[{"_1":2,"_123":-5,"_124":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99,111],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},"mediaId",6504614,"mediaKeyId","5576776-bfad24c1f4488d78bca72766e9f17a47","parentId",5576776,"title","Officials say EITC reimbursements not received; GMH and DOC leaseback deposits were not made","audioSeconds",146,"startMs",4666000,"endMs",4812000,"viewUrl","/Search/View?dp=1&key=5576776-bfad24c1f4488d78bca72766e9f17a47&start=4666&end=4812","thumbnailUrl","https://assets.pipeline.soar.com/5576776-bfad24c1f4488d78bca72766e9f17a47/thumbnail_4666000.jpg","articleUrl","/articles/6504614/Officials-say-EITC-reimbursements-not-received-GMH-and-DOC-leaseback-deposits-were-not-made","mediaUrl","https://secure.pipeline.soar.com/6504614-296978279f76fe8ae8ac9cd2fcaa9f89/orig.mp4?Expires=1773579784&Signature=Ar1xSU2nEryKHt81D4tCr3I3FbRx9c-VWa2GnJq7esGY9uVoCuhIZHd68qWFVwO-ascAyN4wUbSPCgdRrVanGJEbIywepJBn-5fEzi3HZGpGRAC6DBvU2gCpNWeinaGfB05sct1r-DOOyto1M2kegXH2rkuyYw0L42s4gYMpyZQ~oRIcDRgwKuJRuMNdyyTvp1wkr-6K6CXQkpf-me0vGidTlltmqSYxENcKH~4SApSOByMp~I0NPRezUpaAri5lVW~Hut8LohPkvbWaePPcp5rf4bFolsq0E0pi81qZP7BF4kTvTRowzBMXBCy8jv-ImHE0e2e0HYcCip3EQBRAhA__&Key-Pair-Id=KUT5TJCACFTXG","author","Guam Legislature","date","2025-08-13T06:15:48Z","article","Legislators asked about long‑standing financing arrangements for the Guam Health Care Campus (a leaseback financing) and the Department of Corrections modernization plan. Officials told the committee that Public Law 36‑56 pledged a $35 million annual lease payment for up to 40 years, to be funded by EITC reimbursement in FY2022 and then from the general fund in subsequent years. The administration said the EITC reimbursement was never deposited, so the lease payments described in the statute were not funded.

Committee members pressed whether GMH had access to funds or whether DOC had more than the $5 million appropriation authorized this year. The administration said DOC only has the $5 million appropriated for the current fiscal year and has used about $1 million of that so far; previous larger sums cited in other documents were not actually received or deposited.

On hospital reimbursement policy, a Department of Administration official told the committee that Tefra (cost‑based reimbursement) options have been discussed for years but that moving Guam away from Tefra toward a prospective payment system would likely require federal legislation. The administration said improving Medicaid reimbursement rates and addressing physician professional-service reimbursement rates (which use Hawaii-based comparators) could materially affect GMH revenues and would be a longer-term priority.

Committee members asked for written confirmation about the EITC reimbursement status and for clear accounting of what funds are immediately available to GMH and DOC.","mediaType","Video","parentTitle","38th Guam Legislature FY2026 Budget Session - August 12, 2025 PM PT.1","oneSentenceSummary","Officials told the committee that the $35 million annual lease payment pledged for the Guam Health Care Campus financing was never deposited because the expected Earned Income Tax Credit (EITC) reimbursement was not received; related annual lease payments to DOC were likewise not funded.","taxTitle","General Government Operations and Appropriations\t, Legislative, Guam, International","taxId",18139,"location","","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6504619,"Officials warn of federal grant cuts to PBS, Guam EPA, historic preservation; clearinghouse seeks to speed grants management training",520,3480000,4000000,"/Search/View?dp=1&key=5576776-bfad24c1f4488d78bca72766e9f17a47&start=3480&end=4000","https://assets.pipeline.soar.com/5576776-bfad24c1f4488d78bca72766e9f17a47/thumbnail_3480000.jpg","/articles/6504619/Officials-warn-of-federal-grant-cuts-to-PBS-Guam-EPA-historic-preservation-clearinghouse-seeks-to-speed-grants-management-training","https://secure.pipeline.soar.com/6504619-bd3284a2387252be65d0649bf9d655b7/orig.mp4?Expires=1773579784&Signature=Amk5Bbf8TuwsbgPvtOEVEGaBlfd9EGnItVQJoqphc0cR1PTUlKT8aKYitJWTsmVZue-1XFqBzJvW~p4cl2ofCnCIOuwBPMe7mZT8WnHD~H0US12k78OVald7bkA-OJR17B05ATfE1BrMDv22m2Gl5utY~3y5uu5okBr7-BNpUppqyPuctCnWPEyvOIn6D9qj1-ulWwUeRjbCD85XuxlDyMDLGeMssAB5SwyUQAjO4O-W19hcsGY1gBdBkzkhpgMrlIPnlmNVOExBL~HM4kObpiafffeWGKzv9od5yIe51kDIEYXnu~mk-jFQhqxv-bJiElA1I-RaxZuc5UgGUS-KEw__&Key-Pair-Id=KUT5TJCACFTXG","Committee members pressed the Guam State Clearing House and agency representatives about possible federal grant cuts and what local funds or capacity might substitute if grants are reduced or zeroed out.

Stephanie (Guam State Clearing House) told senators that some federal grants face cuts or uncertain renewal under recent federal budget changes; she named the Pacific Broadcasting Service (PBS) and Guam Environmental Protection Agency as agencies that reported potential shortfalls and said Historic Preservation had been dropped from the FY26 federal budget as reported to her office. Stephanie said the Clearing House is contacting grantees to collect up-to-date award and expiry information and expects to provide a compiled impact list to the legislature by Friday.

The Clearing House also said it had an open grant cycle for Department of Interior technical-assistance (TAP/MAP) with roughly $350,000–$400,000 available this year (annual TAP/MAP allocation roughly $350,000) and that Interior’s revised conditions capped awards per project at $400,000. Stephanie said her office received a separate Department of Interior grant for grants-management training to strengthen local capacity and that the office expects the RFP to contract a training provider to improve administration across agencies.

Senators pressed whether agencies would need local dollars to replace cuts; Stephanie said the office is compiling the list and will indicate zeroed-out federal items that would require local replacement. Senators noted PBS and Guam EPA as priorities and asked the administration to provide specific figures for appropriations if federal funds do not materialize.

The Clearing House said most agencies have some grant administrators and quarterly reporting; it reported six Clearing House employees (not including the director) and said a grants-management course RFP had been issued to build capacity across agencies.","Committee heard preliminary agency reports of federal grant reductions (PBS, Guam EPA, coastal management, historic preservation); Guam State Clearing House said it is collecting updated federal-impact numbers and has a grants-training grant of about $500,000 to improve management capacity.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6504624,"Administration urges cash appropriation to accelerate Simon Sanchez rebuild; warns delay could reduce scope",569,2341000,2910000,"/Search/View?dp=1&key=5576776-bfad24c1f4488d78bca72766e9f17a47&start=2341&end=2910","https://assets.pipeline.soar.com/5576776-bfad24c1f4488d78bca72766e9f17a47/thumbnail_2341000.jpg","/articles/6504624/Administration-urges-cash-appropriation-to-accelerate-Simon-Sanchez-rebuild-warns-delay-could-reduce-scope","https://secure.pipeline.soar.com/6504624-43b50c548b713e39ed80b17421516b4f/orig.mp4?Expires=1773579784&Signature=VqmxnykCDpymX83hk8Imhc3XhT8k-lXbOXDRUUGFXLtsTSdd-qpGicK~TT2NC7vYPHKy0rmnu3q3edyQ5PPSMByahPUoUWhEvJnsG9R8D7ZhsVNcuPqcjEUwiOWTHNIJMU5eCOY66NWYT-aBxfV~lHwEtLv8Dc1bd~BiQdGrEWMgHRchST0wxDQw3gOdovP2qxQB0TkTqVd2TZhQRHAMBZ8E0nIqjSQh7NwXCgxIhvcWk6s74S6d2n2ds8kgR0DFLP1fkSaO6O-UsnloYqpW9sG81deaSJsgtBQ0KarRYcqS2fjpCAGoKyU3f6KM3DBrtmZMFti0wjoP2tvJojjpQw__&Key-Pair-Id=KUT5TJCACFTXG","Senators asked administration officials whether failing to include a cash appropriation for Simon Sanchez High School in the current budget would slow or reduce the planned rebuild. The administration urged legislators to appropriate cash to augment earlier authorizations and financing, saying cash would reduce capitalized interest and allow a more complete design and construction outcome.

An administration fiscal official explained the current authorization covers design and some financing, but rising construction costs mean the originally-authorized borrowing may not produce the full design stakeholders expect. The official said that securing cash in this budget would enable a better outcome (they used the analogy that without cash “we’d be getting a Corolla, not a Lexus”), whereas relying solely on borrowing could require trimming design elements or delaying construction while the administration pursues financing. The administration noted its borrowing plan typically capitalizes interest during construction but that the availability of cash would reduce that pressure.

Committee members asked whether bidding and preconstruction work would stop if no cash is appropriated now. The administration said the lack of an immediate cash augmentation would likely slow the schedule because funds must be certified before a construction contract can be awarded; officials said design work is underway and that demolition and initial activity would follow once funding and contracting details are settled.

Senators also raised the structure and timing of available transfer authorities and whether the governor could use transfer authority to cover urgent needs at DOE or Guam Memorial Hospital authority (GMH). The administration told the committee that the governor’s transfer authority traditionally applies among executive-branch agencies and not to reserve departments such as DOE or GMH, and that an emergency drawdown in such cases would require legislative action and transparency.

Committee members requested updated cost estimates, a clear timetable for procurement and demolition, and clarification about what a cash appropriation this year would buy compared with relying on the existing authorization and financing.","Officials and legislators debated whether to include a direct cash appropriation to augment an existing authorization for the Simon Sanchez High School rebuild; the administration said cash would reduce capitalized interest and allow a fuller design, while absence of cash risks a downsized project and a slower schedule.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6504629,"Administration cites resource shortages, federal complications for delayed audits and tax enforcement gaps",518,666000,1184000,"/Search/View?dp=1&key=5576776-bfad24c1f4488d78bca72766e9f17a47&start=666&end=1184","https://assets.pipeline.soar.com/5576776-bfad24c1f4488d78bca72766e9f17a47/thumbnail_666000.jpg","/articles/6504629/Administration-cites-resource-shortages-federal-complications-for-delayed-audits-and-tax-enforcement-gaps","https://secure.pipeline.soar.com/6504629-7984170acf35d08c5cf2210b79ab4190/orig.mp4?Expires=1773579784&Signature=HFkXeQbNf6exEUbdFLYAw1toe90hao642CHLcfgkl-OUWtrQafRBX10xGM~eD1AC92P-tNan1bOJB7P95mV4RpdaZhKhpRCTzunXGfHl10aeYwUzgjR0~deaw6OkG0p78tkf-sp1cW~aGl7e~DXXZVWyke9F4VeVmVfa28Q03RPctHbC9YJwq6S53fhl7INKn2sZI-BPctDS6vGHl2rdxgLjGarH~vubo3tWRothwxLrKHb2lBnD-tetEJT--zvg~je6otueeDOQMsZSunMyh59xC5vcalT1n8J-8tSIjJsQ5KkQzHgVq1gexwAHnFnS4fvSfEQ~tiOkHY-ip5uYqg__&Key-Pair-Id=KUT5TJCACFTXG","Senators pressed administration officials about late financial audits and repeat audit deficiencies during the Committee on General Government Operations and Appropriations hearing. The administration described multi-year audit delays and linked them to staffing shortfalls, increasingly complex federal funding, and outstanding component-unit audits that must be completed before an overall general-fund audit can be finalized.

An administration staff member (identified in the hearing as Lester) told the committee their office has been working on the audit for “the last 3 years nonstop” and cited a shortage of trained accountants across government and additional complexity caused by federal grant funding and a delayed Department of Education audit. The staff member said the administration has applied for and expects a Department of Interior grant (about $250,000) to help complete the single audit but emphasized hiring and training are needed to use those funds effectively.

Senators also questioned Department of Revenue and Taxation staff about longstanding “tax leakage” and specific branches, including BPT and the examination branch. DRT staff (Carolyn Rivera) said BPT historically has been understaffed (noting just two full-time employees in the BPT branch) and that collection and examination units would benefit from additional hires. DRT proposed adding approximately three employees to BPT and around 15 additional staff in collections and examination, with pay ranges described as starting in the low–mid $30,000s for junior auditors and up into the mid-$50,000s for senior auditors depending on grade and step.

Committee members asked whether the administration needed statutory authority to offer above-step hiring to compete for qualified accountants; DRT and OFB said above-step hiring could help recruitment and asked the legislature to consider studies or temporary authorities to make positions more attractive. DRT also described efforts—including overtime and an internship/training program with the University of Guam—to recruit and retain accounting staff.

Senators requested a written list of sole-source contracts for the prior fiscal year and asked DRT and OFB to deliver more granular numbers on staffing needs, current vacancies, and a timetable to complete the single audit.","Administration officials told the committee audits are late due to limited accounting staff, complex federal funds, and pending component unit reports; DRT described understaffing in key branches and requested targeted hires and hiring-flexibility to address tax leakages.",{"_33":112,"_35":36,"_37":38,"_39":113,"_41":114,"_43":115,"_45":116,"_47":117,"_49":118,"_51":119,"_53":120,"_55":56,"_57":58,"_59":121,"_61":62,"_63":64,"_65":122,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6504633,"Guam lawmakers debate rollback of business privilege tax and revenue trade-offs",6906,1574000,8480000,"/Search/View?dp=1&key=5576776-bfad24c1f4488d78bca72766e9f17a47&start=1574&end=8480","https://assets.pipeline.soar.com/5576776-bfad24c1f4488d78bca72766e9f17a47/thumbnail_1574000.jpg","/articles/6504633/Guam-lawmakers-debate-rollback-of-business-privilege-tax-and-revenue-trade-offs","https://secure.pipeline.soar.com/6504633-230cfbf17531beb24351edb54b293d35/orig.mp4?Expires=1773579784&Signature=FwryqpMH379YLxjmvjszVBCGq9sBNpVFOtwrEof2M7ottFQGkegajBkPPDLjhBxdhgy0xbiPesMWJv85zru-MIUdHIFDc2WG4BhfOXooIX7EAlEt9O0JAx1WTfUsb6VhGWIZjvFn2DH62zPWZzD6p4DVw3d4zm9C7BGIkDc5YL0rD0MtnnsZqazhVg92moM2y3SgajgV7bLjzz71Ov4Rz8J0M0vB4I8xVURBatwy4yERIMtHzDIEp6q6uAHFUxoz-XQKS91ZARwvg6W3203~C6MdBVqj5Jtti-EeVLgs9JcL12HKgS46dxi5zHZldUsCOSRPE53uubFcXs30kA0WBw__&Key-Pair-Id=KUT5TJCACFTXG","Lawmakers at the Committee on General Government Operations and Appropriations heard extended questioning and analysis about Bill 11-38 (the substitute BPT rollback), including how the tax is applied to different business types and how revenue would change under a 4% or 4.5% rate.

The committee’s discussion centered on what businesses are taxed on gross receipts versus net income, and on the projected revenue loss if the BPT is cut from the current 5% rate. Senator Tina Rose Muña Barnes and Senator Mary Perez pressed Department of Revenue and Taxation staff for legal and technical distinctions and for a line-by-line calculation of impacts by taxpayer band.

The administration and DRT officials told the committee that most BPT categories are measured on gross income or gross proceeds of sale (for example: retail sales, services, contractors and professions), while some categories use net income (notably banks and banking institutions). DRT staff summarized statutory language showing banks are taxed on net income with prescribed deductions (salaries, interest, rents, ordinary operating expenses), and that many service, retail, contractor and insurance categories remain measured on gross receipts.

Committee staff and the administration presented revenue-sensitivity modeling. Using the taxable base cited in the hearing, a cut from 5% to 4% across the full taxable base would reduce BPT receipts by roughly $80 million annually on the aggregate figures shown to the committee; a 4.5% rate instead of 5% would lower receipts by about $40 million. For a narrower band (taxpayers with taxable income between $50,000 and $2,000,000) the staff calculation showed a difference of roughly $13 million between 5% and 4% for that segment alone. DRT emphasized the modeling used calendar-year tax bases for quick analysis and recommended further fiscal-year-aligned estimates.

Legislators asked how a BPT rollback would interact with corporate income receipts, noting that a lower BPT could increase reported corporate income and partially offset revenue loss. Officials said those offset effects are possible in principle but require detailed behavioral and timing analysis to quantify. Senator Joe Shumake and others asked the administration to produce a written sensitivity analysis that ties BPT rollback percentages to projected changes in corporate tax receipts and withholding, and to provide it to the committee before additional votes.

No final vote on Bill 11-38 occurred during the hearing; committee members requested additional written analysis and statutory citations before taking further action.

The hearing excerpt: “If we lower BPT from 5 percent to 4.5 or 4 percent, the aggregate loss is in the tens of millions; we need the administration to model offsets and corporate effects,” summarized a committee aide during the Q&A.

Looking ahead, the committee requested that DRT and the Governor’s fiscal office (OFB) deliver an integrated revenue sensitivity report (BPT rollback scenarios, expected corporate-income offsets, and updated withholding/refund projections) to inform any final amendment or vote.

Votes and formal enactment steps on Bill 11-38 were not recorded in the transcript.","Lawmakers and administration officials debated a proposed rollback of the Business Privilege Tax (BPT), how different business types are taxed (gross vs. net), and revenue-modeling showing a $40 million–$80 million annual gap depending on rollback level.","actionData","errors"]

Article not found

Officials say EITC reimbursements not received; GMH and DOC leaseback deposits were not made

Officials warn of federal grant cuts to PBS, Guam EPA, historic preservation; clearinghouse seeks to speed grants management training

Administration urges cash appropriation to accelerate Simon Sanchez rebuild; warns delay could reduce scope

Administration cites resource shortages, federal complications for delayed audits and tax enforcement gaps

Guam lawmakers debate rollback of business privilege tax and revenue trade-offs