Gov. Lou Leon Guerrero has transmitted her Fiscal Year 2027 Executive Budget Request to the 38th Guam Legislature, outlining a spending plan she said is rooted in fiscal responsibility, realistic revenue and long-term financial stewardship.
In a news release issued Monday, the governor said the proposal avoids using excess funds from prior fiscal years and instead ties all spending to revenue expected within FY 2027. The approach, she said, is meant to prevent structural imbalances and protect the island’s financial stability.
"“At moments like this, leadership is not about political pressure,” the Governor said. “It is about stewardship."
The administration said the budget maintains the current 4.5% Business Privilege Tax rate, describing the move as necessary to sustain essential government services without returning to deficit spending. The release stated that relying on one-time funds to cover ongoing costs would only delay future shortfalls.
According to the governor’s office, the budget prioritizes public safety, health care and infrastructure. Listed investments include modernization of the Department of Corrections, debt service for Simon Sanchez High School, full funding for the Office of Homeland Security and Civil Defense, and continued support for health care, behavioral health and Medicaid-related systems. The proposal also includes funding for public safety staffing, technology upgrades and other essential government operations.
The release said the spending plan is designed to help Guam remain flexible amid potential changes in federal funding for disaster recovery, food assistance and mental health programs. Maintaining a balanced budget, the administration said, would allow the government to respond to shifts in federal policy without disrupting local services.
Leon Guerrero said the Legislature will have the opportunity to review and debate the proposal. She is expected to discuss the budget further during her State of the Island Address on Feb. 11.