Speaker attempts to increase SHPO allocation, colleagues only allow status quo

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.

Speaker continues fight to prioritize tax refunds

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.

Speaker Continues to Fight for Faster Refunds of Taxpayer Money

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.

Speaker Therese Terlaje Urged Lawmakers to Protect and Expedite Tax Refunds

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.

A Statement from Speaker Therese Terlaje on the Late Jimmy “Dee” Flores

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 36th 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.

Speaker Terlaje recognizes Cundiff and Santos, Jr. for their contributions to Guam Veteran advocacy

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.

A Statement from Speaker Therese Terlaje on Public Law 36-46

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 3646:

Bill 3636 (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.”

Speaker to proffer amendments to FY 2022 budget bill to ensure Earned Income Tax Credit and Child Tax Credit reimbursements are locked away and immediately paid

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.

Speaker Says “Pay the RISE Today”

FOR IMMEDIATE RELEASE (August 10, 2021 – Hagåtña, Guam) Speaker Therese Terlaje has issued the following statement regarding RISE payments:

“The Governor has clearly had the authority to remove impediments to making RISE payments and had the ARP funds in the bank since May but failed to deliver the money to those in need.

Today, the Governor said they are still working on an application after seven months and won’t release the funds until September. It is a mockery of the real suffering and needs in our community and flagrant disregard for the truth that she held the funds this long without a legitimate reason yet started spending it for other purposes.

It is ironic that the Governor is alleging the motivation in passing legislation was about recognition and headlines then immediately took credit for pumping $1.2 Billion into the economy when that came from the federal government.

We sent two bills with two options to remove any perceived impediments on the RISE payments. All the Governor has to do is pick one and stop the games.”

Bill Introduced to Ensure Swift Payment of Tax Refunds with Earned Income Tax Credits

FOR IMMEDIATE RELEASE (August 9, 2021 – Hagåtña, Guam)  Speaker Therese Terlaje introduced a bill that would set aside the anticipated federal cash reimbursement of the Earned Income Tax Credit (EITC) for the sole purpose of swift payments of tax refunds beginning with tax year 2021.

Bill No. 175-36 (LS) would ensure that GovGuam has a sufficient amount of cash to quickly pay all tax refunds eligible for the EITC refund by requiring immediate deposits of the EITC cash reimbursements from the federal government into the Income Tax Refund Efficient Payment Trust Fund. Before the EITC cash reimbursement is used for any other purpose, Bill No. 175-36 will allow GovGuam to catch up on tax refund payments and ensure enough cash is available in the Trust Fund to make swift tax refund payments for the entire tax year.

“We should lock away the federal reimbursement for these EITC tax refunds so that the next years’ refunds can be paid within 30 days of processing. We have been told time and time again by multiple administrations that the timing of the payments for tax refunds is dependent on the amount of cash available to make the refund payments, but we know that the working families that qualify for the EITC are often the ones who are in dire need of their tax refunds and it should be our duty to ensure the government pay these refunds immediately, rather than borrow them for other government services.  This will also relieve the pressure on the General Fund ensuring that the payment of all types of refunds can be made sooner rather than waiting for up to 6 months,” 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.

In 2001, prior to being a senator, Speaker Terlaje successfully represented the 25th Guam Legislature as legal counsel in the original Earned Income Tax Credit case brought before the Supreme Court of Guam to compel the government of Guam to implement the EITC program for working families. The EITC aims to reduce poverty by supplementing the earnings of low-wage workers and by rewarding work.