Simon Sanchez High School Set for $16.3M Boost in Budget Bill
UPDATE: In a critical development, Simon Sanchez High School is poised to receive a significant $16.3 million funding increase to aid in relocating students to a new campus in Yigo, pending the approval of the fiscal year 2026 budget bill. This vital financial boost was confirmed just hours ago as lawmakers engaged in heated discussions on the fourth day of budget deliberations.
The new funding is set to come from a balance of approximately $30.9 million in excess tax and fee revenues that GovGuam has accumulated beyond projections for fiscal year 2025. Bureau of Budget and Management Research Director Lester Carlson emphasized the necessity of this additional funding, stating that without it, the construction of the new campus would be akin to “buying a Corolla instead of a Lexus.”
Lawmakers are also preparing to enter the bond market to secure funds for the new campus, with plans to commence this by October. Budget Chairman Sen. Chris Duenas expressed his support for utilizing the excess revenue despite previous reservations, emphasizing, “This is the right thing to do.”
Meanwhile, attempts to adjust the business privilege tax (BPT) rates for smaller businesses hit a wall. The amended budget will lower BPT rates from 5% to 4.5% by October 1, 2025, further reducing to 4% by October 1, 2026. Despite efforts from Sen. Therese Terlaje to implement a reduced rate of 3% for businesses earning between $500,000 and $2 million, her amendment was rejected, making the tax relief for small and mid-size businesses unattainable.
Senator Terlaje projected that her proposal could provide around $20,000 in tax relief for qualifying businesses, which would equate to a revenue decrease of about $17 million for the government. However, the lack of support for this amendment raises questions about the financial burden on smaller enterprises in the region.
Similarly, Sen. Will Parkinson’s proposal to adjust the BPT rates for larger businesses also failed. His initiative aimed to lower rates for smaller firms while increasing them for businesses exceeding $50 million in revenue.
In a related effort, Sen. Telo Taitague sought to maintain BPT rates at 5% for military contracts over $10 million to ensure that large military contractors contribute fairly to the costs of public infrastructure and services. This amendment also did not pass, highlighting ongoing struggles to balance tax responsibilities among Guam’s various business sectors.
As of 5:30 p.m. on Thursday, lawmakers were still deliberating amendments to the budget act, with expectations to continue discussions until 10 p.m.. The outcome of these discussions will significantly impact local businesses and the educational landscape in Guam.
Stay tuned for further updates as this situation develops. The implications of these budget decisions will resonate throughout the community, particularly for students and small business owners who rely on government support.
