Guam airport urges payment of $9.25M aviation fuel tax as legislators debate funding and accounting

The Guam International Airport Authority told the Senate Committee on Transportation, Tourism, Customs, Utilities, Federal and Foreign Affairs on Tuesday that the government of Guam owes the authority $9,254,625 in prior-year aviation fuel tax covering Jan. 2018 through Sept. 2023.

"In the area of non-aeronautical revenues ... our prior year aviation fuel tax in the amount of $9,254,625, which is due from the government of Guam," Deputy Executive Manager Daphne Shimizu told the committee.

GIAA officials said the amount arises from the increase in aviation fuel tax established by Public Law 34-44 (which raised the fuel tax from 4¢ to 8¢) and that Public Law 38-21 later authorized changes to concession and lease processes that affect airport revenue. The authority said the governor directed DOA and BBMR to remit amounts prospectively beginning Oct. 1, 2023, but that the arrears for the earlier period remain unpaid.

GIAA Chairman Brian Bamba and executive manager John Kanata told senators the airport has raised the matter repeatedly with the governor's office and BBMR. Kanata said discussions are ongoing and that the airport has asked the legislature for an appropriation to clear the prior-year balance.

Senators pressed the administration's finance offices about whether unobligated FY2025 excess revenue exists to fund such an appropriation. Committee members said they had received letters from BBMR stating there is no unobligated FY2025 excess revenue; the OMB chair countered that a negative fund balance in the published accounting requires reconciliation and promised a statement and further documentation before any appropriation moves forward.

"It's a pretty good bet that no bill is gonna move forward that recognizes FY2025 till I get assurances that that has been rectified," the OFB/OMB chair said during the hearing.

Committee members urged GIAA and the administration to use the transfer authority available in the FY2026 budget if the governor's office can make funds available earlier, while others said the proper remedy might be a remittance rather than an appropriation. The hearing record reflects disagreement about whether the $9.25 million requires legislative appropriation or can be addressed administratively; senators repeatedly emphasized that accounting must be reconciled before they will advance bills.

The committee did not take a vote on the appropriation during the session and continued oversight for follow-up with GIAA, the Guam Visitors Bureau and GEDA at a future session.

Ending: The committee recessed and continued the joint oversight hearing to Tuesday, Feb. 24 at 2 p.m. for follow-up on funding reconciliation and next steps.