UPDATE: Simon Sanchez High School is poised to receive a significant $16.3 million funding boost to support the relocation of students to a new campus in Yigo, pending final approval of the fiscal year 2026 budget bill. This urgent development was confirmed as lawmakers continue to amend the budget on the fourth day of deliberations.
The funding will be sourced from approximately $30.9 million in excess tax and fee revenue collected by the Government of Guam, exceeding initial projections for 2025. Bureau of Budget and Management Research Director Lester Carlson emphasized that without this additional financial support, the construction of the new campus would be insufficient, comparing it to “buying a Corolla instead of a Lexus.”
Amid rising costs, Carlson revealed that the government is preparing to enter the bond market to secure funds for the construction, potentially by October 2025. Budget chairman Sen. Chris Duenas, despite previous commitments to avoid tapping into excess revenues, stated, “This is the right thing to do,” signaling his support for the amendment.
As of 5:30 PM on Thursday, lawmakers were still engaged in discussions regarding amendments to the budget act, with expectations to extend discussions until 10 PM that evening.
In contrast, efforts to provide additional business privilege tax (BPT) discounts to smaller businesses faltered. The amended budget will lower BPT rates from 5% to 4.5% by October 1, 2025, and further down to 4% by October 1, 2026. An amendment proposed by Sen. Therese Terlaje aimed at reducing BPT rates to 3% for businesses earning between $500,000 and $2 million was rejected, which would have provided about $20,000 in tax relief for these businesses.
Additionally, Sen. Terlaje secured an amendment ensuring that Guam Memorial Hospital receives 6.1% of actual BPT collections in its Pharmaceutical Fund for fiscal 2026, addressing concerns over projected versus actual revenue.
Proposals to increase BPT rates for larger military contracts and to offer further tax breaks for small businesses also met with failure. Sen. Telo Taitague argued for maintaining the 5% rate for military contracts over $10 million, stating that large military contractors should contribute fairly to public services. This amendment did not pass.
With the budget discussions ongoing, updates are expected to continue rolling in as lawmakers work towards finalizing the budget bill. The implications for education funding and local businesses are significant, making this a crucial moment for stakeholders across Guam.
Stay tuned for the latest developments as this story unfolds.