11 Jan 2011

New Guam Governor restricts spending

7:50 pm on 11 January 2011

The Governor of Guam is calling for a halt on unnecessary spending and personnel changes in an effort to stave off payless paydays.

Governor Eddie Calvo has signed an executive order informing all government agency heads to tighten their belts and to find ways to increase government revenues and identify existing liabilities.

According to the executive order, the government of Guam is looking at a projected cash shortfall of about $US 90 million for the current fiscal year -- on top of an $88.8 million budget shortfall last fiscal year.

The governor's deputy press secretary, Phillip Leon Guerrero, says the Governor is pushing to reduce government debt as soon as possible.

"Governor Calvo really wants to focus on making sure we really do try to get some sort of immediate hold of our finances. And that starts with two things - it with managing our cashflow and it also starts with reducing costs and increasing efficiency."

Exceptions to the order include hiring for positions directly affecting the health, education and safety of people.