Today, the Guam Legislature is working on the government of Guam's FY2024 Budget. Guam is at a pivotal moment, with an anticipated revenue surplus ranging from $121 million to $130 million for the government.
This surplus presents an opportunity to invest in our island's future but also demands responsible stewardship.
It's crucial to remember that the surplus stems from circumstances that have nothing to do with GovGuam's fiscal prudence: the federal government's massive pandemic stimuli, the ongoing military activity, and a significant 25 percent increase in the business privilege tax that our businesses have shouldered since 2018.
Rather than seeing this as a windfall for short-term initiatives, we must approach these funds with a long-term perspective that prioritizes fiscal responsibility, infrastructure enhancement, and sustainable economic development. We suggest that the Legislature allocate half of the surplus to initiatives that address immediate needs and lay the foundation for a more prosperous and resilient Guam.
Fiscal Responsibility and Governance
As mentioned in our previous statements, exercising fiscal discipline is essential in managing excess funds wisely. A temporary freeze on government salary increases should be instituted immediately. This would allow the government to better manage the surplus and avoid future financial strain. This pause would demonstrate the government's commitment to prudent fiscal management during a period of overabundance, ensuring that funds are available for critical investments that benefit the entire island, not just a few.
In tandem with the freeze, it is crucial that government departments and agencies strictly adhere to their current budget allocations. Instead of expanding budgets, departments should be encouraged to seek efficiency through cost-effective alternatives. For example, outsourcing the repair, maintenance, and upkeep of equipment and facilities can result in significant savings. Please give specific attention to outsourcing the maintenance of essential services like police cars, ambulances, and firefighting equipment. By entrusting these tasks to specialized private entities, the government can ensure that these critical resources are well-maintained while controlling costs.
Enhancing Guam's Tourism Infrastructure
Investing in Guam's tourism infrastructure is another critical area where we can spend surplus funds wisely. Our public parks and beaches are popular sites for our residents and major attractions for tourists. Immediate improvements to these areas can enhance the visitor experience and contribute to community well-being.
Upgrading and maintaining these spaces, particularly by ensuring that park restrooms are clean, functional, and accessible, will significantly improve the island's appeal.
Moreover, addressing environmental concerns is essential. Using part of the surplus to remove trash and abandoned vehicles from public areas will beautify our island, boost local pride, and enhance the tourist experience. Collaborating with village mayors and the military on removing abandoned cars could efficiently tackle this issue, showcasing a spirit of cooperation and shared responsibility.
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Infrastructure repairs should also be a priority. Potholes and broken pavement on key roads like Chalan San Vitores need immediate attention. Additionally, re-striping lanes on Marine Corps Drive from Piti to Yigo will improve safety and aesthetics, creating a more pleasant experience for residents and visitors. Another critical investment is the replacement of beach hazard warning signs. These signs are essential for resident and visitor safety, and their upkeep is crucial to promoting Guam as a premier tourist destination.
Long-Term Vision for Community and Economic Development
The proposed improvements should not be seen merely as isolated projects but as part of a broader vision for enhancing the quality of life for Guam's residents and ensuring the island's long-term economic prosperity. Investing in our infrastructure and public spaces can create a more vibrant and attractive environment for residents and tourists. These actions, in turn, can lead to sustainable economic growth by boosting tourism, a cornerstone of Guam's economy.
We must sustain this fragile industry. As the island becomes a more appealing destination, we can expect an increase in visitor numbers, which will, in turn, support local businesses and generate additional revenue.
As we stand at this crossroads, our senators must take a thoughtful and strategic approach to using this revenue surplus as they continue budget discussions. The recommendations outlined here represent a balanced, forward-thinking plan that prioritizes fiscal responsibility, enhances our tourism infrastructure, and supports long-term community and economic development.
The Guam Chamber of Commerce remains committed to advocating for the best interests of Guam's economy and community and urges ongoing dialogue between the government, the business community, and residents. We lay the groundwork for Guam's brighter and more prosperous future by taking proactive and actionable steps to spend this surplus wisely.
We welcome all comments and suggestions on how best to use the other half of the anticipated government surplus.
Catherine Castro is the president of Guam Chamber of Commerce.
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