Federal tax reform law requires GovGuam to consider cost-cutting, revenue-enhancing measures
The Calvo administration has asked government agencies to submit a list of areas where they can cut costs and enhance revenue as we look to a potential immediate negative impact of $47.9 million to General Fund revenues this fiscal year.
Congress passed and President Trump signed the “Tax Cuts and Jobs Act of 2017” into law. The new law means individuals and corporations will pay less in taxes. The flip side of that, however, is a loss of revenue for the government. The $47.9 million reflects the approximate effect to what remains of the current fiscal year, which started October 1, 2017 and ends September 30, 2018. The impact to next fiscal year, FY2019, is $66.1 million.
The Bureau of Budget and Management Research sent a memo to all executive and autonomous departments and government branches.
“Absent an immediate upward adjustment in General Fund revenues, your department/agency can expect to see a pro-rata redaction, of the cuts required, in disbursements as early as February, 2018. Additionally, all options will be considered in addressing the revenue shortfall including those departments/agencies that are funded by Special Funds,” the circular states.
General Fund appropriations for Fiscal Year 2018: (These numbers do not include special funds or federal grants)
DEPARTMENT/BRANCH FY2018 general appropriation
Legislature $8.97M
Judiciary $34.7M
Public Defender $4.34M
University of Guam $35.07M
Guam Community College $19.75M
Guam Memorial Hospital $2.77M
Mayor’s Council $788,931
Office of Public Accountability $1.39M
Department of Education $225.83M
Office of the Attorney General $16.25M
Executive Branch Operations $200.82M