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Back Outsider Perspective Fixing the money problem

Fixing the money problem

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TRUE to form, GovGuam continues to teeter on the brink of financial ruin. Each new news day brings a litany of funding complaints from agencies across the board. GMH plunges deeper into debt and continues to operate in a deficit cash flow condition, with only five days of cash reserve on hand against the standard of 100 days. GovGuam owes the former Layon landowners the major balance of a $25 million 'fair compensation' payment in the landfill condemnation issue, and overdue salary increments and overtime payments exist government wide. DOE is perpetually behind the financial power curve, constantly imploring the legislature and the governor for 'mo money.' The prison remains in trouble with the feds over decades-old shortcomings and the Election Commission can rarely come up with enough cash to pay for printing ballots. The GovGuam Retirement Fund is so far down the unfunded obligation well that they no longer discuss it.

That's just a sampling of the financial woes. What's the answer? Are we so stupid that we must put our confidence in folks like Senator Rodriguez, who proposes to raise money for the hospital by taxing proceeds from illegal gambling machines? Is there any way to fix stupid?

At the risk of being accused of rationality and perhaps even a small dose of economic common sense, I have a few suggestions:

We could begin by aggressively collecting delinquent property, income, GRT and other taxes and call in accounts receivable and other debt. That should easily generate at least $150 million;

Double property taxes to a level that would nevertheless approximate less than half the national average for an additional $50 million;

Levy an expiring 10 percent income tax surcharge for an additional $40 million;

Temporarily increase the GRT by two points, or scrap it in favor of a 6 percent sales tax. It's hard to estimate this one because Rev & Tax has no reliable record of collections since 2010 (hard to believe, but true) but it should bring an additional $100 million;

Lay off 2,000 or so unnecessary GovGuam political hires and eliminate the positions to save at least $100 million in payroll costs and benefits.

That totals approximately $500 million, or enough to fund everything related to GMH and DOE, pay overdue overtime and increments, and go far toward providing for critically needed infrastructure upgrades and repair.

Or alternatively, continue as usual.

Whine about how unfairly Guam is treated by the federal government, which contributed $2.2 billion (yes, with a "B") to the local economy last year while Guamanians contributed nothing to the federal treasury. Needless to say most of that was squandered, mishandled, given away or diverted to who-knows-what.

Whine for WWII war reparations for descendants of those who may have suffered at the hands of the Japanese three-quarters of a century ago, paid for by the descendants of WWII era American taxpayers who had nothing to do with it.

Whine about inadequate Compact Impact funding, though nobody has yet seriously considered or computed offsetting economic contributions by Compact migrants. Should all the FSM guests leave tomorrow Guam’s visitor industry would collapse overnight.

Whine about compensation for ‘radiation survivors’ and ‘downwinders.’ Remind me to put my name on that list.

Whine about the dangers of adding a few thousand military members and dependents to the population base: typically well-disciplined, highly motivated folks who are far better educated, healthier and more law-abiding than your typical Guamanian. Maybe you can get the feds to change their minds about the move and cancel it altogether.

Last, though by no means least, persist in electing the same career-politician drones, most of whom never had (or succeeded at) a real job outside of GovGuam. Think about it.

Comments  

 
-2 #2 FILIPINO POWER 2013-05-20 16:57
The biggest problem with Guam Memorial Hospital is the hospital’s top administrator, LEE WEBBER!

There have been recent scandals of mismanagement, waste and incompetency at GMH, as reported by the media.

All these cases deal with the top leadership of LEE WEBBER and have nothing to do with the good hardworking competent hospital employees who make GMH run – doctors, nurses, etc.

It is the top administrator, LEE WEBBER, who is running GMH into the ground!

People are dying as a result of LEE WEBBER’s incompetency!

LEE WEBBER is the deadwood at the top bringing GMH down!

OUST GMH ADMINISTRATOR LEE WEBBER TODAY!

LIVES ARE AT STAKE!

PEOPLE ARE DYING!
 
 
+5 #1 RAPCON 2013-05-20 12:27
Dave, your solutions sound viable and they make sense, problem is, that's not how this government works. They are more concern about their image and prefer to cater to special interest groups and that doing what's right for the people becomes secondary.

I have to hold my nose everytime this government tells us how great things are going. We've crossed the financial rubicon and it's doubtful things will get better. The actions and policies of this administration to include our government leaders will be measured in perpetuity.
 

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