Budget negotiations reveal $90 million funding boost for 2024

In a recent government meeting, officials discussed significant changes to the fiscal year 2024 budget, revealing an increase of approximately $48 million requested by the governor, alongside an additional $43 million proposed by the Office of Finance and Budget (OFB). This brings the total budget increase to around $90 million. The discussions highlighted the evolving financial landscape since the governor's initial budget submission in January, with officials attributing the adjustments to excess revenue collections and updated financial data.

Director Orb explained that the budget revisions were necessary due to unforeseen developments over the past several months, which were not included in the original budget proposal. The adjustments reflect a more accurate picture of revenue collections, including a projected $2 million increase based on new information from the Bureau of Budget and Management Research (BBMR).

Concerns were raised regarding the sustainability of revenue growth, particularly in light of federal funding that has bolstered finances in recent years. While federal funds are expected to phase out by September, there is potential for continued revenue growth, contingent on various factors.

The meeting also addressed the allocation of funds within the public health sector, noting a shift from general fund reliance to increased federal funding. This change has raised questions about the long-term viability of public health financing.

Additionally, the government plans to implement a liquid fuels tax abatement for fiscal year 2025, utilizing excess revenues from the current fiscal year. Discussions included potential infrastructure funding for the Chamorro Land Trust Commission (CLTC), which could facilitate residential development in underserved areas.

Finally, officials confirmed the status of the rainy day fund, which currently holds over $46 million. While the Government Finance Officers Association recommends maintaining six months' worth of expenditures in this fund, the current balance falls short of this ideal. For fiscal year 2025, an allocation of approximately $18.5 million is anticipated to be added to the rainy day fund, reflecting ongoing efforts to strengthen financial reserves.