'Stronger today than seven years ago:' Guam governor says she kept her promises and stabilized public finances

By Pacific Island Times News Staff

Gov. Lou Leon Guerrero delivered her last state of the island address on Wednesday, claiming that Guam is unquestionably “stronger today than seven years ago” and touting what she called a fulfilled promise to put government finances in order.

“Our annual debt service is down from $92 million to $65 million. We turned an $83 million deficit into a cumulative $297 million surplus without borrowing from the bond market, and we have a Rainy Day Fund backed by nearly $60 million in real cash,” the governor said.

Leon Guerrero, who assumed office for her first term in 2019, is serving the last year of her second term. She was the first Democrat to occupy Adelup after 16 years of Republican rule.

Her administration was challenged by the Covid-19 pandemic, which tested the island's fragile healthcare system; a destructive supertyphoon that caused $2 billion in damage; and a skeptical legislature with which she has often been at odds.

Despite the challenges posed by a natural disaster and a public health emergency, Guam received billions in unprecedented federal assistance at the height of the pandemic.  

“We do not claim perfection. Nor do we pretend the long, hard march of progress is finished,” the governor said, delivering her speech before the 38th Guam Legislature.

“But without question, Mr. Speaker, I am proud to report Guam is stronger today than it was seven years ago—with a government that truly serves the people.”

Read the full text of the governor's state of the island address here.

As for Guam's economy, the governor said what comes next "is not simply more recovery," but "a different kind of economy and a deeper kind of responsibility."

"Guam’s visitor economy is growing. Quietly at first. Then steadily. And now, unmistakably," she added.

Submitting her last budget proposal, the governor is making another attempt to negotiate the business privilege tax, which the Republican-led legislature successfully rolled back from 5 percent to 4.5 percent effective Oct. 1, 2025.

The two-phase BPT rollback was incorporated into the 2026 appropriations law, which survived the governor’s veto. Under the budget act, the BPT rate will further go down to 4 percent on Oct. 1, 2026.

“I did so mindful that a budget is not just numbers—it is a statement of values. The budget I submitted asks you to keep the BPT at 4.5 percent,” the governor told the senators.

“That decision reflects my legal and moral responsibility to submit a budget I believe is in the best interest of the people of Guam. One that protects essential services and preserves our ability to respond when circumstances change,” she added.

Reiterating her oft-repeated argument against the BPT cut, the governor said 99 percent of the island's businesses already pay less than 4 percent in BPT— "because that’s one of the first things we did."

"And what did this legislature’s recent tax break do for Guam’s working families? Did it lower your prices at the store? Did you get a raise? Did you save when they did? Were millions taken from health care, when we have one public hospital and a limited margin for error?" she asked.

 A nurse by profession, the governor’s 2018 and 2022 campaigns focused on fixing the perennially troubled Guam Memorial Hospital.

Her proposed solution is to build a replacement medical facility in Mangilao, a project that has since stalled due to a bureaucratic stalemate over the target federal funds.

The governor sought to tap the soon-to-expire $104 million in American Rescue Plan Act funds for utility projects related to hospital development, but Attorney General Douglas Moylan challenged the legality of the proposed expenditure.

In her speech, the governor made yet another appeal for the legislature to break the deadlock.

“If we do nothing, Guam will lose $104 million in American Rescue Plan funding

this December—just 10 months from now. That loss will not be rhetorical. It will be felt in delayed care,” she said.

“If we allow $104 million meant for healthcare recovery and resilience to slip away, history will not ask who won the argument. It will ask why, when the opportunity was ours, some chose to let it pass,” the governor said.

She reiterated her grievance against the attorney general, who “has chosen obstruction and denial—denying with every passing day the opportunity to begin the work of building a new hospital.”

Guam is safer with visible police presence, increased capacity, and resources.

“We focused relentlessly on recruitment, strengthened the leadership bench, and restored morale, dignity, and respect to professions that carry extraordinary responsibility,”  she said.

“We backed our public safety professionals with the equipment, facilities, and resources they need—leveraging local and federal funds to open a new central precinct, break ground on a new GPD substation in Talofofo, and deliver police vehicles, ambulances, and life-saving tools to those who protect our communities,” the governor added.

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