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Senator questions placing USDA loan under general debt service instead of University of Guam pages
Summary
A senator queried why the 2023 USDA loan for the University of Guam appears under general debt service rather than the university's section; agency staff said payments will begin FY27 and the entry was placed under debt service because the payment will be made from the general fund, but agreed it could be moved back to the university's section.
A senator (S2) questioned why a 2023 USDA lease/loan tied to the University of Guam (UOG) appeared under the general debt-service section rather than within the university's budget pages. He argued the debt belonged to an endowment foundation and not the government and suggested the item should be under the University of Guam section as it was in the FY26 budget.
An agency official (S7) explained that the building is complete and that debt-service payments start in FY27; UOG had been authorized to pay from its general fund but had not materialized those payments previously. S7 said the only reason the loan appears under debt service was because the payment is proposed to be made from the general fund but acknowledged it could be moved under University of Guam for clarity. One senator observed that because the general fund would now cover the payment, the university effectively gained $5,000,000 when its previous $1,000,000–$1,500,000 obligation was shifted to the general fund; agency staff confirmed the $4,000,000 increase for UOG was inclusive of this payment.
The chair ended the round and directed senators to raise detailed concerns in the second round; no vote or final placement decision was recorded before the recess.
