Lawmakers offered sharply different reactions Wednesday evening following Gov. Lou Leon Guerrero’s final State of the Island Address, underscoring political divisions as the 2026 election season intensifies.
Sen. Will Parkinson defended the governor’s record, pointing to budget surpluses, faster tax refunds and a reported 25% reduction in power bills tied to energy credits and new infrastructure.
“We went from deficits to surpluses, from tax refunds in years to weeks,” Parkinson said in a statement. “You can dislike the Governor, but you cannot erase the results. Math is stubborn like that.”
Parkinson argued that maintaining the Business Privilege Tax at 4.5% is critical to preserving fiscal stability, saying a further rollback would primarily benefit large corporations and military contractors that have already factored the higher rate into federal contracts.
Sen. Vincent Borja, chairperson of the Committee on Education, Libraries and Public Broadcasting, acknowledged progress in government finances and federal partnerships but called for "accuracy and transparency" in discussions about education funding.
Borja noted that the Guam Department of Education currently holds an accumulated surplus of approximately $77 million, saying that figure must be part of any “honest public conversation” about school funding. He added that funding alone will not resolve structural and accountability challenges affecting student outcomes.
Sen. Telo Taitague raised concerns about health care access, the military buildup and the potential loss of more than $100 million in American Rescue Plan Act funds. She said the Legislature declined to obligate certain ARPA funds for utilities after a court ruling exposed legal vulnerabilities and maintained that lawmakers have acted to advance plans for a new hospital.
“The Legislature has not been the barrier,” Taitague said, adding that long-term responsibility must guide decisions on pensions, health care stability and growth pressures.
The Democratic Party of Guam praised the governor’s address, calling it a “clear accounting” of seven years in office and crediting Leon Guerrero and Lt. Gov. Josh Tenorio with eliminating deficits, reducing debt and restoring federal credibility.
In her address, Leon Guerrero highlighted fiscal reforms, increased federal Medicaid support, tourism recovery and infrastructure investments, while warning against further tax cuts she said could jeopardize essential services.
As Leon Guerrero enters her final year in office, reactions to the speech reflect a broader debate over how Guam should balance fiscal discipline, tax policy and long-term investment in health care, education and public safety.