Legislature debates education budget amid questions over DOE carryovers and new leasing authority

The Committee of the Whole of the Guam Legislature spent much of its Chapter 2 session on Saturday debating how the Department of Education will use carryover balances and whether new budget language should let the agency lease vacant classrooms without earlier procedural protections.

The discussion centered on who should answer technical questions about the budget and how much money GDOE can carry forward. Senator Burnett moved to call Department of Education officials into the hearing; the chair ruled the motion out of order and an objection was raised, so the motion failed.

“The motion already failed, senator,” the chair said after calling the roll on the question of inviting agency staff. Senator Burnett had asked for direct answers about the budget and argued agency presence was common in prior years: “I would again just reiterate my motion to bring the Guam Department of Education officials in here.”

OFB Director Steve told senators the May CER audit and tracking reports show GDOE is projected to lapse about $5.7 million this fiscal year, and that audit figures include roughly $77 million in balances — about $26 million from the general fund and $51 million from federal reimbursements. “As of our May EFSC report, we are tracking 5,700,000,” he said. OFB said that when lapses and reimbursable federal balances are combined, GDOE would have close to roughly $36 million available for FY‑27, subject to carryover rules and allotment control.

Several lawmakers raised a separate but related concern about a provision in the substitute budget (identified in committee as section 19) that would authorize GDOE to lease vacant classrooms, decommissioned schools and other properties using prevailing square‑footage rates rather than costly appraisals. Senator Perez said the provision “circumvents the public law that we passed” and warned that the substitute lacks the safeguards (a minimum floor based on appraisals, procurement oversight and board review) that an earlier statute included.

OFB and proponents of the change said the practical aim is to allow GDOE to monetize unused space without commissioning expensive appraisals. Senator Borja explained the amendment was requested by GDOE leadership to establish prevailing square‑foot rental rates using existing island property assessments while accounting for condition, location and operating costs. He argued the approach would keep government rent dollars “within the government of Guam family” and funnel payments back to GDOE for school maintenance.

Other senators asked whether leasing could create liabilities — for example, when grant‑funded projects require return of funds if a facility is decommissioned — and urged stronger guardrails. Several members also pressed OFB for a quantitative estimate of how expected energy cost increases (LIAC) and health insurance negotiation outcomes would change GDOE’s operating needs; OFB offered to produce those calculations later in the session.

The Committee adopted several technical and programmatic amendments to Chapter 2 before closing the chapter and moving to Chapter 3 (health). The next procedural step is the amendment portion for miscellaneous provisions, where senators said policy changes can still be proposed or revenue moved among agencies.