by Jason SalasKUAM News
Tuesday, November 13, 2007
The Guam Department of Labor released a review of federal expenditure trends for Guam in fiscal years 1993 to 2005. The report states total federal expenditures on Guam increased by over 40% from $1 billion in FY1993 to $1.4 billion in FY2005. In 1995, the federal expenditure dropped to just over $800 million and remained in the $800-900 million level until two years ago.
Department of Labor chief economist Gary Hiles says in FY2005 the bulk of federal government expenditures went to procurement contracts with $411.4 million, followed by $376.8 million for grants, $224.2 million for salaries and wages, and $328.5 million for retirement and disability payments. Hiles says although we see a higher dollar amount incoming from the feds, there has been no adjustments made for a higher cost of living.
He told KUAM News, "Since the population is growing it takes more money to create the same welfare effect for the population...even though we have more dollars, if it's adjusted for the higher cost of buying things in real terms, it's not quite as large of an increase."
View the report as compiled by the DOL by clicking here
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