Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Lapses And Veterans topic
No spam. Unsubscribe anytime.
Senators press OFB over lapses and special‑fund treatment as veterans' office reports large projected lapses
Summary
Senators questioned OFB about projected lapses, use of excess revenues, and whether prior‑year lapses were available to agencies; the Guam Office of Veterans Affairs showed large projected lapses and senators warned cuts would undercut services while calling for agency oversight.
Senators pressed the Office of Finance and Budget for detail on lapses — money that agencies are projected not to spend by the end of the fiscal year and that reverts to the general fund. OFB said lapses are an annualized projection based on year‑to‑date expenditure trends and that, when appropriate, the general fund can be used to make agencies whole.
Multiple lawmakers complained the practice of reverting lapses to the general fund (or denying agencies use of prior‑year lapses) reduces transparency and can undercut essential services. One senator cited a BBMR letter dated Feb. 10, 2026, denying the Guam Office of Veterans Affairs (GOVA) permission to use prior‑year lapses and asked OFB to confirm it via the FMIS records; OFB said it would follow up. GOVA's FY‑26 appropriation was reported as $1,246,443, with projected lapses of roughly $639,213 (about half that appropriation), which several senators called alarming.
Lawmakers debated whether lapses signaled underspending because agencies had procurement or staffing bottlenecks or whether carryover practices compounded budgetary imbalance. Some senators argued that lapses should not be appropriated forward because doing so compounds underinvestment; others said lapses sometimes mask operational impediments and that the legislature should invite agencies to oversight hearings to explain unspent funds.
The debate also touched on broader priorities in the substitute bill. Senators criticized a roughly $40–43 million half‑percent business‑privilege‑tax reduction included in the substitute bill, arguing that the same resources could better support veterans' services, residential treatment for substance abuse, and other social programs. OFB answered technical questions about funds tracking and the governor's transfer authority but said there was no explicit authorization in the budget bill for the executive to use unappropriated excess revenues without legislative action.
No formal changes to the GOVA appropriation were made during the recorded portion of the session. Senators requested more detailed agency budget worksheets and asked OFB to post files to the shared drive so committees could assess lapses, special‑fund tracking, and whether lapses were truly available for program use.
The committee recessed for lunch with those oversight requests outstanding and with tensions evident between members prioritizing fiscal restraint and those pressing for restored program funding.
