About 8,000 Guam government employees have received notices that their pay will be cut by 10 hours per pay period, and political appointees who make more than 45,000 US dollars a year will face a 10-percent pay cut.
The Pacific Daily News reports that the pay cuts will be in addition to new and higher territorial taxes.
The moves are an attempt by the Camacho administration to stabilise Guam's precarious financial position.
Despite the latest moves to cut expenses and raise revenues, the administration told lawmakers yesterday its 2007 fiscal year budget is still projected to show a 20 million dollar deficit.
The employee pay cuts will not affect autonomous government agencies, including the huge Guam Public School System.
The other autonomous agencies are the University of Guam, the Guam Community College, the Office of the Attorney General, the Office of the Public Auditor and the Mayor's Council of Guam.
