The administration on Feb. 3 said government savings and advance fiscal planning helped stabilize operations this year, pushing back against claims that Guam avoided financial disruption by chance.
In a statement, Governor Lou Leon Guerrero and Lt. Gov. Josh Tenorio said prior-year savings helped maintain essential services but warned that relying on one-time funds to cover recurring expenses is unsustainable. The administration said permanent costs such as public safety, education and health care must be supported by ongoing revenue, not temporary reserves.
The release emphasized that police officers, emergency responders, teachers and health care workers require consistent annual funding, adding that savings alone cannot support long-term government obligations.
The administration also addressed debate surrounding the Business Privilege Tax, saying the issue is not about expanding government but aligning revenues with existing responsibilities. The statement argued that paying current expenses with current revenue prevents deficits and avoids shifting financial burdens to future generations.
The administration contrasted its proposed Fiscal Year 2027 budget with an alternative plan it described as relying on uncertain surplus funding. The release said the FY 2027 proposal includes current revenue to cover debt service for a new Simon Sanchez High School, while the opposing approach depended on what it called “phantom appropriations.”
The statement cited rising costs for fuel, construction materials, labor and health care as factors increasing government expenses, and warned that reducing revenue while expecting expanded services could lead to instability.
“The sky didn’t stay up because the risks were imaginary; it stayed up because the guardrails were in place,” the release said, urging continued fiscal discipline and planning.