EXECUTIVE Order No. 2011-10 signed by Gov. Calvo created the Fiscal Responsibility and Tax Refund Commission (FRTRC) with the governor as its chairman. This commission was established as a result of the growing deficit, which included tax refunds owed to the people that was estimated to be $269 million at the time.

The bipartisan commission, with its intentions to secure first the financial viability and then sustainability of Guam, was introduced with great publicity and promise of transparency. But then nothing; no information, no reports, no progress on its mandated tasks beyond the press release. Transparency gave way to darkness and an information void. The ability to issue a Series B bond requires that the FRTRC follow the reporting requirements in Section 5 of Public Law 31-76, which included a “Deficit Reduction and Fiscal Reform Plan” to be created by the FRTRC.

The inaction of the FRTRC has sent mixed signals on its commitment to the priority of sustaining Guam’s financial future. The main objective of this commission was to provide objective information to guide policymakers in making the best decision with all the relevant facts and considerations present. Without this information, it can be surmised that the FRTRC is ignoring or evading its duty to be open and transparent with the people of Guam. The authorized increase to long-term debt combined with the current expenditure rate of the government of Guam makes it a foregone conclusion that a tax increase is inevitable. The FRTRC’s lack of attention to its duty places taxpayers at future risk for a tax increase and/or reduced services.

Should the governor choose to max out the government’s ability to borrow bond money at 100 percent value of all taxable property, then I continue to maintain the position that the bond proceeds must be used toward repairing, renovating, rehabilitating, and maintaining our current public school infrastructure. Income tax refunds have been budgeted and actual revenue collections are there to support their payments. If the Executive branch lives within its means and after 16 months in office, stops blaming past administrations for their struggles, just does good and responsible work for the people of Guam; the morale of our community can remain positive and upbeat.

This is the fourth government of Guam bond issue since 2007 that uses bond proceeds to pay for income tax refunds.  Guam taxpayers will bear the burden of repaying more than $1 billion of principal and interest for the four bond issues used to pay income tax refunds over the next 30 years.

Assuming that a 1st-grader today becomes a taxpayer at age 18, he or she will pay $10,392 in taxes to pay for the four bonds, and today’s high school freshman will pay $15,017.

Furthermore, any additional borrowing, whether it is under the debt ceiling or by subverting the debt ceiling, will add undue additional bond/debt payments, on top of the Series B bond, that the government of Guam most likely cannot afford, without significant layoffs and/or tax increases.

But before we take any path that allows for additional borrowing, the issuance of more and more tax credits, or other creative financing strategies to subvert the debt ceiling, the governor’s FRTRC must meet and provide the reports it is mandated to provide, if not for the sake of following the law, then for the sake of our future generations.