By Pacific Island Times News Staff
Guam is estimated to receive $80 million in Section 30 reimbursements in fiscal 2025, Guam Del. James Moylan said, noting that the projected level is $4 million higher than the collections from the current fiscal year.
The Section 30 projection was disclosed by Carmen Cantor, assistant secretary
for Insular Affairs, in her testimony before the House Committee on Natural Resources this week.
Section 30 funds represent the income tax payments attributable to military
and federal personnel stationed in Guam. In fiscal 2023, which was paid in October 2022, around $70 million was reimbursed to the government of Guam.
“This is great news from many angles. Section 30 funds usually aid in the
payment of tax refunds, hence more money will be circulated within our island’s economy," Moylan said.
“With the nearly $3.2 billion in economic activity secured in the 2024 (National Defense Authorization Act), and what is being discussed for the 2025 version,
we are optimistic in seeing the Section 30 reimbursements drastically increase over the next few years,” he added.
Vice Speaker Tina Muna Barnes promptly jumped in with new appropriation bills that would tap into the "windfall" to fund safety agencies, medical tuition subsidies, as well as the retention of local physicians and nurses.
“While the delivery of our next Section 30 reimbursement is months away, my goal is for the legislature to consider these proposals as soon as possible, so they can be included in our fiscal year 2025 budget deliberations,” Muna Barnes said.
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The executive budget request submitted in January projected about $74.2 million from Section 30. The new estimate indicated $5.8 million in new revenue that can be incorporated into the spending plan, Muna Barnes said.
“Directing this windfall into these departments and programs will help save lives, and build up our healthcare workforce," she added.
Muna Barnes' funding proposals are outlined in a series of measures introduced today:
Bill 298-37 (COR) invests an additional $700,000 in the Guam National Guard's local matching funds, so it can receive increased federal grants. According to the Guard, this greater subsidy will unlock a further $2 million worth of grants for our soldiers and airmen.
Bill 299-37 (COR) appropriates $1 million to the Guam Police Department for the purchase of patrol cars and security cameras along major roadways.
Bill 300-37 (COR) appropriates $1.3 million to the Guam Fire Department to purchase lifesaving vehicles and equipment, including those used in rescue and grass fire responses.
Bill 301-37 (COR) invests $900,000 into an existing physician retention program, which provides those who serve on Guam with financial support like loan repayments.
Bill 302-37 (COR) invests $900,000 into existing nursing recruitment and retention incentives that are managed by the Department of Administration.
Bill 303-37 (COR) invests $1 million to continue funding medical degree subsidies for local students who attend off-island universities through a program administered by the Guam Community College.
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