local businesses are creating jobs.

These are the results people experience in their daily lives.

The same discipline must apply to revenue. Strong collections are welcome, but government must distinguish between continuing economic growth, one-time revenues, and estimates that may not materialize. If revenues fall short, leaders should act early to protect essential services and obligations while postponing lower-priority spending.

These are the results people experience in their daily lives.

The same discipline must apply to revenue. Strong collections are welcome, but government must distinguish between continuing economic growth, one-time revenues, and estimates that may not materialize. If revenues fall short, leaders should act early to protect essential services and obligations while postponing lower-priority spending.

The revised budget should also preserve the return to a 4% BPT. A lower BPT can ease pressure on operating costs, help businesses retain employees, support investment, and improve Guam’s competitiveness. Protecting that commitment will require discipline, prioritization, and measurable performance throughout government.

This budget debate is larger than one fiscal year. It presents an opportunity to establish a new standard for public policy - and for the election ahead.

The Chamber will ask candidates for governor and senator alike: What specifically will you accomplish? What is the situation today? What will your plan cost? How will it be funded?

When will the public see results? How will success be measured? What will you do if the plan falls short?

Governors must explain how they will lead agencies and execute their plans. Senators must explain what they will authorize, fund, oversee and hold accountable.

ADVERTISEMENT

The chamber will not score candidates or tell voters whom to support. We will publish their commitments side by side, identify unanswered questions, and allow the people of Guam to draw their own conclusions.

These are not Republican or Democratic questions. They are Guam’s questions.

Guam does not lack needs, plans, promises, or public spending. What we need is follow-through - and results people can see in their daily lives.

Government should fund results, not simply activity. That is how Guam grows its economy, creates jobs, delivers value for every tax dollar, and moves from promises to performance.

ED Untalan is the 2026 Chairman of the Board of the Guam Chamber of Commerce, the island’s leading business advocacy organization, representing the interests of its membership through civic engagement, policy advocacy, and programs that strengthen Guam’s economy.

Subscribe to

our digital

monthly issue