FOR IMMEDIATE RELEASE (August 31, 2021 – Hagåtña, Guam) Speaker Therese Terlaje has issued the following statement in support of Bill 55-36 (COR) As substituted by the Committee on General Government Operations, Appropriations, and Housing; and amended in the Committee of the Whole – AN ACT MAKING APPROPRIATIONS FOR THE OPERATIONS OF THE EXECUTIVE BRANCH OF THE GOVERNMENT OF GUAM FOR FISCAL YEAR ENDING SEPTEMBER 30, 2022, MAKING OTHER APPROPRIATIONS, AND ESTABLISHING MISCELLANEOUS AND ADMINISTRATIVE PROVISIONS:

“After weighing out the pros and cons, I have voted in favor of the FY22 Budget.

In an historic setting precedent, the FY 2022 budget adds $20 million to the FY 2021 provision for tax refunds and the cash will allow refunds to be paid faster and for DRT to catch up on outstanding refunds from prior years. With the help of my colleagues, Senators Sabina Perez, Telo Taitague, Joanne Brown, Vicente “Tony” Ada, Jose “Pedo” Terlaje, Clynt Ridgell, and Frank Blas Jr., I was able to pass an amendment that would capture $20 million in revenues above what was projected for 2021 and place them in a lockbox for tax refunds still outstanding for 2020 and prior years. The budget bill, with this amendment, ensures that additional revenues collected in FY 2021 are used only to pay back tax refunds.

It is my hope that this will signal a change in the culture of prioritizing tax refunds owed to the people of Guam rather than continuing the status quo practice of spending next year’s cash for prior year returns and beginning every fiscal year in the red.

In addition, the budget contains provisions as follows:

·       Provides for pay studies for teacher and law enforcement to be completed within months

·       Ensures scholarships are prioritized to entice students to enter fields with long standing shortages like healthcare, education, and social work. 

·       Allows for small agencies to continue to operate at the same levels

·       Dedicates all highway fund balances for additional roads as I started several years ago

·       Continues to allow agencies with critical needs to hire retirees so that we can fill teacher shortages, nurse shortages, social worker shortages

·       Directs savings from bond refinancing in FY22 toward food banks to address the continuing needs of struggling families

·       Provides funding for stray dog issue that threatens village safety

However, some of the larger agencies like DPHSS and GMH will be relying on federal funds this year but we have been assured that they are entitled to those funds already under laws passed by Congress.  We have also been assured that the Governor has promised to cover any shortfalls for critical healthcare agencies with ARP Funds.

The FY22 Budget attempts to take the expected new earned income tax reimbursements and set those aside for a new hospital and other uses but I added provisions that I hope will allow Department of Revenue and Taxation the flexibility to enter into an agreement with the federal government to lock those funds directly for refunds as necessary.

This will be my fifth budget since I have been in office that is conservative, and will hopefully result in a surplus instead of a deficit. With an unprecedented amount set aside for tax refunds and a more conscious approach toward budgeting for the government of Guam, it is my hope, that by example, I will continue to lay the foundation for a shift in culture to more fiscal responsibility.

The Legislature has done the best it could with the information available to us, even though the plan for $600 million in ARP funds has still not been shared by the administration. I sincerely hope the plan will be shared with the people of Guam shortly so we can have a complete picture of how this budget and ARP funds will move our economy forward, improve government services and provide needed assistance and relief to our community.

The annual fiscal budget is the single most important policy document for the government of Guam and the key responsibility of I Liheslaturan Guåhan.  But a successful budget requires continuous oversight and transparency, adherence to the law and spending priorities contained in the law, and critical checks and balances for the benefit of the people of Guam.”

FOR IMMEDIATE RELEASE (August 30, 2021 – Hagåtña, Guam) Speaker Therese M. Terlaje’s fourth attempt to pay the people of Guam their tax refunds faster passed on the session floor this weekend.

GovGuam owes $23 M in processed returns awaiting payment for 2020 and previous years, according to the July refund report. There are also 6,800 returns from 2020 that have not been processed, which could mean another $20 M owed. The budget bill prior to her amendment provided only $74 M for tax refunds in FY 22 even though BBMR asked during the Committee of the Whole for an increase in the tax refund provision to at least $87 M to ensure there is enough cash to pay out the tax year 2021 EITC tax refunds and non-EITC tax refunds on top of the 2020 amounts. Instead of increasing the tax provision for refunds, the Legislature earlier last week decreased the current budget bill’s tax refund provision to $67.9 M, an amount far less than needed to pay back the people of Guam. Ninety-five million dollars was set aside in FY 21 for tax, EITC tax, and non-EITC tax refunds.

Speaker Terlaje, with the help of some of her colleagues Senators Sabina Perez, Telo Taitague, Joanne Brown, Vicente “Tony” Ada, Jose “Pedo” Terlaje, Clynt Ridgell, and Frank Blas Jr., passed an amendment to immediately set aside additional funds from FY 21 revenues to offset the reduction to $67.9 M in FY 22.

Current tracking of FY 21 General Fund revenues as of July 31st shows a surplus of $22.3 M, with only 2 months unaccounted for left in the fiscal year. When there are higher revenues collected than the adopted amount in the Budget Act at the end of the fiscal year, the administration has controlled where those funds go despite prior attempts by the Legislature to direct those funds to the hospital and refunds. Speaker Terlaje believes that those funds should be controlled by the people of Guam, so she proffered an amendment on the session floor Saturday night to adjust the adopted FY 21 amount for Withholding Tax Revenue and deposit the additional cash into a trust for tax refunds.

Speaker Terlaje advocated for her amendment by saying, “Now is the time to secure this year’s potential surplus and dedicate it to refunds, especially because the Governor said she will cover pandemic-related shortfalls next fiscal year with ARP funds. We’ve already taken other lapsed funds and refinancing savings from FY 21 and given them to agencies for the upcoming year. This is just another one of the Legislature’s creative efforts to give cash back to the people the government owes.”

The amendment specifically increased the FY 21 Withholding Taxes Revenue by $20 M, an increase justified with current CRER tracking being $34 M over the expected amount and the overall surplus of all revenues estimated to be $22.3 M. The amendment also secured that the additional $20 M be deposited in the Income Tax Refund Efficient Payment Trust Fund before October, making sure that the money goes only towards tax refunds.

“People are facing great need. The legislature can control those potential funds without harm to any government agencies and help provide for all taxpayers and get their refunds faster,” stated Speaker Terlaje.

FOR IMMEDIATE RELEASE (August 27, 2021 – Hagåtña, Guam) Speaker Therese M. Terlaje tried to pass an amendment this afternoon to improve operations for Guam’s State Historic Preservation Office (SHPO) by increasing its budget by $110,000 but received little support from her colleagues on the session floor. This year’s proposed allocation for SHPO was approximately $50,000 less than FY 2021, despite the division repeatedly requesting $400,000 more for six additional positions. 

“All I am trying to do with this amendment to the budget is get SHPO back up to their FY 21 budget and allocate an additional $60,000 more to them,” said Speaker Terlaje. “I’ve attended past hearings where we called SHPO out for not enforcing the way they should be, why we aren’t getting their reports like we should be, why the public can’t be notified of the human remains they are discovering on military construction sites like they should be.  They continue to tell us that it’s because they are understaffed. This extra allocation is not enough to fund another needed position for their division, but it will give them a fighting chance at preserving our island’s resources better.” 

The amendment to increase funding by $110,000 to the SHPO failed with only 5 votes in favor from Senators Sabina Perez, Joanne Brown, Telo Taitague, and Christopher Duenas.  The nine senators who voted against the increase were Senators Amanda Shelton, Telena Nelson, Joe San Agustin, James Moylan, Tony Ada, Frank Blas Jr., Mary Torres, Pedo Terlaje, and Clynt Ridgell. 

The Speaker subsequently introduced another amendment to bring SHPO’s budget back to its FY 21 allocation. This amendment passed, bringing the division’s budget to at least status quo. 

“This was the Legislature’s opportunity to prioritize the protection of our history and culture by increasing the SHPO’s capacity to protect our historic and cultural sites.  More resources are needed especially when precious cultural artifacts and human remains continue to be discovered and removed as a result of the increasing number of federal and local projects undergoing construction at this time,” stated Speaker Terlaje.

FOR IMMEDIATE RELEASE (August 26, 2021 – Hagåtña, Guam) Three attempts. That’s how many times Speaker Therese M. Terlaje has tried so far to amend the current budget bill to set aside enough funds to cover and pay out overdue tax refunds faster.

Despite the Department of Revenue and Taxation’s quicker processing rate, tax refunds still await payment. Speaker Terlaje’s three attempts to get those paid faster include:

• increasing current Business Privilege Tax (BPT) projections to mirror current increased tracking;
• setting aside excess BPT revenues every 6 months; and
• setting aside Earned Income Tax Credit (EITC) reimbursements not needed for financing the new hospital.

All three efforts failed to receive enough support from other senators on the session floor.

Speaker Terlaje said, “I cannot fathom how this body finds it okay to make the people wait, especially this year when we’ve professed that they need RISE money now, that they are running out of PUA now. If agencies have needs, let’s get the Governor down here to show her what those are. She’s sitting on $600 million that can be used to take care of those needs. The ARP cannot be used to pay tax refunds, it is us, the legislative body who has that power to set aside cash for that purpose.”

The budget bill as it stands does not have enough cash set aside to take care of prior year and FY 2022 tax refunds. The bill sets aside $15 million of the $55 million needed for EITC payments, saving the other $40 million for projects that will be completed beyond 2023.

Instead of increasing the provision of tax refunds, an amendment proffered by another senator was passed on the session floor today to lower the amount set aside for tax refund payments by an additional $6 million. Speaker Terlaje is disappointed that the amendment passed: “If we go through with what is in the budget right now, we might exacerbate the delay in refunds waiting for cash. We have an opportunity in front of us to get rid of those delays. We don’t need Congress to tell us to pay refunds faster. We need to do our jobs in the budget and set aside the cash for what we owe the people, not spending it on pet projects.”

Speaker Terlaje plans to make another attempt to secure the cash needed for tax refunds in later chapters of the budget bill.

FOR IMMEDIATE RELEASE (August 20, 2021 – Hagåtña, Guam) In her continued effort to get tax refunds out faster and on par with other jurisdictions, Speaker Therese Terlaje again urged her colleagues to support prioritizing additional general fund revenues received to pay tax refunds.  Even with the vast improvement by DRT in processing refunds, GovGuam still owes almost $20 million in processed returns awaiting payment for previous tax years, including 2020, and almost 7000 returns from tax year 2020 that have yet to be processed. If the status quo of setting aside only a minimal amount for tax refunds is not changed in this budget, GovGuam will continue to be behind in refund payments. 

An amendment proposed by the Speaker would have set aside excess BPT, Corporate Taxes and Withholding Taxes and lock it up for tax refunds in the middle of the fiscal year and again at the end of the fiscal year based on monthly Consolidated Revenue and Expenditure Reports.  In previous years, legislative attempts at appropriating excess revenues solely at the end of the fiscal year for efforts such as GMH roof repairs had been stymied by the administration’s disregard for the provisions in previous budgets and laws, and have been instead used to pay “deficits” that have not been publicly itemized. 

“My amendment would have at least tried again to lock it up so it would not be used by the administration for any other purposes other than tax refunds, mandating it be deposited into the tax refund trust account.

This is the year that the government of Guam does not need to borrow taxpayers’ money to pay for other government obligations first.  The Legislature has tried for years unsuccessfully to prioritize the spending of excess revenues.  I wanted to lock up the money earlier and give it back to its owners, that’s all,” stated the Speaker.

The amendment did not pass but did garner the support of Senators Sabina Perez, Telena Nelson, Jose Pedo Terlaje, and Telo Taitague.

FOR IMMEDIATE RELEASE (August 19, 2021 – Hagåtña, Guam) During the critical revenue portion of the budget process, Speaker Therese Terlaje urged her colleagues to prioritize taxpayers and pay refunds before any other priority of the government. The Speaker introduced an amendment to raise the BPT provision from $238 million to $280 million, projected by BBMR, and puts the additional $42 million entirely toward the provision for tax refunds, which is mandated to be set aside from the general fund on a monthly basis.  This allows the government of Guam to use the cash to pay tax refunds faster and to catch up on what is overdue.  It also locks up any additional BPT so that it does not go to any other purpose and would not increase agencies’ spending.  This year, despite the administration hiding their plans for ARP, and without harm to critical services, the Legislature can increase the cash that is set aside for refunds.

Speaker Terlaje stated, “Many in our community are looking to the Legislature for assistance because they are worried about their ability to provide fortheir families, pay for their homes and other basic necessities in the immediate future.  With PUA ending, we need to do everything we can to push more money out into the economy as quickly as we can especially for our most vulnerable populations.  If we can pay the $117 million in CTC, EITC and other tax refunds and circulate that in addition to other ARP direct assistance programs, it will help our working families while supporting the recovery of local businesses.”

The Legislature has the authority to affect this change in advance and thereby overcoming previous challenges with the appropriation and control of excess revenues, as in the case of the appropriated but unallocated $10 million GMH capital improvement from excess revenues from 2019.  The Legislature’s conservative approach to fiscal policy due to uncertain economic outlooks in past years has resulted in $105 million in surpluses used fordeficit reduction at the Governor’s sole discretion without any legislative oversight.

“We need to stop putting the burden on the backs of our people. That is what we do when we fund government first and people last. These are refunds or credits that they are entitled to, not a handout to them.”

The amendment failed to pass having only received the support of 3 other senators, Senator Sabina Perez, Senator Clynt Ridgell and Senator Jose Pedo Terlaje.

FOR IMMEDIATE RELEASE (August 19, 2021 – Hagåtña, Guam) Speaker Therese Terlaje issues the following statement on the passing of local music icon, Jimmy Dee:

“On behalf of the 36^th Guam Legislature, it is with great sadness that we received the news of the passing of Mr. James “Jimmy Dee” Flores.  Our prayers go out to his wife, Jackie; his son Jim, and daughter-in-law, Valerie; his daughter, Joleen; and his grandchildren, RJ and Isabella.

I truly believe that language and music are the best ways to preserve memories, tradition, and culture for future generations.  I know that Jimmy has been cataloging some of his life’s work in recent years which is a display of CHamoru pride and his desire to share his love of Guam with the rest of the world.

I am grateful for the legacy of art that he has left behind for our children and grandchildren to share.”

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FOR IMMEDIATE RELEASE (August 19, 2021 – Hagåtña, Guam) Speaker Therese M. Terlaje on Wednesday, August 18 presented Certificates 34-36 (LS) and 35-36 (LS) to two outstanding veterans for their dedication and advocacy on behalf of Guam Veterans.

Certificate 34-36 (LS) was presented to retired U.S. Air Force Chief Master Sergeant William “Bill” Cundiff recognizing and commending him on his appointment by the Secretary of Veterans Affairs and for his service to the Advisory Committee on Minority Veterans from 2019 to 2021 and extending thanks on behalf of the people of Guam for his advocacy on behalf of veterans from Guam, the CNMI, the FSM, and other underrepresented places.

“I was so proud when I first heard of Mr. Cundiff’s committee appointment,” said Speaker Terlaje. “Earlier we had a hearing to support a congressional bill that will create another Advisory Committee for places like Guam who need better medical care and help from the VA Department. Before Mr. Cundiff, no one from Guam had ever served on an Advisory Committee to the U.S. Secretary of Veterans Affairs, which means he is paving the way for this type of representation. I want to thank him on behalf of the people of Guam for representing us.”

The Speaker also presented Certificate 35-36 (LS) to retired U.S. Marine Colonel Joaquin “Danny” Santos, Jr. recognizing and commending him on his research and dedication to the inclusion of Pacific Islanders and Service Cross recipients from Guam in the congressional review for potential upgrade to the Medal of Honor and extending thanks on behalf of the people of Guam for his service and contribution for our community.

In compliance with the National Defense Authorization Act of 2017, the Department of Army began reviewing the case files of Asian American, Native American, and Pacific Islander veterans to determine if they were bypassed the Medal of Honor because of racial, ethnic, religious, or political biases. At that time, Colonel Santos, Jr. was able to identify six Guam veterans who had received the distinguished Service Cross Award, and who were therefore eligible for review by DoD and Congress for the Medal of Honor: retired Command Sergeant Major Martin A. Manglona who attended the presentation, retired Sergeant Major Juan O. Blaz, Sergeant First Class Vicente T. Dydasco, Staff Sergeant Enrique Cruz, Staff Sergeant Tomas G. Reyes, and Specialist Fourth Class Joseph M. Perez. CSM Mangloña and SGM Blaz are the only recipients alive today.

“The men that I did the research for certainly deserve to be reviewed by the Department of the Army. My research on these men had everything to do with the lack of dignity given to them and their service in Vietnam. We should know that racism exists in the military, but there are initiatives now to correct it. These six men deserve this award more than me,” stated Colonel Santos, Jr.

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FOR IMMEDIATE RELEASE (August 17, 2021 – Hagåtña, Guam) Speaker Therese Terlaje has issued the following statement regarding Substitute Bill 36-36 (COR) AN ACT TO AUTHORIZE A COMMERCIAL SUBMERGED LAND LICENSE BETWEEN THE GOVERNMENT OF GUAM AND TELEGUAM HOLDINGS LLC, DOING BUSINESS AS GTA, FOR THE PURPOSE OF LANDING SUBMARINE CABLE AT ALUPANG, TAMUNING, GUAM, which is now Public Law 36–46:

“Bill 36–36 (COR) was substituted by the Committee on Land on July 22, 2021 after many hours of painstaking research to ensure that Guam is represented fairly for territorial submerged leases and rights of way moving forward, consistent with industry practices globally.

It is my hope that Public Law 36-46 will be a milestone for the advancement of telecommunications on Guam.  I fully support the effort to afford opportunities to expand global connectivity through our island with the advancement of the lease of submerged lands and rights of way that is safe for our environment and most importantly, fair for beneficiaries of the CHamoru Land Trust and for all the people of Guam.  With the proceeds of the license agreement authorized in this bill going toward the development of infrastructure on CLT property, I will continue to work diligently to protect our fragile coral reefs, our ocean biodiversity, and its surrounding ecosystem. I will continue the work to establish and protect viable sources of revenue and funding by converting this potential into sustainable agriculture and affordable housing.  

Thank you to Senator Joe San Agustin for the introduction of this important measure and to my colleagues for their support.  Thank you to GTA for taking the leap forward in setting the bar higher for this industry to partner with our community moving forward.  Thank you, Governor, for your support. I look forward in the near future to seeing this tremendous effort and cooperation result in the tangible progress and restoration of hope for the CHamoru Land Trust and all the people of Guam.”

FOR IMMEDIATE RELEASE (August 13, 2021 – Hagåtña, Guam)  Speaker Therese Terlaje sent the Appropriations Chairman several floor amendments today that would set aside the anticipated federal cash reimbursement of the Earned Income Tax Credit (EITC) and Child Tax Credit payments in the FY 2022 to lock them away and ensure they are not appropriated for other purposes.

The proposed amendments would ensure that GovGuam has a sufficient amount of cash to quickly pay all tax refunds eligible for the EITC refund and all Child Tax Credit payments. The amendments are similar to her Bill No. 175-36 that was introduced prior to the release of the Substitute Bill No. 55-36, the FY 2022 appropriations bill.

“With the influx of federal dollars to Guam, we must make it very clear that our priority is to get this money out to the people, especially when it comes to their tax refunds, Earned Income Tax Credits and Child Tax Credits.  In previous years, GovGuam has held on to tax refunds in order to pay itself first. We have seen great improvements and want to continue to aim for the payment of refunds within 30 days. Prompt payment of EITC and CTC will help to offset the loss of the PUA for families in need,” stated Speaker Terlaje.

Part of the American Rescue Plan Act of 2021 included language that would provide a 100% cost reimbursement from the federal government for EITC obligations to the government of Guam beginning in 2021 and for all following tax years. Prior to passage of the American Rescue Plan Act of 2021, the EITC obligations for Guam would range between $55 and $60 million dollars annually and would be paid using local tax revenues.  

The American Rescue Plan Act of 2021 also included language that would provide federal funds to Guam to pay Child Tax Credit obligations which in previous years would amount to $30 M paid using local tax revenues.  The ARP Act of 2021 also increased the amount of Child Tax Credits per family from a maximum amount of $2000 to now $3600.

The floor amendments have been attached.