Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

TexasTowelie

(111,277 posts)
Sat Jul 23, 2016, 08:49 AM Jul 2016

Guam Memorial Hospital Borrowing Bill Signed Into Law

Guam - Acting Governor Ray Tenorio signed Bill 340 into law allowing GovGuam to borrow $45 million dollars for it's operational expenses.

Specifically GovGuam will be borrowing for vendor payments. $20 million will pay current debts to vendors, $10 million will pay future vendor bills for the rest of the fiscal year and $15 million will go towards vendor payments for next fiscal year. Only two senators voted no on the measure namely Nerissa Underwood and Mike San Nicolas. "When you have an operational shortfall you can't borrow you're way out of it because operations are supposed to be funded through cash flow and you're supposed to bring in the revenue necessary to sustain your operation. If you borrow to cover operational costs that cost is never gonna go away and you're gonna end up borrowing again in the future,” said San Nicolas.

The Senator says he is now concerned about GMH's push to borrow $120 million for capital improvement projects considering that the last capital improvement project or the urgent care center failed to generate revenue. Because of this Senator San Nicolas says he will hold bill 338 in his committee.

http://www.pacificnewscenter.com/local/10240

Latest Discussions»General Discussion»Guam Memorial Hospital Bo...