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San Nicolas introduces measures to address GovGuam cash flow
GUAM—To improve the cash flow of the Government of Guam, Sen. San Nicolas introduced Bill 72-34 and Resolution 76-34, which would help to smooth out the revenues and expenditures of the Government of Guam. Recently transmitted legislation from Guam Gov. Eddie Baza Calvo called for more borrowing in order to smooth out cash flow for the Government of Guam which the Governor said was the cause of the slowdown in tax refund payments this year.
Bill 72-34 would authorize executive branch agencies to seek monthly amortization of payments of municipal leases. Certain municipal leases, like Tiyan High School, are paid in a lump sum at the beginning of the fiscal year. The monthly amortization of these payments would help to improve the cash flow of the Government of Guam by breaking the payments into smaller monthly amounts which are more manageable.
Resolution 76-34 seeks to encourage Congresswoman Madeleine Z. Bordalloto negotiate a quarterly disbursement of Section 30 funds with federal authorities, beginning in the 3rd quarter of Fiscal Year 2017, as opposed to a lump sum in September. This would make the money available year round, as opposed to once a year.
“Part of improving cash flow is making efforts to smooth out the money we have going in and the money we have going out,” said Senator San Nicolas. “These measures represent tangible improvements to our cash flow and I look forward to bipartisan support.” (PR)
