Legislature approves $16.38M for Simon Sanchez rebuild, restores rainy day funds; proposed tax rollback fails

The Guam Legislature on Aug. 4 moved several budget amendments tied to the FY26 budget bill, approving a $16,377,125 appropriation to cover construction leaseback payments for Simon Sanchez High School and voting to deposit up to $10,000,000 from projected FY2025 unobligated general fund revenues into the general fund reserve (the rainy day fund). Lawmakers debated but rejected a substitute amendment that would have created a tiered business-privilege-tax rollback that raised rates on the largest corporations while lowering rates for many smaller businesses.

The Simon Sanchez appropriation was offered by Senator Joe St. Augustine (JSSA L16 P7). St. Augustine read language that would appropriate $16,377,125 from the “net projected unobligated fiscal year 2025 general fund revenue balance as identified in the June 2025 consolidated revenue and expenditure report” to pay construction leaseback obligations for Simon Sanchez High School. After extended floor debate and a technical amendment to place the appropriation in a standalone section, senators voted to approve the appropriation. Supporters said the money is needed so the long-delayed rebuild can move forward; opponents did not contest the floor motion during the final vote.

Supporters highlighted procurement delays and cost increases since the public law authorizing the project passed. Senator Duane (floor comments) said the public law authorizing the project already allows the government to go to market but that delays in issuing the request for proposals have increased costs, including interest and inflationary pressure. Multiple senators who identified themselves as former students or who represent the affected community urged passage so the project…