Guam senator proposes pay raises in new budget

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Guam senator proposes pay raises in new budget

by: The Associated Press | .
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published: August 22, 2013

HAGATNA, Guam (AP) - A Guam senator is proposing that the territory change its budget to add millions of dollars in pay raises for government employees.

Pacific Daily News reported Monday (http://goo.gl/0a9UDb ) that Sen. Ben Pangelinan is proposing to use a combination of funds budgeted for tax refunds and reimbursements for military members who don't pay local income taxes.

A management and consulting firm said in 2010 that Guam needs $13.1 million to pay for increases for about 6,000 government agency employees. Government-wide, the amount increases to about $18.6 million.

Gov. Eddie Calvo told lawmakers last week to include funding for pay increases.

Pangelinan, a Democrat who represents Barrigada, is chairman of the territorial Legislature's finance committee. It's unclear how much his proposal will cost.

Calvo rescinded a plan for the increases in 2011, saying the government couldn't affor d it.

Pangelinan is expected to discuss his proposal with other lawmakers on Tuesday local time.

Pangelinan says the government should have about $9 million available within the budget from funds set aside for tax refunds. The administration says it needs $113 million to cover refunds, but the Legislature's current version of the bill has $129 million set aside. Pangelinan's plan to reduce the amount still includes cushion.

Pangelinan said it may be possible to give a cost of living allowance increase to Guam government retirees. But he did not specify how much that might cost.

Information from: Pacific Daily News: http://www.guampdn.com

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