Guam Republicans refuse to blink on BPT rollback; governor amends budget proposal

 By Mar-Vic Cagurangan

The Republican-led 38^th Guam Legislature on Wednesday skipped over Gov. Lou Leon Guerrero’s replacement budget bill, explicitly showing a lack of interest in haggling over the business privilege tax, which the chief executive proposed to earmark for Guam Memorial Hospital.

The governor later offered a compromise, proposing to tap the general fund instead. But some senators scrambled to look for other sources and introduced counterproposals.

The legislature convened two special sessions called by the governor—one in the morning and another in the afternoon—but adjourned quickly without tackling the executive bill.

Sen. Chris Duenas, chair of the finance and government operations committee, asked the body to reject the governor’s substitute measure, which he said includes provisions unrelated to BPT and GMH.

Leon Guerrero transmitted her substitute bill last week following her veto of Bill 44-38, the $1.36 billion budget act for fiscal 2026.

The budget act includes a provision that cuts BPT from 5 percent to 4.5 percent effective Oct. 1, and then to 4 percent by Oct. 1, 2026, resulting in a $40 million reduction in tax revenue.

The governor's alternative bill calls for keeping BPT at 5 percent and salvaging the $40 million for GMH.

“Let’s stop pretending this bill is only about the BPT. It is not,” Duenas said, reading a written statement during the afternoon session.

He said an analysis of the governor’s proposed measure bared provisions snuck into the bill to rewrite laws “that were never vetted nor debated.”

Duenas pointed to two chapters that authorize “a new GPD headquarters” and “a sports field in Tiyan” with no funding sources. Another chapter places the Guam Department of Education under the Central Accounting Act and the State Clearinghouse.

This provision, Duenas said, would fundamentally change how Guam schools operate.

“And let’s be clear about what that means: it hands the administration direct control over an additional $270 million in education funds. That is not a budget adjustment—that is a massive shift in power over our children’s schools,” Duenas said.

Another chapter raises the threshold for procurement that requires the attorney general’s approval from $500,000 to $5 million, essentially clipping the powers of the attorney general.

“These are sweeping policy changes, crammed into a budget with no public input,” Duenas said. “The governor’s transmittal is not a budget. It is a power grab.”

The governor slammed the legislature for adjourning "without a thorough examination" of her budget proposal.

“While citing concerns over the lack of public hearings on certain provisions of the bill, it is worth noting that many amendments were adopted without any public discourse during last month’s budget session,” the governor said.

“This blatant inconsistency undermines our collective responsibility to engage transparently with the issues confronting our community," the governor said.

After the legislature adjourned the morning session, the governor asked the senators to convene again, offering a compromise proposal. Her new Bill 1 (3-S) seeks to tap the general fund.

“I now bring forth a focused bill with a singular purpose: to appropriate $40

million directly for the pressing needs of GMH,” she said. “This is more than  just  a legislative duty; it is an opportunity for this body to demonstrate to the

over one hundred dedicated employees of GMH, who were present in the session this morning, that their needs matter.”

Sen. Sabrina Salas Matanane, chair of the health committee, introduced two measures appropriating a total of $40 million to GMH. Bill 186-38

 identifies $8 million from the unallotted balance of the Pharmaceutical Fund, while Bill 187-38 eyes $32 million from bond refunding savings that will become available in fiscal year 2026.

“Our hospital owes millions to its vendors, which adversely affects its

operations because GMH can’t procure essential medical supplies in a timely

manner,” Matanane said. “We are all too familiar with the critical capital improvement projects that need to happen, from broken elevators to HVAC systems and the electrical panel.”

Another bill targets debt service savings from the Business Privilege Tax Refinancing Bonds, Series 2025G. Bill 188-38 identifies $19.74 million from this source.

The bill was introduced by Republican Sens. Shelly V. Calvo, Telo T. Taitague, and cosponsored by two Democrats, Sens. Sabina Flores Perez and Chris Barnett.

“As a cosponsor of this legislation, I stand firmly behind a solution that delivers real dollars, not theoretical appropriations, to GMH,” Calvo said. “This bill ensures that the hospital receives the benefit of refinancing savings already realized, rather than relying on uncertain general fund projections.”

“By appropriating verified savings from the Series 2025G bond refinancing, we avoid the pitfalls of phantom appropriations and provide GMH with the resources it needs to replace its roof, upgrade electrical systems, and restore safe air conditioning for patients and staff.”

Taitague said the bipartisan bill answers “the call for immediate support to ensure the safety of every patient and the reliability of our only public hospital.”

She urged a prompt scheduling of a public hearing to advance the bill, which she said “is about action, not politics."

Barnett said the bill appropriates “real money for the real problems at our only public hospital. Supporting GMH is easy to talk about. Lip service doesn't pay the bills and press releases can't fix what's broken at the hospital, but this money will.”

“GMH is our island’s safety net hospital, and it must have the resources to serve 

our community,” Perez said. “By supporting these measures, we are addressing both immediate financial needs and long-term improvements so that

 GMH can continue to provide the care that our people deserve.”

As of this writing, the legislature is holding a third special session to discuss Bill 1(3S).

Subscribe to

our digital

monthly edition