Legislative Findings and Intent

I Liheslaturan Guåhan finds that Guam public school facilities face deficiencies in its roofing, exterior, interior, structural, mechanical, electrical, plumbing, and school grounds, which create a non-conducive environment that hinders learning and the work and production of teachers and students. I Liheslaturan Guåhan finds that the Guam Department of Education is about $90 Million behind on maintenance projects for the island's public schools, according to a report commissioned by the Department of the Interior in 2012, and recently submitted to the Guam Department of Education in August 2013. It is, therefore, the intent of I Liheslaturan Guåhan for the government of Guam to use one quarter of the business privilege tax to pay for the interest payments of the lease and lease-back as a form of bridge financing until the maturity of the Business Privilege Tax bond series 2013C. COL2232015 CHAPTER 58E THE FINANCE, DESIGN, RENOVATION, REHABILITATION, CONSTRUCTION OR MAINTENANCE OF PUBLIC SCHOOLS 1 Liheslatura finds that after reviewing the summary of outstanding General and Limited Obligation debts as of March 1, 2013, that the debt ceiling assessed value is at One Billion One Hundred Thirty Nine Million Four Hundred Sixty Four Thousand Eight Hundred Fifty Three Dollars ($1,139,464,853). It also states that the General Obligation Debt is Four Hundred Forty Six Million Four Hundred Seventy Three Thousand Eight Hundred Fifty Three Dollars ($446,473,853), and the Limited Obligation Debt is Six Hundred Sixty Three Million Eight Hundred Ninety Six Thousand Eight Hundred Three Dollars ($663,896,803), with an accumulated total of One Billion One Hundred Ten Million Three Hundred Seventy Thousand Six Hundred Fifty Six Dollars ($1,110,370,656). Subtracting the debt ceiling limit less the General and Limited Obligation Debts leaves the amount for future debt obligation at Twenty Nine Million Ninety Four Thousand One Hundred Ninety Seven Dollars ($29,094,197). 1 Liheslatura further finds that the cost to fund the rehabilitation of the public schools will certainly exceed the debt ceiling obligation if a general obligation bond is pursued. To circumvent Guam’s debt ceiling cap, 1 Liheslatura finds that the construction of Okkodo High School, Astumbo Middle School, Liguan Elementary School, Adacao Elementary School, John F. Kennedy High School, and the expansion of Okkodo High School, has demonstrated the fundamental soundness of using municipal lease as a vehicle to build new educational facilities. By making the most of municipal leasing to rehabilitate and construct Guam public schools, the remaining future debt obligation may be used to fund other priorities of the government.