Micronesia in Review: Issues and Events, 1 July 2017 to 30 June 2018
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Micronesia in Review: Issues and Events, 1 July 2017 to 30 June 2018 Reviews of the Federated States in times of catastrophe (UT, 14 Aug of Micronesia, Kiribati, Nauru, and 2017). Palau are not included in this issue. Despite the heated rhetoric, the Trump administration soon sought Guam to deescalate the war talk with a new July 2017 to July 2018 spanned a strategy of engagement, and Trump time of fire and fury for the island met with Kim during a June 2018 of Guam. A war of words erupted peace summit in Singapore. Return- between Donald Trump and North ing from the summit, Air Force One Korean leader Kim Jong-un in August stopped on Andersen Air Force Base 2017, local protests blazed against the in Guam for two hours in the middle US military, and the government was of the night. Trump made no public swamped by crisis and mismanage- appearances or statements, although ment. All of this took place within he did meet briefly with I Maga'låhen the context of an island preparing to Guåhan, Eddie Baza Calvo, for a elect a new Maga'håga or Maga'låhen photo op aboard his plane (GDP, Guåhan (Governor of Guam). 14 June 2018). North Korean threats to Guam as After two terms and seven years a proxy for the United States have of service, Calvo’s term as governor— become commonplace in recent years. marred by both internal and external However, in August 2017, these problems—was set to end in 2018. In threats reached a new level. Following particular, the Trump Tax Cuts and another round of sanctions instituted Jobs Act of 2017 threatened catastro- by the UN Security Council, North phe for Guam’s finances and caused Korea threatened to turn the Pacific heightened discord between the gover- into “a sea of fire” (NYT, 8 Aug 2017). nor and Guam’s legislature. US President Donald Trump promised The Calvo administration had “fire and fury” in response, escalating sought in early 2017 to borrow the war of words and triggering mas- us$225 million for tax refunds (GDP, sive international news coverage (NYT, 6 March 2017). When I Liheslaturan 8 Aug 2017). Guåhan (Guam Legislature) resisted, The people of Guam expressed Calvo called them into special session. a range of responses to the media, His Bill 1-s passed in session, with including fear but sometimes also seven votes in favor and six against; faith in the United States (NYT, 9 Aug however, rules require that a bill be 2017). They asked the rest of the passed with at least eight votes (GDP, world not to let their home be lost in 23 Jan 2018). Calvo sued the legisla- the global power struggle, as Guam ture and, although the Guam Superior too often appears on the map only Court ruled in his favor, the senators 162 political reviews • micronesia 163 stated that they saw the court ruling as taxes at a time when they were seeking only advisory and did not transmit the votes. bill for the governor’s signature (PDN, A proposed sales tax to create 16 July 2018). a dedicated funding source for the This financial squall soon threat- perennially beleaguered Guam Memo- ened to become a full-fledged typhoon rial Hospital became the focal point with the passage of the Trump of senators’ campaigning. In March administration’s Tax Cuts and Jobs 2018, I Liheslaturan Guåhan passed a Act of 2017. Guam is linked to the six-month, 25 percent increase of the US federal tax structure and assigns grt (Gross Receipts Tax) for business local income taxes based on federal and set 1 October as the start date for rates. The tax cuts led to projections a 2 percent sales tax increase for island of a massive shortfall in Government residents (PDN, 13 March 2018). of Guam (GovGuam) revenues, with Soon after, Senator Mike San estimates ranging from us$100–160 Nicolas, who had declared his candi- million (PDN, 11 July 2018). The dacy for Guam’s nonvoting delegate Calvo administration called on I to the US House of Representatives, Liheslaturan Guåhan to raise taxes as responded to public dissatisfaction by a means of keeping GovGuam from putting forth a bill to repeal the sales falling off a financial cliff. The Demo- tax. On 2 July, I Liheslaturan Guåhan crat-controlled I Liheslaturan Guåhan voted to repeal the sales tax, receiv- followed a different philosophy: Many ing a veto-proof majority. Governor of its members disagreed with Calvo’s Calvo called the repeal “a dark day financial projections, arguing that, for Guam” as the anticipated sales tax rather than raise taxes, outstanding funds were intended to support the taxes should be collected or nones- Guam Department of Education and sential government staff be furloughed the hospital (GDP, 2 July 2018). As of (PDN, 24 July 2018). the writing of this review, the legisla- Despite the immediate fiscal con- ture continued to deliberate over the cerns that lay ahead, I Liheslaturan government budget. Guåhan had difficulty agreeing on While I Liheslaturan Guåhan proposals to increase revenue, due to endured its own politically motivated it being an election year. With more gridlock, much of the island was than half of its current members either consumed by a heated gubernatorial running for higher office or retir- campaign. An enthusiastic yet highly ing, thirty-nine individuals (twenty divided Democratic Party produced Democrats and nineteen Republicans) four contenders. Former four-term filed paperwork seeking election or Senator Lourdes “Lou” Leon Guer- reelection (GDP, 27 June 2018). The rero, the president of her family’s large fierce debates and politicking led to local bank, along with her running I Liheslaturan Guåhan several times mate, longtime party insider Joshua rescinding its own proposals just days Tenorio, campaigned early and vigor- or even hours after having voted them ously, seeking to establish themselves into the budget. Senators seeking elec- as the front-runners and appeal to tion or reelection were loath to raise youth voters. 164 the contemporary pacific • 31:1 (2019) By spring 2018, three more Demo- ment and financial crisis that were cratic teams were challenging “Lou exacerbated in Guam by the Trump and Josh.” The popular Senator tax cuts. Frank Blas Aguon Jr chose former US In July, Guam Memorial Hospital Attorney for Guam and the Northern (gmh), the only public hospital on Marianas and former Guam Attorney Guam, was informed by the Joint General Alicia Garrido Limtiaco as his Commission that it had lost its accred- running mate (GDP, 23 April 2018). itation (GDP, 18 July 2018). The Joint Former Governor Carl Gutierrez chose Commission is a nonprofit organiza- former Chief of Police Fred Bordallo tion that provides accreditation for as his running mate (GDP, 23 April more than 20,000 medical programs 2018). Gutierrez was the governor of and institutions in the United States Guam from 1993 to 2003 and, since alone. leaving office, has unsuccessfully tried gmh was put on deaccreditation three times to be returned to the posi- notice in January 2018; proposals by tion of Maga'låhen Guåhan. its administrators to mollify the Joint The final entry was Senator Den- Commission did not succeed. gmh nis Rodriguez, whose running mate was also under the threat of losing its David Cruz had no history of political certification through the Centers for service but earned a six-figure income Medicare and Medicaid Services in teaching jrotc at a high school (PDN, October 2018, unless a series of cor- 31 May 2018). There was some public rective measures were implemented. outcry regarding Cruz’s government The Calvo administration highlighted employment while running for politi- the need to fully fund the hospital cal office. Rodriguez’s close relation- after it lost accreditation. Members ship with a scandal-plagued former of I Liheslaturan Guåhan, including Calvo loyalist also tarnished his Speaker Cruz, responded by arguing image. By July 2018, Lou Leon Guer- that mismanagement by Calvo appoin- rero and Josh Tenorio were considered tees was the problem, not a lack of the Democratic front-runners. funding (GDP, 18 July 2018). Calvo’s two-term lieutenant While Republican gubernatorial governor, Ray Tenorio, and former candidate Ray Tenorio was largely Senator Tony Ada ran unopposed on untouched by the arguments within the Republican ticket. Their cam- the legislature, he soon had his own paign touted the success of the current controversy. On 7 July, the longtime administration in reducing island lieutenant governor made an appear- unemployment, the timely paying of ance at the Guam bbq Block Party in tax refunds (not common in previous the tourist district of Tumon, where he administrations), completing long- allegedly lifted a weapon from a police standing public works projects, and officer on duty (GDP, 9 July 2018). record-setting tourism numbers. But Tenorio, a former police officer their campaign struggled in the first and trainer, stated that he acted in half of 2018 as the administration his capacity as the overseer of public was rocked with numerous scandals, safety; the governor confirmed that including allegations of mismanage- Tenorio held that role at the time political reviews • micronesia 165 of the incident (pnc, 13 July 2018). federal control. The military’s plans Tenorio said he acted, though infor- to build a firing range on the bluffs mally, to correct a police officer whose above Litekyan would prevent people weapon was not properly secured in from visiting for much of the year its holster, causing potential public and would threaten several endan- danger. He described briefly touching gered native species of animals and and removing the weapon as a “teach- plants.