Our Budget Process Plan

Establish a Base Budget

The Base Budget of the Government of Guam General Fund shall not exceed the rolling 5-year average of actual revenues collected, less 5% for variance.

All Special Funds shall be eliminated and consolidated as a General Fund Appropriation to the respective agency.

Increments shall be paid to employees as an annual bonus and not as a permanent salary adjustment. Tri-annual salary reviews shall be conducted to determine the fair value of performance-based salary adjustments—and shall be implemented subject to capacity based on the rolling 5-year average of actual government revenues collected.

Establish a Surplus Supplemental Budget

When Government Revenues are tracking to exceed the rolling 5-year average during any calendar quarter of the Fiscal Year, surplus funds shall accumulate into the Surplus Supplemental Budget for Appropriation at the end of the Fiscal Year, or to make up for any revenue shortfalls during the current Fiscal Year.

Surplus Supplemental Appropriations are limited as follows in non-priority order, subject to the discretion of the Governor:

1. Emergency purchases of supplies, equipment, blood, medicine and other non-durable medical items necessary for treatment by the Department of Health
2. Advance Payments of outstanding debt obligations callable
3. Payments to the unfunded liability of the Government of Guam
   Retirement Fund
4. Payments of increment bonuses
5. Payments to transact economic development opportunities certified by the Governor and the Legislature
6. Additional Capital Improvement Projects with a projected useful life of 10 years for Health, Education, and Public Safety
7. Additional Durable Goods Purchases with a projected useful life of 5 years for Health, Education, and Public Health

Establish a Shortfall Supplemental Budget

When Government Revenues are tracking less than the rolling 5-year average during any calendar quarter of the Fiscal Year, greater than the 5% variance Base Budget allotment, the budget shall be amended for the remainder of the fiscal year until quarterly tracking indicates normalization, in a priority order
as follows:

1. All Travel that is locally funded, partial or in full, will be suspended.
2. Procurement of Durable Goods for the replacement of existing assets still functioning will be suspended—with the exception of Health.
3. All Increments will be frozen.
4. All Hiring will be frozen—with the exception of Health.
5. All Unclassified Personnel will take a 5/10/15/20% pay cut determined by the magnitude of the shortfall. This cut shall be maximized prior to any pay cuts to Classified Personnel.
6. All Classified Personnel will take a 5/10/15/20% pay cut determined by the magnitude of the shortfall.