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Guam Legislature advances substitute FY2027 budget, lowers business tax to 4%
Summary
On July 2 the legislature accepted a substituted FY2027 budget (Bill 266‑38 SU) that cuts the business privilege tax to 4%, cites roughly $63 million in excess revenues and proposes targeted increases for education and health while calling for performance‑based budgeting pilots.
Senator Duenas presented and urged acceptance of a substituted fiscal year 2027 budget (Bill 266‑38 SU) during the July 2 session, calling it a “discipline” and “accountability” plan and asking colleagues for support. He said the legislature cut the business privilege tax to 4% to return money to local businesses and families and argued that excess revenues were "tracking an approximate 63 million above projection." He also said budget lapses were "tracking at approximately $18.3 million."
The substitute budget, Duenas said, reduces the governor’s proposed total by about $46 million while still adding nearly $30 million in targeted priorities. He highlighted increases including $8.45 million for education, nearly $10 million for health care, and a $1.7 million boost for Guam Customs and Quarantine. The plan also includes about $5 million to support a private‑sector partnership for a Tumon Bay rescue base, $3.5 million for revitalization in the south and a pilot program to revive outrigger canoe paddling, and a requirement to pilot performance‑based budgeting in several agencies with additional training in FY2027.
After debate and an objection, the body accepted the substitute bill on a motion and members were given time to review the bill. The legislature scheduled resumption of more detailed consideration and additional proceedings for July 8 at 9:00 a.m.
Why it matters: The substitute budget would lower the business tax, reallocate priorities to education, health and public safety, and mandate pilot performance‑based budgeting — decisions that shape spending and services for FY2027.
What’s next: Members will reconvene for continued consideration of the substitute budget on July 8; committees and staff will prepare fiscal and programmatic details ahead of further votes.
