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Back Opinion The bell tolls

The bell tolls

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GOV. Eddie Calvo issued a directive late Tuesday night, instructing all of his Executive branch agencies to come up with $43 million in annualized spending cuts by July 1. Such a reduction, he said, “will surely result in the layoff of government employees.”

It’s the sort of announcement that sends shock waves through this community, something the governor certainly understood. But, he said, “we have not cut spending enough in this government to live within our means.” That was stating the obvious. The total deficit of this government exceeds $330 million and is growing. And although the administration has flipped some numbers around to, inexplicably, convert short-term debt – tax refunds – into longer term debt – bonds – and then argue that this has somehow reduced the deficit, everybody knows that’s not really true.

We have often pointed out that the government of Guam must make some painful decisions, and make them soon. We’re glad the governor is apparently going to move forward with layoffs, despite the pain. The only way to avoid such drastic reductions in spending is to raise taxes, something none of our elected officials will even talk about, much less do.

So here we go. The governor announced the cuts as part of a three-page memo appointing most of his top people to a Spending Cuts Task Force, which will have its first meeting this afternoon. Just when specific details about the layoffs will be released is tentative, but there is no doubt about the initial deadline of the first of July. That’s less than three months away.

GovGuam doesn’t have much wiggle room. Some senators – who face re-election in November – quickly came out with statements asserting that there are other ways to cut more than 10 percent from the GovGuam budget, and nobody will argue that every possible alternative should be explored before a single employee is laid off. But the inexorable movement toward personnel reductions is like a bell tolling the hours, days and weeks before pink slips will have to go out.

“The practice of over-projecting revenues, understating expenditures and refusing to cut spending” must come to an end, the governor argued. He compared GovGuam to a sick patient who, 20 years ago, could have been helped with some chicken soup and bed rest. But, alas, “he has come to a point where his condition is life-threatening, and rest and kadon mannok will no longer help his recovery. Bitter medicine is needed to save his life. This bitter medicine has to be deep cuts into operations.”

“It will be painful,” he added, and “it will be unpopular. We will receive pushback,” but he said we no longer have any other choices. GovGuam, the maga'låhi asserted, is dying.

Comments  

 
+2 #2 Da 2012-04-19 20:52
In addition to nita,

A major contribution to Gov Guam's deficit was the republican Forbes early out program in the past, which has put GG close to bankruptcy at that time.

Unfortunately Gov Calvo didn't learn a thing and he wants to do an early out again, to reduce GG's deficit, what a joke.

Its not stupidity, they just don't care, as long as it looks good to the public, they wont tell you how much that "early out" will cost.

All this is just disgusting, and I strongly believe since the Calvo administration does not follow the open Gov. laws, breaking major campaign promises, we must implement election reform, so that such a disaster doesn't happen again.
 
 
+6 #1 nita 2012-04-19 07:39
Unless Calvo throws out those "political" hires he placed all over the government including the autonomous agencies, the employees will not take kindly to any cuts they are hammered with. Calvo knew from the outset of his administration that the government is way over staffed yet he chose instead to aggravate the situation by hiring non-productive employees. PAG has at least two employees with the work ethic of a sloth. One does nothing but play golf twice a week. He did as much while he screwed up the maintenance division at GDOE and the other is nothing but a "recruiter" of new people for politics sake. She is often seen at her friends cafe during working hours just "killing" time.
 

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