Senator Shawn Gumataotao expressed optimism as the Legislature begins the fiscal 2026 budget process, emphasizing its importance as one of the body’s most critical mandates under the Organic Act of Guam. In remarks on the session floor, the senator acknowledged the work of the Committee on Government Finance and Operations, as well as public safety agencies, emergency management personnel, and the Guam National Guard, for their contributions to budget preparations. The lawmaker stressed that the budget, set to take effect Oct. 1, will shape how the government operates and will have lasting impacts on education, safety and health care.
While noting the hundreds of hours already spent on public hearings, meetings, and research, the senator warned that political disagreements may overshadow the process in the weeks ahead. Citing challenges such as high living costs, federal funding cuts, and a struggling tourism industry, the lawmaker urged colleagues to seek compromise to deliver a cost-effective spending plan that serves all residents. “Every taxpayer will be watching what we do,” the senator said, calling on the community to pray for the Legislature as it works to allocate resources in a way that benefits every man, woman and child on the island.
Day 3 of the Guam Legislature’s fiscal 2026 budget session continued Wednesday with senators engaging in a second round of questioning of Gov. Lou Leon Guerrero’s fiscal team and the Legislature’s Office of Finance and Budget, focusing on revenue adoption and how much the government will have to spend. A key point of contention was the substitute budget bill’s provision for a 0.5% reduction in the business privilege tax, or BPT, a move backed by the Guam Chamber of Commerce but opposed by the governor. Minority Democrats argued the rollback, costing about $40 million in general fund revenue, would be funded by waiving the government rainy day fund set-aside and reducing the income tax refund reserve by $12 million. Several senators, including Chris Barnett, Sabina Perez and William Parkinson, warned the proposal risks underfunding agencies, the hospital, and schools while primarily benefiting the wealthiest corporations.
Vice Speaker Tony Ada countered that the difference between the Legislature’s substitute budget and the administration’s proposal is just $7 million in a $1.3 billion budget, urging colleagues to focus on producing a balanced spending plan. He dismissed claims of a fiscal crisis, contrasting this year’s debate with past cycles when the government had ample cash. By the end of the day, senators narrowly approved an amendment by Sen. Gumataotao to restore the BPT rate to 4%, reversing the 4.5% initially proposed in the bill. The 8-7 vote split the chamber, highlighting deep divisions as lawmakers work toward finalizing a budget that takes effect Oct. 1 and will direct funding for public education, safety, and health care.
As legislators hashed it out on the session floor, the Governor released a series of infographics tilted, "Bad Broken Budget" breaking down "The Bad" and how to "Make It Good." The governor contends that 680 millionaires "get the tax break" while taxpayers "get the bill." She also noted that tax breaks could delay tax refunds with the reduction in the income tax refund reserve.
The governor's infographics encouraged senators to "keep the BPT at 5%. Protect government services, fund our priorities and stop price hikes before they start."