Guam State Clearinghouse - “Latest News”

Governor Felix P. Camacho met with U.S. Department of the Interior (DOI) Secretary Ken Salazar in Washington, D.C., to conclude a week of meetings centered on military expansion in the Western Pacific and efforts to expand renewable energy on Guahan. Secretary Salazar committed his agency’s senior leadership to ensure the Guam Military Buildup Program moves ahead with the full interests of the people of Guahan at the forefront.

“I am pleased that Secretary Salazar has committed to engaging his senior staff in this critical issue,” said Governor Camacho. “My Administration will continue to stand firm in requiring that the mitigation of all impacts related to the Buildup be addressed.”

Secretary Salazar shared his agency’s disappointment with Governor Camacho on the recent lack of a TIGER Grant Award from the U.S. Department of Transportation. Secretary Salazar pressed Deputy Secretary David J. Hayes; Chief of Staff and Assistant Secretary for Fish, Wildlife, and Parks Tom Strickland; and Assistant Secretary for Insular Affairs Tony Babauta, to work closely with the Economic Adjustment Committee to address the local government’s needs related to the Guam Buildup.

“What I received is a commitment of high level coordination,” said Governor Camacho. “DOI has a sense of what the United States must do to implement this national priority and, in the coming months, will work closely with the government of Guahan to ensure this buildup benefits our people.”

This week, Governor Camacho will attend meetings with American Samoa Governor Togiola Tulafono and CNMI Governor Benigno Fitial at the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) to discuss ways to improve energy efficiency and increase renewable energy technologies in the islands. The three-day event, to be attended by senior Obama Administraiton officials and Colorado Governor Bill Ritter, will touch on a host of issues including the integrated deployment of renewable energy solutions to the islands, strategic energy planning, and sharing results of Pacific Island Resource Assessments completed by NREL and DOI.

Additionally, the governors will be briefed on a recent agreement between the U.S. Virgin Islands (USVI) and the U.S. Department of Energy regarding a pilot program that seeks to bring renewable energy to islands around the world.

“This agreement sets out to have 60 percent of the territory’s energy come from renewable resources by 2025,” said Governor Camacho. “We hope to have both the Consolidated Commission on Utilities and the University of Guam to engage in this effort to help our island find solutions to stabilize energy prices, protect our environment and create green jobs.”

Ref: Governor Release 3/1/10

The U.S. Environmental Protection Agency is granting $34.2 million in wastewater and drinking water infrastructure funding to Guam, the Commonwealth of Northern Mariana Islands, and American Samoa.

“This major increase in funding will allow Guam, American Samoa and CNMI to work on badly needed wastewater and drinking water infrastructure improvements,” said Jared Blumenfeld, regional administrator for EPA’s Pacific Southwest region. “This is the first time that the U.S. territories will receive funding comparable to states on the mainland for these vital public health efforts.”

As part of EPA’s budget for this year, the EPA Administrator for the first time has the discretion to set aside 1.5 percent of the total funding allotted to the national EPA State Revolving Fund for Clean Water and Drinking Water to be available to U.S. territories. This year Guam and American Samoa will each receive $13.1 million and CNMI will receive $11.27 million.

Below are the amounts the Pacific territories will be getting compared to what they received last year:

For wastewater infrastructure:
· Guam - $8 million; previous: $446,500
· CNMI - $5.17 million; previous: $286,800
· American Samoa - $11.1 million; previous: $617,000

For drinking water infrastructure:
· Guam - $5.1 million; previous: $887,000
· CNMI - $6.1 million; previous: $764,000
· American Samoa - $2 million; previous: $202,000

“This funding will go to drinking water and water quality protection projects such as wastewater treatment, protection of drinking water sources, and improvements to water storage and distribution facilities,” said John McCarroll, manager for the Pacific Islands Office for EPA’s Pacific Southwest region. “These improvements will have a real impact on public health and the quality of drinking water and surface water for island residents.”

Ref: PNC 2/24/10

Madam Chair and members of the House Subcommittee on Insular Affairs, Oceans and Wildlife, it is a privilege to appear before you today to present the President’s fiscal year 2011 budget request for the Office of Insular Affairs (OIA). OIA is responsible for overseeing, on behalf of the Secretary of the Interior, the Federal Government’s relationship with the United States territories of Guam, American Samoa, the United States Virgin Islands (USVI), and the Commonwealth of the Northern Mariana Islands (CNMI), as well as administering the financial assistance for the freely associated states of the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau under the Compacts of Free Association. Due to their isolation and lack of resources, these seven island areas face a variety of unique challenges.

The fiscal year 2011 OIA budget is focused on strategies that empower insular communities. OIA will continue to provide support to help improve quality of life, create economic opportunity, and develop more efficient and effective government through various Assistance to Territories programs. These programs address a variety of needs, including critical infrastructure related to wastewater systems, hospitals, and schools. In fiscal year 2010, OIA received over $102.5 million in Assistance to Territories funding, of which more than 90 percent has been awarded to the insular areas in the form of grants. OIA intends to continue this aggressive administration of both current discretionary funding, and permanent and indefinite mandatory funding for insular areas that may be appropriated for fiscal year 2011.

Overview of the FY 2011 Budget Request

In his State of the Union address last month, President Obama acknowledged that “families across the country are tightening their belts and making tough decisions. The Federal Government should do the same.” The Office of Insular Affairs has taken direction from the President by crafting a $457.7 million fiscal year 2011 budget request that demonstrates budgetary restraint yet ensures that the flow of critical assistance to the insular areas continues with minimal interruption and proper oversight.

This amount includes $87.0 million in current appropriations, which is a net decrease of $15.5 million from the appropriation for fiscal year 2010. The $87.0 million, in turn, includes $253,000 in anticipated savings from efficiencies and $15.4 million in program and earmark reductions. Fixed cost increases total $129,000, of which $96,000 are funded and $33,000 are absorbed. The current appropriations request includes $59.3 million in discretionary funding and $27.7 million in mandatory Covenant funding for Territorial Capital Improvement Program grants to the U.S. territories of Guam, American Samoa, the Virgin Islands, and the CNMI.

In addition to current account appropriations, we estimate $370.8 million for permanent and indefinite appropriations, including an estimated $146.0 million for fiscal payments to Guam and the United States Virgin Islands and $224.8 million for payments under the compacts of free association.

American Samoa Operations ($22.8 million), the second largest budget activity, is considered discretionary but is a directed appropriation. This essential assistance allows the American Samoa Government to provide basic health care, education, and public safety services to the islands’ residents, as well as support for the judiciary.

While not officially considered a mandatory program, Federal Services assistance ($2.8 million) is comprised of two subactivities that were negotiated and are defined in law. The first is reimbursement to the United States Postal Service for continuation of mail service to the freely associated states. Failure to provide this service would be a breach of the negotiated compacts of free association. The second activity provides funding for the Republic of Palau to conduct an annual financial audit.

The only truly discretionary programs are the OIA Salaries and Expenses account ($9.1 million) and the Technical Assistance activity ($12.1 million), which account for $21.2 million, or less than 5 percent of the total OIA budget of $457.7 million for fiscal year 2011.

Republic of Palau Compact

The OIA budget for 2011 includes a placeholder of $20.8 million in recognition of the ongoing review of the relationship between the United States and Palau. Legislation is being drafted that would extend the financial assistance provisions of the Palau Compact of Free Association for an additional fifteen years, through 2024, with total funding over the period of $250 million. Although the review is ongoing and the legislative proposal is still being developed, the Administration expects to propose a program of assistance that ensures the viability of Palau’s trust fund, maintains the stability of Palau’s government and continues Palau’s eligibility for Federal programs and services, including the U.S. Postal Service.

Empowering Insular Communities

As I noted earlier, the President’s budget focuses on empowering insular communities by improving quality of life, creating economic opportunity, and developing more efficient and effective government.

Quality of Life
OIA’s existing programs will continue to emphasize improvements to the quality of life of insular communities. Capital Improvement Program grants will be used to address a variety of basic but critical infrastructure needs in the U.S. territories, including the delivery of 24 hour potable water to the residents of Saipan. Technical Assistance funds will be used to continue a number of vital programs, such as the 4 Atoll Healthcare Program in the Republic of the Marshall Islands, that provide support not otherwise available to the insular areas.

Economic Development
While OIA’s programs substantially improve the quality of life of island communities, they have only indirectly played a role in island economic development. Because of their geographic isolation and lack of resources, island communities face unique economic development challenges. Little support is dedicated directly to economic development goals. Since his arrival at Interior, Secretary Salazar has placed great emphasis on the development of communities that are under his stewardship. Consistent with this aim, the President requests $5.0 million to implement the Empowering Insular Communities Program, which will focus on economic development.

The Empowering Insular Communities Program is designed to strengthen the foundations necessary for economic development in the islands by addressing challenges preventing the reliable delivery of critical services needed to attract investment. Critical services include power (with an emphasis on sustainable green alternatives), water, sewer, solid waste, healthcare and public safety. Building on these essential services, the program will proactively pursue economic development initiatives that encourage private sector investment in the insular areas.

In fiscal year 2011, Interior intends to use program funds to address two critical public service delivery issues; upgrading civilian infrastructure on Guam in preparation for the relocation of 8,000 Marines to Guam, and the creation and implementation of comprehensive renewable energy strategies in the insular areas. The pursuit of sustainable energy solutions is a high priority for the Department. It is particularly important for the insular areas, which continue to be extremely vulnerable to high oil prices due to their overwhelming dependence on imported fossil fuels.

Efficient and Effective Government
Given the various financial assistance programs under our purview, the Office of Insular Affairs always considers accountability for Federal funds in the insular areas a top priority. OIA is working with all of the territories and freely associated states to help the island governments improve financial policies and procedures, upgrade automated financial management systems, train staff, complete accurate financial statements, and meet Single Audit Act requirements. OIA’s sustained effort over the years to achieve island accountability has brought results. For many years, all the islands were several years behind in completing financial statements and annual audits. Now, nearly all are on time in meeting the requirements of the Single Audit Act. OIA will continue to assist in the development of more efficient and effective procedures so that the islands can give good account of both Federal and local dollars.

Conclusion

The insular areas will continue to be faced with tremendous challenges in 2011. President Obama’s budget will empower insular communities by allowing OIA to pursue strategies that foster economic development, promote sound financial management, and improve the quality of life for islanders, while respecting and preserving their unique cultures.

Ref: Anthony M. Babauta, Assistant Secretary of the Interior for Insular Areas; Before the House Subcommittee on Insular Affairs, Oceans and Wildlife
Regarding the President’s Fiscal Year 2011 Budget Request for the Office of Insular Affairs; February 24, 2010

The University of Guam fiscal year 2009 audit was released Tuesday by the Guam Office of Public Accountability. It was conducted by independent auditors Eide Bailly. It shows a $1.3 million increase in net assets, an increase of $3 million in grants and contracts, and the highest enrollment in ten years.

The auditors rendered an unqualified or clean opinion and found no material audit findings. In 2009, the University administered approximately 110 federal grants awards totaling $29M and maintained its “low-risk” audit status for the fifth consecutive year.

“The University achieved many positive outcomes that enable us to look to the future with confidence,” said UOG President Robert A. Underwood. “Along with our eight-year reaccreditation from the Senior Commission of the Western Association of Schools and Colleges, the successes detailed in the audit position the institution for further growth and service to our community. Given this critical juncture in the history of our island and the enormous challenges we face, it is important for the community to recognize that investments made in the institution yield strong programs and well-prepared graduates who will provide our island and region with the intellectual capacity necessary to manage change from a position of strength.”

“Grant and enrollment-related revenue growth as well as strict adherence to our financial management controls enabled the institution to show an increase in net assets,” said Vice President of Finance and Administration David O’Brien. “It is important to note that we have reduced our reliance on the government’s general fund to 41% of our total operations budget from 47% just six years ago. For every dollar appropriated, the University generates another $1.47.”

Senior VP for Academic and Student Affairs Helen Whippy added, “In academic year 2008-2009, the University produced 397 new graduates prepared to enter the workforce: 23 nurses, 137 educators, 26 scientists, 79 business men and women, 8 commissioned officers, 44 criminal justice and public administrators, and 80 other professionals. The 12% growth in grants and contracts has expanded student opportunities for research, service learning, and internships, and has also increased our community outreach and service efforts.”

Examination of the FY2009 audit discloses several of these trends:

* The University has been granted low-risk auditee status for Federal grants and contracts for the fifth consecutive fiscal year. UOG manages a complex array of over 110 federal grants (by Catalog of Federal Domestic Assistance number), up from 82 just three years ago. “Our low-risk designation validates our Federal program accountability,” states Comptroller Zeny Asunsion-Nace.
* The University brought in $48.4 million from its own operations, and reduced reliance on the government’s general fund to 41% of total revenues, excluding investments. For every $1 appropriated, the University generates an additional $1.47.
* New or continuing grants and contracts at $3.3 million were received. Total grants and contracts are $28.9 million, up 12% over last year, leveraging the government of Guam appropriation with outside monies and propelling the island’s economic, environmental and social development. The U.S. Departments of Education, Agriculture, and Health and Human Services were the largest grantors.
* Enrollment has increased significantly. The University was the natural choice for 3,550 students in Fall Semester ‘09 (4.8% growth over the prior year). Over the last six years, fall semester student enrollment has grown by 21%.
* There were no material findings or questioned costs. The auditor did report one significant deficiency pertaining to the financial closing process and one non-material questioned cost pertaining to charging 100% of an employee’s salary to a grant, rather than the applicable 50%.

“The University of Guam is accountable and we deliver results,” said President Underwood. “Our graduates, research and outreach services produce measurable advantages for our community and contribute to a strong institution of which our entire community can be proud.”

The audit is available on the website at www.guamopa.com.

Ref: PNC 2/23/10

The Port Authority of Guam’s $206.9 million modernization plan took a serious setback yesterday after the U.S. Department of Transportation (DOT) denied the port’s request for $50 million in national recovery grants for port projects.

The rejected grant request means the port can’t qualify for the $49.1 million low-interest loan it wants from the U.S. Department of Agriculture. The port still has a shot at that loan if it can get a $50 million grant from some other federal agency, the port’s board chairman said yesterday.

Of the $206.9 million port modernization budget, about $156.9 million is for improvements to meet the needs of the pending military buildup, to prevent the port from becoming a chokepoint for construction materials and supplies. The military plans to transfer 8,000 Marines plus about 9,000 of their dependents from Okinawa to a new base in Guam by 2014.

The balance of the modernization budget is for improvements that would be needed to serve existing port customers, even without a buildup.

Guam law states if the port doesn’t get the grant money, it must submit a new modernization plan to the Legislature within 90 days, one that doesn’t include projects to support the buildup — and with a budget that spends no more than $54.5 million, including the acquisition of two more cranes.

Federal and port officials yesterday said they are considering other funding options for the buildup-related port improvements, but they declined to name them.

Joint Guam Program Office (JGPO) Director David Bice, who met with port officials for about an hour yesterday morning, said he is confident there will be funding to support the port.

“This is very much a partnership as we go forward. We are both disappointed that the (recovery) grant was not approved,” Bice said. “I thought it was a very strong application. We’re looking at other options and we’re going to pursue other options because the modernization, expansion of the port is required for the buildup. The buildup begins here at the port.”

The port’s request for grant funding was one of 1,400 competing requests nationwide for a share of $1.5 billion in Transportation Investment Generating Economic Recovery, or “TIGER,” grants. The grants are part of the American Recovery and Reinvestment Act of 2009.

The reason the port’s grant request was rejected is unknown — the port simply wasn’t on the list of 51 winning grant recipients released yesterday. Monte Mesa, chairman of the port’s board, said he hasn’t received any rejection notice.

While Guam’s request for port improvement funding was denied, Philadelphia will receive US$23 million for bike paths and sidewalks; Dallas will receive US$23 million for a streetcar project; and Tucson, Ariz., will receive $63 million for its streetcar project.

Those cities all made the case that their projects would serve low-income or economically disadvantaged residents.

Guam Delegate Madeleine Bordallo yesterday said the transportation department gave a higher priority to rail, road and bridge projects.

“Which is disappointing given the effort that has been made to inform DOT that this grant was very important to the buildup,” she said. “The port of Guam has repeatedly been identified as a potential choke point for the military buildup, and the decision to not award the TIGER grant to the port of Guam is a step in the wrong direction for the federal response to Guam’s needs. The military buildup cannot succeed if we cannot get federal funding for these clearly identified needs.”

Bordallo said Tony Babauta, assistant secretary of the Interior for Insular Areas, told her federal assistance for Guam’s infrastructure is a priority for the administration and Babauta will work with the military, the transportation department and Guam to address the port’s needs.

The military last September designated Guam’s port as “strategic,” which was supposed to help the port’s case for grant funding, and Mesa yesterday said he is baffled by the transportation department’s decision.

The port’s application met all five of the grant requirements and also called for a 50-percent funding match by the port — something no other applicant offered, Mesa said.

He said it is now the federal government’s job to come up with an alternative funding solution.

“If all fails, and there’s really no hard funding source, then we will reconsider and work with the governor and the Legislature on what we will execute,” Mesa said. “There should be still a good working relationship moving forward with JGPO at this point. We are looking at positive solutions, and hopefully the federal government will continue to be a partner, and a true partner, in this modernization of our port.”

Gov. Felix Camacho yesterday called the grant rejection a major setback and said it changes the way Guam approaches the military buildup.

He said the military’s buildup needs are secondary to the port improvements needed for Guam residents.

“If the (federal) government could not commit to the territory for a very vital and essential function and service that not only benefits our people but serves their cause, then it proves clearly that … it’s not getting the attention that it deserves,” Camacho said.

Ref: GPDN inpart 2/19/10

The government of Guam’s financial leaders said they would release enough money so federally funded public school system employees won’t have to skip work, said Department of Education Superintendent Nerissa Bretania Underwood.

Department of Administration acting Director John Camacho said his agency will release about $6.1 million to DOE, which is enough money to pay the net salaries of local and federal employees, Underwood said.

DOA also will release $1.6 million to pay employee benefits the school system could not afford, Underwood said. These commitments were made during a meeting with DOA and Gov. Felix Camacho, Underwood said.

This money allows about 515 federally funded employees to keep working, but the threat of furloughs will be delayed for two weeks.

It is unclear if GovGuam will release enough cash to pay everyone’s benefits on Feb. 26 and DOE still can’t access federal funding that is normally used to pay federal employees, Underwood said. Hopefully, the U.S. Department of Education will allow the local school system to tap into some grant funding in the next two weeks, she said.

“This is going to be very tight,” Underwood said. “We also have utilities to pay and some other vendors.”

Underwood told employees who are paid with federal grant funds it looked like they would have to stay home. This included employees including reform program assistants, Gifted and Talented Education teachers and some English as a Second Language Teachers.

The Department of Education Extended Day program would also have to stop, she said.

Although these looming furloughs were the direct result of a local funding shortage, Guam DOE would not have been in this position if the U.S. Department of Education had more faith in its bookkeeping.

The local school system cannot access the grant funding that normally pays for these programs because U.S. DOE has not approved Guam’s consolidated grant application or the procurement paperwork needed to hire a federally mandated third-party financial manager.

Ref: GPDN 2/17/10

Congresswoman Madeleine Bordallo has announced that the U.S. Department of Health and Human Services (HHS) has awarded the Government of Guam $1.6 million in federal financial assistance. The grant received today from HHS will assist the Government of Guam in facilitating health information exchange by advancing the adoption and meaningful use of health information technology.

“The funding received from the U.S. Department of Health and Human Services will assist in improving the management of health data on Guam,” Congresswoman Madeleine Z. Bordallo said today. “Guam is one of 40 state recipients nationwide of this grant, and I commend the Obama Administration for prioritizing the improvement of managing health information sharing on our island. I commend Governor Camacho for securing these funds, and I look forward to this grant benefitting our island’s patients and health providers.”

Ref: Cong. MZB 2/12/10

More than 500 federally funded Guam DOE employees are once again facing the prospect of being laid off next week because the school system doesn’t have the money to pay them.

Superintendent Nerissa Underwood broke the news to those employees at a meeting at Tamuning Elementary Monday afternoon.

DOE needs close to $7 million dollars by Friday to pay both the federally funded employees and the local employees. But the Department of Administration has informed her that cash collections are so low, they won’t be able to guarantee the release of that amount.

Underwood says that as a result she had no choice but to warn the federally funded employees not to report to work next Monday, if Guam DOE does not get the emergency funding it needs.

U.S. DOE still has not agreed to allow Guam access to its federal Consolidated Grant Funds. Guam DOE can not use those funds until a third party fiduciary agent is in place toi manage Guam’s federal education funds. The fiduciary agent is not expected to be in selected and approved until April.

The situation is further complicated by the fact that U.S. DOE was shut down all last week because of the blizzard in Washington. And Tuesday is the President’s Day holiday in D.C. So Underwood won’t be able to talk to anybody at U.S. DOE until Wednesday our time.

Ref: PNC 2/16/10

Click here to view and/or download the State of the Island Address - 2010 (pdf format)

The Hagatna Heritage Walking Trail, slated for completion in early March, will not only give tourists something to enjoy as a half-day destination on Guam, it may also serve as a teaching tool for local communities who want to learn about Chamorro history.

The 2.5-mile trail, which winds through 17 historic sites in Guam’s capital, is scheduled to open just in time for Chamorro History Month in March, according to Guam Department of Parks and Recreation officials. The project not only involves the restoration of historic sites in Hagatna but it also includes developing a walking trail that connects them.

Lighting, sidewalks and benches have been installed at San Antonio Bridge; major work was done to the upper level of Fort Santa Agueda, including installing new trash receptacles and planters; and a new bridge has been constructed at Padre Jose Bernardo Palomo Park. Lighting and new vegetation at Chief Quipuha Park and revamping the walking trail surrounding Paseo Stadium are just a few of the new improvements, according to Joe Duenas, director of Guam Department of Parks and Recreation.

“This project, funded using a $1.398 million grant from the U.S. Department of Interior, comes at an important time – when heritage is something we need to embrace in the face of Guam’s changing dynamic,” Duenas said. “This is really just a footprint of things to come in the future. I really think that everyone – from the Government of Guam to the private sector – should build on this as a whole and enhance the trail as funds become available. Everyone is going to have to work in concert in the future to ensure the project is enhanced and properly funded for maintenance.”

The project was lauded by Gerald S.A. Perez, general manager of Guam Visitors Bureau (GVB).

“This trail is not only a significant accomplishment for the village of Hagatna and the Hagatna Foundation, but it is yet another aspect of building upon the island’s unique identity and destination brand,” Perez said. “We’d love to see more projects in all of our villages that capitalize on the island’s cultural heritage and history.”

According to Duenas, who said he envisions Hagatna Heritage Walking Trail as a site for student field trips, Parks and Recreation plans to staff it with two fulltime park rangers to help facilitate its use by locals. The employees will be wearing green uniforms emblazoned with the department logo. Officials hope the effort will also help reduce litter and vandalism.

“The near completion of the Hagatna Heritage Walking Trail is a celebration, but we can’t forget to maintain it as a community,” Perez said. “This not only allows the visitors that come to our island to learn more about our Chamorro culture, but it gives us an opportunity to do the same. Our students and younger generations who haven’t been exposed to our history as much can learn about it hands on in Hagatna.”

The Hagatna Foundation first hatched the idea of a walking trail in 2005 when Visitors Bureau board member Bert Unpingco was also a foundation member. The same year, the Office of the Governor of Guam submitted a grant application to the U.S. Department of Interior. Once it was awarded, the Parks and Recreation was tasked with managing the project.

A ribbon-cutting ceremony for the Hagatna Heritage Walking Trail is tentatively scheduled for March 4.

Ref: S&S 2/12/10

The Office of the Attorney General has released the findings of an investigation of a Port Authority of Guam contract paid through federally funded “Office of Economic Adjustment” funds. The amount of $350,000 is under local and federal review and was placed on hold for payment.

Click on the link to read the Attorney General’s findings.

Governor Felix P. Camacho broke ground for the Northern Sports Complex Recreation Pool and Fitness Trail on Feb. 4, 2010. Construction will begin in conjunction with the ongoing construction of four baseball fields.

“Building a new pool facility, a fitness trail, along with four baseball parks, will compliment the existing gymnasium and soccer fields in the area. This will be Guam’s first centralized sports complex where all sports can be played. It is an investment in our youth, an investment in a healthier community, and in line with my Lt. Governor’s Healthy Guam Initiative,” Governor Camacho said. “I’d like to commend the dedicated employees at the Department of Parks and Recreation and GHURA, for their hard work in bringing this positive project to life.”

The $5 million project was made possible via multiple grants applied for by the Department of Parks and Recreation through the National Park Service Land Water Conservation Fund, the GHURA Community Develop Block Grant, and the Department of Interior’s Compact Impact Grant.

“Once completed at the end of the year, a community sports complex featuring the swimming pool, fitness trail, baseball fields, soccer fields, and gymnasium facilities will bring to fruition a dream that was discussed in 1970’s,” DPR Director Joe Duenas said.

Ref: Governor Release 2/3/10

The government will no longer be able to advance allotments for the Guam Department of Education due to low revenue collections. Dr. Nerissa Underwood Education superintendent Dr. Nerissa Underwood has received this notice from the Bureau of Budget and Management and George Bamba, the governor’s chief of staff.

The notice prompted Underwood to write to Phil Maestri, USDOE director for risk management service, seeking approval to use the 2008 consolidated grants carryover funds of approximately $8 million.

“The lack of some type of bridge financing combined with existing personnel costs and contractual obligations that local budget have already been designated to fund, makes it very difficult to support the federally funded programs,” Underwood stated in her Jan. 27 letter to Maestri.

“But until such time that we have the third-party agent in place, GDOE needs assistance in meeting the financial obligations in supporting programs and services that are under the Consolidated Grant,” Underwood wrote.

But USDOE made it clear to Underwood that funds cannot be used from the consolidated grant until a third-party fiduciary agent is in place, which will not occur until April.

The $8 million cannot be used since it was carried over to the 2009 consolidated grant, therefore the 2008 funding no longer exists. The 2009 grant has yet to be awarded because of the special conditions imposed on GDOE and the need for a third-party agent.

Underwood argued that GDOE submitted a detailed description of how GDOE intends to use the 2008 consolidated grant carryover funds. Also, a series of conference calls were made in December and January and the revised 2009 consolidated grant application was submitted on Jan. 22 as well as the latest packet on the reallocation of the $8 million carryover funds.

Furthermore, Underwood said GDOE also submitted assurances signed by herself and GDOE’s internal auditor on Nov. 29 with revised assurances submitted on Dec. 14. The revised assurances were approved by USDOE, said Underwood.

No guarantees

And although GDOE has assured the governor and speaker Judi Won Pat that the local government will be fully reimbursed once the consolidated grant is awarded, there are no guarantees.

“There is no guarantee that they will be reimbursed, this is a risk that Guam is taking,” said a confidential source.

According to the source, the Success For All program that Agana Heights Elementary School implemented has no tutors.

“In the contract, it states that the program has to be implemented properly. If it is not being implemented properly, there will not be any reimbursement for this program,” the source said.

“GDOE is just paying the salaries of these employees, but are they implementing the program. That is the question. Are they doing outreach? No, because there is no money to do any outreach. It’s not being implemented properly and the third-party is going to tell GDOE that it needs to pay back the government and that USDOE will not reimburse the local government because the programs were not implemented properly,” the source said.

Success For All consultants will be pulling their contract soon if GDOE does not pay their invoices, said the source.

Ref: MVar 2/2/10

A NOAA awarded to the University of Hawaii’s Marine Laboratory is aimed at helping protect coral reefs on Guam and elsewhere in the Pacific.

The $199,996 grant is meant to address the effects of land-based sources of pollution on coral reefs in the Pacific.

The money will fund the first year of a five-year, $1 million dollar project.

With this grant, researchers will help resource managers, policy makers and community leaders develop and implement strategies to prevent or reverse coral reef degradation on the Pacific Island nations of Palau, Pohnpei, Guam and Yap. The grant will facilitate information exchange among indigenous fishers, resource managers, researchers and students in an effort to learn from previous work and to incorporate traditional ecological knowledge into management decisions.

“This new grant will allow us to continue addressing problems resulting from poor land-use practices in the past,” said Noah Idechong, speaker of the Palau National Congress and a key member of the project’s advisory group. “We will also engage the community in proactive planning for future activities and test culturally appropriate approaches supporting coral reef sustainability for us, our children and generations to come.”

Project organizers at Kewalo Marine Laboratory are working with the Palau International Coral Reef Center, The Conservation Society of Pohnpei, the Palau Conservation Society, the University of Guam Marine Laboratory and the Yap Institute of Natural Science to develop this coral reef protection imitative. Project organizers will also share scientific expertise and institutional resources with ongoing NOAA-funded coral reef research and management activities in Maunalua Bay in Oahu, Hawaii and the new Western Pacific Coral Reef Institute at the University of Guam.

“This project is an excellent example of how NOAA can provide not only relevant science information, but also a framework to allow communities to develop and implement effective strategies to stop and hopefully reverse environmental degradation,” said Felix Martinez, Manager of the Coral Reef Ecosystem Studies Program at the NOAA Center for Sponsored Coastal Ocean Research.

NOAA understands and predicts changes in the Earth’s environment, from the depths of the ocean to the surface of the sun, and conserves and manages our coastal and marine resources.

Ref: PNC 1/27/10

Congresswoman Madeleine Z. Bordallo announced that the U.S. Department of Agriculture (USDA) has awarded the University of Guam $50,000 in federal financial assistance through the agency’s Rural Business Enterprise Grants Program. The funding awarded today to the University of Guam is part of the American Recovery and Reinvestment Act. President Barack Obama signed this bill into law on February 17, 2009, and Guam has since received over $168 million in financial assistance through the American Recovery and Reinvestment Act.

“The funding received today from the USDA will allow the University of Guam to provide technical assistance to small business owners through its Small Business Development Center,” Congresswoman Madeleine Z. Bordallo said. “The UOG will be able to continue its training of business counselors and entrepreneurs in financial literacy, strategic business planning, communication, and professional development through this Recovery Act funding. I thank Dr. Underwood for his work in securing these funds, and I look forward to the American Recovery and Reinvestment Act continuing to benefit our island.”

University of Guam President Dr. Robert Underwood stated, “This grant will help small businesses take advantage of new opportunities and cultivate the next generation of entrepreneurs. The University continues to be of service to the island’s economy.”

Ref: 1/22/10 Hse. of Rep. Cong. Bordallo