AN ADDITIONAL $5 million in tax refunds will be paid next week, the Governor’s Office announced yesterday.

This cash windfall is coming from an unexpected increase in Section 30 reimbursements, which Gov. Eddie Calvo has been working on with the U.S. Department of Treasury.

The funding follows a request made last week by Calvo to the Department of the Interior to release the Section 30 funds.

DOI Assistant Secretary for Insular Areas Tony Babauta then informed Calvo that his request had been approved.

About $6.7 million is also owed to Guam from underestimates for Section 30 reimbursements from Fiscal Year 2011.

Unfortunately, the Treasury applied the funding against the government of Guam for a $9.6 million debt to the federal agency for overpayment of Section 30 reimbursements in previous years.

The governor has already asked DOI not to offset the huge debt and cited a memorandum of understanding between the local and federal government that already outlines the repayment structure of the debt.

“We’re going to keep holding the line on spending so those savings can go toward tax refunds,” Calvo said. “Our goal is to pay the refunds this year so that for the first time in a long time, people can get their tax refunds within only months of filing.”

The governor over the weekend signed off on the budget bill but not without letting senators know that budgets from 2009 to 2011 had “placed the GovGuam coffers in ruin.”

“Those budgets account for most of the deficit of tax refunds, a deficit you refused to pay down in full when I offered the bond solution last year. It was not until this administration, with the support of the legislative minority and only a couple of majority members, demanded full fiscal responsibility that the deficit was reduced, tax refunds were paid, and courageous action was taken. In short, I admonish those responsible for the financial mess we are in to finally listen to those whose fiscal policies are actually working. Make the amendments. Pass my spending cuts bill,” Calvo stressed.

Sen. Ben Pangelinan, who heads the appropriation committee, has vowed to reduce government expenses in order to address the timely payment of income tax refunds.

“I realize it is not as easy as just borrowing money, and we no longer have the luxury or the capacity to borrow our way out of our financial troubles. We now have to work our way out,” Pangelinan said.