AS POLICY makers struggle with the need to cut approximately $70 million out of the current government of Guam budget, a classic tug of war has developed between Gov. Eddie Calvo, the executive branch and the Guam Legislature.

At issue is the proposal to save 20 percent of salaries across the board by instituting “furlough Fridays,” a day off for which GovGuam workers would not get paid. The idea was put forward by the GovGuam Retirement Fund, which was asked by lawmakers to come up with alternatives to the early retirement and extended amortization proposals of the executive branch.

The Retirement Fund’s directors have a fiduciary responsibility to the fund and its members, both active-duty and retired. It can be argued that they do not have such a fiduciary responsibility to the GovGuam budget or to the taxpayers of Guam, who are represented by the elected leadership. But the financial health of the government obviously affects everybody, including the Retirement Fund.

The idea of cutting all employees' pay by 20 percent caused the governor to issue a scathing statement against the idea which, he says, “would hurt every single employee, but will not have the effect of reducing the GovGuam workforce.” The proposal doesn’t actually cut all employees by that amount. It would furlough employees for one Friday each pay period, which on an annual basis would work out to more like a 10 percent cut in pay. The governor says he will veto any such legislation that comes to his desk.

Furloughing government employees in the face of declining or inadequate revenue is not a new idea. Hawaii imposed furlough Fridays on teachers and education employees last year, with mixed results. Also last year the District of Columbia approved furloughing employees for four legal holidays, making those days pay-less instead of time and a half for those required to work.

Other jurisdictions have also considered or implemented such measures to save cash. Gov. Calvo says these ideas are unfair to all taxpayers, since they have the effect of reducing government services on the furlough days. “My proposal,” he insists, “allows employees to voluntarily separate from government service. My proposal cuts the GovGuam workforce without hurting people. It will actually help those looking to retire.”

The furlough idea is one of three proposed by the Retirement Fund in response to a request from the Legislature. Vice Speaker B.J. Cruz says he will schedule a public hearing on the proposals before the end of the week. “I want everyone involved to understand what we are being asked to do and how it will affect them, their families and our taxpayers. We are all in this together,” he emphasized.

Sen. Cruz was thanked by Gov. Calvo for working with “our team.” No such thanks for the Speaker, though. In Calvo’s prepared speech, he urged people to call the office of Speaker Judi Won Pat at 472-3586 or email her to let her know there are other ways of cutting spending.

Keep an eye on this tussle. With the election just three weeks away, all of this has potential impact on the outcome.