Legislature advances bill to let Guam DOE use prior-year lapse funds, adds quarterly reporting

The Guam Legislature on May 18 advanced Bill 309, a measure intended to give the Guam Department of Education (GDOE) greater flexibility to use lapse funds from prior fiscal years, placing the bill on the third-reading file after several amendments and a day of debate.

"It doesn't create any new spending and it doesn't increase the budget," said Senator Boire, the bill's sponsor, arguing the measure would let GDOE pay outstanding obligations and address urgent needs without new appropriation. Lawmakers discussed a series of amendments that expand eligible uses, clarify language to include lapses “in prior fiscal years,” and add a specific reporting requirement for the superintendent.

The adopted reporting amendment requires the superintendent of GDOE to submit a detailed report, including the total amount of lapsed funds received under this act and any expenditures made, to the legislative oversight entity no later than 30 days after the end of each fiscal quarter. Senator Perez said the change ties up earlier concerns and will ensure transparency about how much is received and spent.

During floor discussion a public commenter cited an Office of Public Accountability figure, saying, “GDOE's FY2024 ending fund balance reflected a general fund surplus of $77,000,000,” and urged tight oversight. Other lawmakers questioned how much of that total was immediately available: members referenced a commonly cited breakdown of roughly $26 million in prior-year lapses and a separate $51 million tied to ARP salary reimbursements that may require federal clarification.

Supporters said the measure addresses urgent facility and operational needs — including special-education services and critical utility payments — while opponents and questioners repeatedly pressed for clear spending plans and assurances the funds will be expended promptly and appropriately. Senator Duenas and others pointed to committee work to ensure a fiscal note and project lists were available before full implementation.

With the amendments adopted and no objection to placing the bill on third reading, the sponsor moved the bill forward. The Legislature recessed and will resume at 09:00 the next morning.

The bill as amended now includes (1) authority for GDOE to use certain prior-year lapses for specified purposes, (2) expanded eligible uses added by floor amendments, and (3) quarterly reporting to the Legislature on amounts received and expenditures made under the act. The measure will return for final consideration on third reading.