The 38th Guam Legislature convened on August 15, 2025, for a budget session focused on the Fiscal Year 2026 Executive Budget Request (EBR). The meeting highlighted significant concerns regarding funding for the Department of Education (DOE) and the overall budgetary process.

The session began with discussions on the limitations faced in formulating the EBR, particularly the lack of input from the DOE. Legislators emphasized that the budget presented was primarily based on traditional funding levels and did not reflect a comprehensive analysis of the needs across all agencies under the governor's control. The Office of Finance and Budget (OFB) clarified that the EBR was a starting point for discussions rather than a finalized product.

A critical point of contention arose regarding the financial needs of the DOE, with reports indicating that the department could face severe operational challenges, including potential layoffs and school closures, unless an additional $40 million was allocated. This figure was underscored by a recent article from the Pacific Daily News, which raised alarms about the sustainability of current educational services.

The conversation shifted to the discrepancies in revenue projections, with a noted difference of $47 million between the governor's proposed budget and the needs expressed by the DOE. Legislators pointed out that the budget discussions had not included coordinated calculations with the DOE, leading to gaps in understanding the full financial picture.

The meeting concluded with a call for more collaborative efforts in budget formulation to ensure that all agencies, particularly the DOE, receive adequate funding to meet their operational needs. The legislators acknowledged the urgency of addressing these financial gaps as they move forward with the budget process for the upcoming fiscal year.