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A STATEMENT FROM THE ACTING GOVERNOR AND GOVERNOR OF GUAM

Acting Governor Michael W. Cruz, M.D. issued the following statement following an accident involving a U.S. Air Force B-52 aircraft over Guam’s waters yesterday:

“Governor Camacho and I extend our prayers to the families and friends of the crewmen on board the B-52 and we will continue to hope for the safety and welfare of the other members that have not been found,” Acting Governor Cruz said. “The Guam Fire Department and the Guam Police Department will continue to provide any assistance with the ongoing search. In the meantime, I encourage the people of Guam to pray for all those involved and for the loved ones of each crewmember.”

$237.8 M Guam Buildup Budget Submitted to OMB - Governor makes federal case to prioritize Guam’s needs in FY2010 budget

(Washington DC) Governor Felix P. Camacho officially submitted a $237.8 million budget request for the Guam Buildup to the Office of Management and Budget (OMB).

The budget proposal, presented directly to OMB Director Jim Nussle requests $237.8 million from various federal executive branch departments and agencies for inclusion in the FY 2010 Presidential Budget request to the United States Congress.

“It is unrealistic for any U.S. community to plan for, fund and manage unfunded federal mandates imposed by the bi-lateral agreement within the aggressive timeline without assistance from the U.S. Government,” said Governor Camacho. “Our budget request will do much to improve our seaport, roads, utilities, schools, health care systems and public safety programs to sustain an acceptable quality of life for both the civilian and military communities for years to come.”

The requested FY 2010 funds are intended to finance infrastructure improvements that include new water wells, reservoir repairs, modernization of the Port Authority of Guam, transportation infrastructure and workforce enhancement and expansion.

The breakdown of the Guam Buildup Budget is as follows:

a) Infrastructure $169,867,831

b) Labor $ 28,796,961

c) Economic Development $ 12,181,562

d) Public Safety $ 8,703,306

e) Health & Social Services $ 5,385,320

f) Natural Resources $ 3,497,039

g) Education $ 3,222,213

h) Ports & Customs $ 3,020,005

i) Environment $ 2,205,127

j) Housing $ 751,734

k) Social & Cultural $ 225,000

Total $237,856,098

Director Nussle assured Governor Camacho that the FY2010 Budget submission will get the full consideration from OMB. The OMB Director said the Guam Buildup already has received support from Cabinet officials including Interior Secretary Dirk Kempthorne and Health and Human Services Secretary Michael Leavitt.

Governor Camacho invited Director Nussle and Edna Falk Curtin of the OMB National Security Division to visit Guam to further discuss the impacts of current and future federal budget processes that will assist the military relocation.

“The government of Guam does not have the revenue needed to support the military buildup and ensure long-term sustainability,” Governor Camacho said. “Guam must be given the support and resources needed to address the needs of our growing community and the mission of the U.S. Marine Corps.”

Later today, Governor Camacho will attend a reception as part of the National Commemoration of the Liberation of Guam, the Battle for the Northern Marianas and the War in the Pacific being hosted by Guam Congresswoman Bordallo at the Cannon House Office Building on Capitol Hill wrapping up a three-day visit to Washington DC.

Governor Joins National Discussion on Energy Challenges - Comprehensive National Energy Policy focus of NGA Centennial Meetings

(Philadelphia, Pennsylvania) Governor Felix P. Camacho joined discussions with governors from throughout the nation as they explored alternative energy sources and new strategies to reduce carbon emissions nationwide during the final day of the 2008 National Governors Association Annual Meeting.

Governor Camacho and other governors focused on the results of a recent National Petroleum Council Study that called on the nation’s policy leaders to reduce dependency on foreign oil.

“The price of fuel, electricity and the basic needs of our people are hitting all Americans hard, especially the people of Guam who rely almost entirely on imported goods,” said Governor Camacho. “We must look at innovative ways to promote secure and affordable energy solutions for our island and our nation.”

The session provided an opportunity to look at options to craft a comprehensive and multi-faceted energy future for the United States. Among the presenters was Jim Slutz, Acting Principal Deputy Assistant Secretary of the U.S. Department of Energy, who in breaking down the NPC study remarked that for areas like Guam, challenges remain to addressing power supply and demand issues that would impact livelihood and cultures. Governor Camacho and the Nation’s Governors called for a National Energy Policy to keep pace with the rest of the industrialized nations of the world.

“What we as a country are doing about this important issue needs more interaction from the federal government,” said Governor Camacho. “The more engaged the federal government is, the more they will see the benefits of expanding U.S. supply, strengthening energy security, reinforcing capabilities and lowering our carbon footprint for the good of our country and the world.”

The final plenary session focused on clean energy technology. Dr. Richard Lester, director of the Industrial Performance Center and a professor of nuclear science and engineering at the Massachusetts Institute of Technology, joined the discussion with Governor Camacho and the other governors.

Governor Camacho will leave Philadelphia to join Congresswoman Madeline Z. Bordallo in Washington D.C. for a wreath laying ceremony at Arlington National Cemetery and for a celebration of the 64^th Liberation of Guam at the U.S. House of Representatives.

Governor Camacho Joins NGA in Renewing Focus on National Energy Issues - National Governors Association celebrates 100th Anniversary in Philadelphia, PA

Governor Felix P. Camacho will be heading to Philadelphia, Pennsylvania to join governors throughout the nation in exploring “Options for a Secure and Affordable Energy Future” during the National Governors Association Centennial Meeting from July 11-14, 2008.

Governor Camacho will be working with NGA Chairman and Minnesota Governor Tim Pawlenty to discuss the Association’s “Securing a Clean Energy Future” program during a Natural Resources Committee meeting. Members will focus on formulating policy options as the nation addresses critical needs in providing affordable energy alternatives, especially for rural and lower income citizens.

“We must take an aggressive approach to optimize our resources and implement new solutions to help our communities become more energy efficient, especially as we face the challenges of rising oil prices,” Governor Camacho said. “This session will allow us to consult with leading experts at state, territorial and federal levels to ensure a sustainable and affordable energy future for all Americans.”

A panel of national experts and officials from the U.S. Department of Energy, the Office of Fossil Engery, the National Rural Electric Cooperative Association and the American Council on Renewable Energy will be working with the NGA to present information on traditional and renewable sources of energy, energy investment, and energy issues that affect rural areas.

President Theodore Roosevelt convened the first meeting of the nation’s governors in 1908. The NGA has since carried on its mission for 100 years and will celebrate its centennial meeting on July 11–14, 2008.

Hosted by NGA Vice Chair Pennsylvania Gov. Edward Rendell, the 4-day meeting will celebrate a century of state leadership while addressing issues of critical importance to the nation’s future.

Governor Shares Economic Opportunities in New Zealand - State visit to highlight Guam Buildup progress with government, business officials

(Wellington, New Zealand) Governor Camacho is on an official state visit to New Zealand where he is sharing business, trade and economic opportunities with government and business officials who have expressed a keen interest in the Guam Buildup.

“This is an exciting opportunity for both Guam and New Zealand as great prospects lie ahead for both our island communities,” said Governor Camacho. “This is a great chance for us to learn more about the innovations they are making in a number of key industries that I hope we can expand to this part of the Western Pacific.”

Governor Camacho today met with 70 private sector leaders to discuss opportunities available with the Guam Buildup during a forum at the University of Auckland Business School.

The Guam-New Zealand Business Forum was organized by the New Zealand Pacific Business Council in cooperation with the New Zealand Office of Foreign Affairs and the New Zealand Trade and Enterprise.

“Finding a way to bridge the gap between Guam and the rest of the region has been an important initiative of the Administration,” said Governor Camacho. “Working together and discussing the issues of importance will benefit many island communities as we share many of the same concerns as we face similar issues that affect our people.”

The program for the State Visit, prepared by the New Zealand Trade and Enterprise, will cover the cities of Tauranga, Rotorua, Auckland and Wellington where he will meet with various leaders from the public and private sector.

The state visit also will include courtesy calls to members of New Zealand parliament officials, including Prime Minister Helen Clark.

“Corporations in New Zealand have done great research into the Guam Buildup,” Governor Camacho said. “There is a commitment to assist Guam as we move forward and I am encouraged by this gesture.”

Governor Camacho will return to Guam on Thursday, July 10, 2008.

$7.8 Million Appropriated for Retiree Medical Insurance - Governor signs Bill No. 316, sufficient authority for rest of fiscal year

Governor Felix P. Camacho today signed Public Law 29-85 appropriating an additional $7.8 million to the Retirement Fund for health insurance premium payments and retiree life insurance subsidies to ensure proper coverage for the remainder of the fiscal year.

“This government must protect its retirees and live up to its obligations to them,” Governor Camacho said. “I want to thank Senator Pangelinan and his colleagues for working with my Administration to ensure retirees have proper medical coverage.”

The Administration worked with Senator Vicente Pangelinan to immediately release $2.4 million to the Retirement Fund needed to cover current health insurance arrearage payments for retirees.

PL 29-85 stated that the budgetary shortfall was due in part to the Actuary’s overestimation of active members’ cost savings and the underestimation of the retirees’ cost increase.

U.S. DOE Threatens to Suspend GPSS Funds; Governor Renews Call for Change at GPSS

Governor Felix P. Camacho is renewing his call for direct management control of the Guam Public School System following a letter from the U.S. Department of Education today informing the Governor and the public school system about the possible suspension of the release of the Fiscal Year 2008 consolidated grants to GPSS.

U.S. DOE’s concerns are due to recent events at GPSS and the current administrative instability.

“As I warned in my State of the Island Address in April, there must be a change to the composition of the school board, a restoration of Executive Branch authority over GPSS and the reinstatement of the Governor’s authority to appoint the Superintendent,” Governor Camacho said. “We must change the way GPSS operates, otherwise this government will jeopardize millions in funding and students will suffer for it.”

U.S. DOE Risk Management Service Director Philip A. Maestri, in his letter to the Governor, specifically cited the termination of former Superintendent Luis Reyes, the appointment “and subsequent immediate resignation” of Superintendent Giovanni Sgambelluri and the designation of two Interim Superintendents for GPSS, all within the span of three months.

“The apparent volatility of the GPSS management leadership raises significant concerns about the organization’s ability to continue to improve its administration of Federal education grants, to plan for the allowable and effective use of Federal funds, and to implement Federally-funded programs and projects in accordance with all applicable Federal requirements,” Maestri stated in his letter.

In addition to the instability of GPSS leadership, U.S. DOE also is concerned with the pending decision to delay the opening of public schools and the lack of a list of viable reform programs schools may implement at the start of the 2008-2009 school year.

Maestri stated the government of Guam “must satisfactorily demonstrate its compliance with program requirements as well as its administrative capacity by June 27, 2008, so that we may make timely decisions on the issuance of FY 2008 grants to GPSS.”

Governor Camacho immediately called Speaker Judith Won Pat after receiving the letter, provided her a copy and discussed the importance of the Executive Branch and the Legislature working cooperatively to resolve this issue, which continues to plague GPSS.

“We are working with Speaker Won Pat to address this issue and to pass legislation that will demonstrate to U.S. DOE our commitment to fixing the problems at GPSS once and for all,” Governor Camacho said. “I call on all senators, parents, students and teachers to support the changes we are proposing that will restore stability and accountability to the leadership of GPSS. Our actions will determine the fate of millions in federal funding and should be focused on what is in the best interests of students.”

Speaker Won Pat will be holding a public hearing on Tuesday, June 24, 2008, at 2 p.m. for Bill No. 293, which proposes the creation of a hybrid school board and the reinstatement of the Governor’s authority to appoint the Superintendent. Later that afternoon, Speaker Won Pat will hear Bill No. 248, which proposes charter schools. The Governor has endorsed both measures.

“The current way GPSS is functioning has failed,” Governor Camacho said. “We cannot allow GPSS to continue operating the way it is now. Our schoolchildren are too important and we must change things to give students a better education and learning environment, so they can achieve their God-given potential.”

Funds Awarded to Complete Dandan Land Condemnation

More than $2.1 million in federal grants requested by Governor Felix P. Camacho has been allocated toward the municipal solid waste landfill project. The Fiscal Year 2008 Capital Improvement Project Grant request was approved by the U.S. Department of the Interior on June 11, 2008. “This is another step forward in our efforts to close the Ordot Dump and open the new landfill,” Governor Camacho said. “This is a priority for our community that we’ve expressed to the Interior Department and we appreciate their partnership.” The funding will supplement $1.4 million in fiscal years 2006 and 2007 CIP grants, which were allocated toward the condemnation of the land at Dandan for the new sanitary landfill. The supplemental $2.1 million in FY 2008 CIP grants provides additional funding to compensate landowners, whose land is being condemned for the sanitary landfill. “We will continue working with GBB to move the process forward and open a new landfill once and for all,” Governor Camacho said.

Port Partners with Maritime Administration to Lead Modernization Efforts

The U.S. Department of Transportation, Maritime Administration will help the Port Authority of Guam in upgrading and modernizing the Port of Guam in anticipation of unprecedented cargo movement into the island.

Governor Felix P. Camacho recently has signed a Memorandum of Understanding between the Port Authority of Guam and Maritime Administration, naming Maritime Administration the lead agency for the Port Modernization Initiative.

“I am excited about this partnership, which means more resources and greater opportunities to build port facilities that will sustain the economic future we envision for Guam,” Governor Camacho said. “This partnership understands the needs of the U.S. military in its build up effort, our people and how the seaport’s success will mean greater prosperity for our people.”

The MOU signals a major federal commitment to the buildup efforts in Guam directly affecting the civilian community. Among its responsibilities, Maritime Administration will coordinate with other federal agencies that receive annual Congressional appropriations and other funding that is identified for port modernization, assist the port on the NEPA process and expedite the modernization of the port by engaging professionals to perform environmental studies inclusive of overall engineering design of the port and construction activities.

“We are honored to be involved in this project,” Maritime Administrator Sean T. Connaughton said. “The Commercial Port of Guam is vital to our national security, not only because of its location, but also because of its ability to assist in deployment of defense assets.”

Maritime Administration will administer the implementation of the Port Modernization Initiative when and if the Legislature adopts it. The agreement also is contingent on Senate passage of H.R. 6007, introduced May 8, 2008, by Congresswoman Bordallo, which authorizes Maritime Administration’s involvement. The agreement will be amended accordingly if the Senate does not approve H.R. 6007 by September 30, 2008.

“I want to thank Congresswoman Bordallo for her efforts to get this authorization through Congress and I encourage the U.S. Senators to adopt the plan swiftly,” Governor Camacho said.

Maritime Administration previously has partnered with seaports in Alaska and Hawaii, modernizing the port facilities there. Along with Maritime Administration, the Port of Guam extends the “Coalition of the Committed and Willing,” which includes key Federal partners such as the Office of Insular Affairs, Economic Development Authority, USDA, and the Office of Economic Adjustment, all of whom have contributed to efforts at the Port. The strategic alliances formed in support of the Port Modernization Initiative, showcases the collaboration between the government of Guam and the Federal Government to improve the overall quality of life for all Guam residents.

The Port Modernization Initiative calls for $195 million in improvements to the entire port facilities to accommodate the import and transshipment of goods during the height of the Guam Buildup and to sustain Guam’s economic growth beyond the next decade. Ten percent of the planned expenditures, or $19.5 million, already has been identified. Parsons Brinkerhoff International, the contractor that updated the 1999 Port Master Plan, will provide the first draft of the Financial Feasibility Study in mid-June. This study will give clear financial direction as to how the $195 million in improvements under the Port Modernization Initiative will be funded.

GovGuam to Receive $4.4 Million for Environmental Mitigation Projects - U.S. Navy, federal agencies sign agreement with GovGuam to fund reforestation projects

Governor Felix P. Camacho today signed an agreement with the U.S. Navy and other federal partners that will provide $4.4 million to fund the reforestation of 500 acres of land around the Cetti Bay Watershed to prevent further damage to Guam’s coral reefs caused by environmental erosion.

"This is an important initiative that further demonstrates the need for Guam to work closely with our federal partners to ensure that we are given the resources and support we need to sustain Guam as we move forward with the military buildup," Governor Camacho said. “The health of our natural resources is critical to sustainable growth and our quality of life during this buildup and in the future.”

The mitigation project is part of the U.S. Navy\'s requirements set by the U.S. Army Corps of Engineers to extend the Kilo Wharf on the U.S. Naval Station Guam to mitigate coral reef damage in the surrounding area.

The agreement is the result of a partnership between the government of Guam, the U.S Environmental Protection Agency, the Army Corps of Engineers, the U.S Fish and Wildlife Services, the U.S. Forestry Services and the National Marine Fisheries Services.

The agreement was signed this morning during a press conference held in the Governor\'s Conference Room, Adelup.