THE idea for this column has been on my mind for some time. I debated whether to write it because it will have likely been followed up by denials, deflections, and maybe even a hoax or two, but in the end it has always been and will always be my duty to deliver the truth to the people.

You, the taxpayers of Guam, recently borrowed another $109 million, the proceeds of which will go to pay off tax refunds, a debt to the retirement fund, and government of Guam employee and retiree health insurance.

Starting with the refunds, we know that $60 million will be mailed out this week. Great. No long lines, no overtime paid to employees, etc. Well, not so fast. The estimated amount of refunds due for tax year 2011 is $105 million. More good news, the governor has finally agreed with me to use the revenue collected this year to pay for tax year 2011 refunds, which he says is $33 million. Still, not everyone will be happy: $105 million - $60 million - $33 million = $12 million short.

However, based on the current fiscal year revenue collection, there should be approximately $43 million in the Income Tax Refund Efficient Payment Trust Fund, not the $33 million the administration keeps repeating. That is another $10 million that should be available for refunds.

Why is there not more money available for refunds? For the past two months, the governor has made sure that the cash that should first go into the Income Tax Refund Efficient Payment Trust Fund for refunds is instead paid to his health insurance premiums that should have been paid from money that GWA was required by law – and the PUC ruled upon – to pay to the General Fund.

Basically the government bridge-financed the health insurance with cash collected for your tax refunds and the governor still wants all $18 million of bond proceeds for his health insurance payments, when in fact, the real amount of bond proceeds needed to cover health insurance is probably $12 to $14 million, leaving another $4 to $6 million available to pay refunds. If the governor will follow the law, everyone can be paid their 2011 tax refunds now and we can start putting away refund money for 2012: $105 million - $60 million - $6 million - $43 million = an additional $4 million to pay more refunds in 2012.

I am thankful for his decision to finally release the $33 million that the law required to be set aside from current revenues, and I will continue to pressure the governor to follow the tax refund laws of Guam and set aside what the Guam Legislature has budgeted for refunds and make sure those funds make it into your pockets first, as I have always advocated.