Lawmakers add $16.3M Simon Sanchez funding to FY2026 budget

BY PAULY SUBA
Journal Staff

Senators of the 38th Guam legislature voted without objection to set aside $16.3 million from the government’s unobligated fiscal 2025 general fund balance for leaseback payments tied to rebuilding Simon Sanchez High School, marking a major step in the long-delayed project.

The amendment, introduced by Sen. Joe S. San Agustin during fiscal 2026 budget deliberations on Aug. 14, directs $16,377,125 to the project from funds identified in the June 2025 Consolidated Revenue and Expenditure Report.

“The rebuild of Simon Sanchez High School can finally be a reality for the thousands of students it will serve,” San Agustin said. “Instead of just building a shell, let’s truly build the quality facilities that the students of Yigo… deserve.”

The Yigo campus has faced years of stalled procurement, cost escalations and legislative debates. Lawmakers from both parties framed the funding as overdue.

“I think if we have unobligated fiscal year 2025 general revenue balance, we should use it on Simon Sanchez if it’s available,” said Sen. William J. Parkinson. “At some point, we have to put our money where our priorities are… let’s cut the check and let’s get the ball moving.”

Sen. Tina Muña Barnes recalled former Sen. Roy Quinata’s advocacy for the rebuild and the “bureaucratic red tape” that delayed construction. “The priorities are our students… we need to make sure that this funding source is there for them,” she said.

Sen. Chris Barnett tied the discussion to broader budget pressures, pointing to a $40 million business privilege tax cut for large corporations. He warned that the revenue loss is forcing agencies like the Guam Department of Education to consider cutting school aides, counselors, sports programs and maintenance.

Sen. Chris Dueñas stressed that the school already had the legal authority to go to market for financing, but rising interest rates, inflation and delays in issuing the request for proposals increased costs. “This is critical at this point to realize the campus for the Sharks that we promised,” he said.

The day before the vote, Dueñas pressed Lester Carlson, director of Bureau of Budget and Management Research (BBMR) on why funding hadn’t been appropriated earlier. Citing Public Law provisions, Dueñas said the Legislature could have allocated up to $16.3 million annually since the law’s enactment to cover capitalized interest, the building fund and other costs during pre-development. “We could have been doing that since this public law… correct?” he asked.

Carlson said that would not have been prudent before finalizing the financing package, explaining that the $166 million borrowing cap would cover capitalized interest and an initial $143 million construction fund. Cost escalations, loss of $9 million in federal funds for furniture and equipment, and a required 1% set-aside for the arts reduced that to about $132.9 million, less than the $136 million base bid. “Do we want to give the Sharks an aquarium or a tank?” Carlson asked. “Right now, we are constrained by cost escalations in construction. The length of time that… has lapsed means the cost needs to be adjusted.”

Dueñas countered that the administration had publicly committed to starting the project this year yet did not include the appropriation in its Executive Budget Request. “If your commitment was there, you would have put it in your EBR,” he said. Carlson replied, “I’m not responsible for the issuance of the RFP… I believe it’s DPW,” adding that funding requests came after the EBR was submitted.

The exchange broadened to include Steve Guerrero, director of the Office of Finance and Budget (OFB), who said the administration believed existing law already authorized the financing. He acknowledged that delays have increased costs. “Every day that goes by, it’s going to cost this government money,” Guerrero said.

Dueñas said the Legislature has now earmarked $15.8 million in audited revenues from 2023 in the budget’s miscellaneous provisions, and could make a final appropriation when the administration is ready to proceed. Guerrero agreed the Legislature has the authority to fund the project when needed.

“We did not appropriate that money in 2024. We did not appropriate that money in 2025. It wasn’t in the EBR. Damn it, we’re going to get that money,” Dueñas said. “If we’ve done it for everything else, doggone it, we can do it for the Sharks.”

Other senators voiced urgency. “I know the agony that the community has suffered all these years,” said Sen. Sabina F. Perez, who taught at the school. “If we could just get to the finish line… hopefully we’ll see a groundbreaking real soon.”

The funding vote came as lawmakers worked through other budget amendments, including restoring contributions to the government’s Rainy Day Fund and adjusting business tax rates. Those measures drew more debate and split votes, but the Simon Sanchez high school funding passed without opposition.

San Agustin, “We can literally say loudly, ‘Biba Sharks,’ now let’s bring them home.” mbj