The Guam Education Board during a special meeting Monday approved Resolution 2026-13, adopting spending priorities and cost-cutting measures to address a $34.8 million budget shortfall for fiscal 2027, while also asking the Guam Legislature to provide funding for teacher raises already signed into law.
A $34.8 million gap
GDOE requested $307 million from the Guam Legislature to operate the government's largest agency. However, the department ultimately received a fiscal 2027 appropriation of $271,915,569, leaving a roughly $35 million gap and prompting education officials to prioritize spending and implement austerity measures through the resolution.
"You're directing then the superintendent is to utilize their approved spending priority to create individual school and division budgets centered on curriculum and safety and facilities, and to observe transfer authority to lead and prioritize the funding of excellent youth and corporations to adequately provide 180 days of instruction," Superintendent Judith Won Pat said.
The resolution also directs the superintendent to implement austerity measures to reduce and contain costs associated with locally funded GDOE programs and align budget limitations and staffing requirements under the collective bargaining agreement with the Guam Federation of Teachers through renegotiations.
"It also urges the superintendent to prioritize the filling of CBA positions. CBA simultaneously acknowledges that the board acknowledges the superintendent's sole authority over operations and the need to fill critical positions as a result of government resignations or in death," Won Pat said.
Rising costs questioned
Board member Peter Alexis Ada questioned rising costs despite declining student enrollment.
"The question that was going to pop up in many of the legislatures' minds is our numbers of students have decreased, but it doesn't seem to show that the numbers being requested reflect that," Ada said.
GEB Chairwoman Judith Guthertz responded that "our costs have increased."
Won Pat further explained that most of the cost increases are related to personnel expenses resulting from legislative or executive actions, including an educator salary increase four years ago. She said the department is reviewing master schedules to remain within class-size limits established in the collective bargaining agreement and make fuller use of existing staff.
Ada also questioned the rationale for requesting additional funding while the department has lapse funds.
Won Pat stressed that personnel costs continue to increase with recent Educator Pay Plan adjustments. Although the department is looking at $51 million in federal reimbursements, Won Pat said GDOE is "not able to use that dollar amount for the Educator Pay Plan."
According to outgoing Deputy Superintendent of Finance and Administrative Services Franklin Leon Guerrero, the department had $26 million in lapse funds, but the remaining $5.8 million and associated projects were incorporated into the $51 million spending plan. He stressed that all lapse funds have been allocated.
"When you add that money that we transferred over and add the other things on the spend plan it accounts for the entire $51 million including that $5.8 million that was transferred," Leon Guerrero said.
Two amendments
Before adopting the resolution, the board approved two amendments.
The first asks the Legislature for "new funding and or additional funding" to cover the 15% teacher pay raise signed by the governor. GDOE has told lawmakers it cannot cover the increase through its current appropriation. The board specified that the funding should be new and not taken from the department's existing budget.
The second amendment directs the superintendent to prioritize funding and reclassifying staff in the Internal Audit Office. Board member Maria Gutierrez said she would not support the resolution without the provision.
"I am not going to vote on this resolution if the IOA are not included," she said, adding that a promised reclassification has been delayed for years.
The superintendent said she had written to the Department of Administration and spoken with human resources and the finance office but did not provide a firm completion date. GDOE said the funding would come from a vacant coordinator position in the Facilities and Maintenance Division.
A third change acknowledges that the incoming board, which will be seated Jan. 3, 2027, can revisit the spending plan and make adjustments. Board member Angel Sablan had earlier suggested limiting approval to the first quarter out of consideration for the incoming members.
Frozen accounts and open obligations
Before the resolution was adopted, GDOE said fiscal 2027 accounts were open only for payroll and school operating contracts.
GDOE also said the spending plan established through the resolution does not include any new positions outside the Facilities and Maintenance Division.
Guthertz also raised concerns about repair costs at Tiyan High School, a leased property, which the department does not have funding to cover.
Leon Guerrero asserted that GDOE has not agreed to pay for repairs, including roof or structural repairs, at Tiyan, adding that those costs should be covered by the landlord.
Guthertz said she believes the contract involving Tiyan High School is "illegal" under Guam procurement law because of a provision identifying a sole contractor for repairs.
"Please present these contracts again. I'm asking to the new Attorney General for their review and consideration, cost-benefit analysis, and recommendation to the new governor of Guam on how this 2014 is amended and new portions of its contract should be addressed," Guthertz said.
The adopted resolution will be transmitted to the speaker of the Guam Legislature and the chairs of the Ways and Means and Education committees.