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Lawmakers dispute whether UOG leaseback debt belongs in debt service or university operating budget
Summary
Senators debated moving a USDA lease/leaseback debt service line into a University of Guam section of the budget. Opponents said the obligation rests with the endowment foundation and cautioned about changing debt‑ceiling accounting; the chair read Public Law 33‑92 into the record during the exchange.
A later floor amendment prompted a long exchange over the University of Guam’s leaseback financing and how the debt‑service payment should be categorized in the FY27 budget.
Senator Titegui argued the line is a housekeeping change and that the underlying loan was secured by the university endowment foundation rather than the government’s debt ceiling. "This is just housekeeping measure," Titegui said, describing the arrangement and the university’s role in a lease/leaseback financing.
Other senators objected, saying public law and earlier appropriations show the legislature authorized payments and that the arrangement affects debt‑ceiling accounting. One senator asked for and the chair read Public Law 33‑92 into the record, which describes an appropriation (and an enumerated amount) tied to the Student Services Center and engineering annex leaseback. Senators requested OFB to appear and explain whether the obligation should be reflected in debt service or in the university’s operational budget.
The exchange focused on budget process and classifications rather than a new policy direction: senators wanted clarity about whether the endowment foundation’s loan would or would not increase the government’s debt ceiling if the general fund ended up covering the payment. OFB staff were invited to explain the accounting treatment to the body.
