The government of Guam is reportedly now looking at a cash shortfall of about $116 million US dollars -- higher than an estimate announced last month of over 90 million, according to Gov. Eddie Calvo's office.
The shortfall is about $71 million more than the estimate of approximately $45 million by the administration of the former Governor Felix Camacho.
It is due to a host of expenses that weren't budgeted for and adversely affected the government's cash flow.
This includes the federal court mandate to pay about $15.9 million for improvements to mental health services, which started last year and is expected to be paid by May.
Benita Manglona, acting director of the Bureau of Budget and Management Research, told the Guam Pacific Daily Times that the government has to cut its spending as it is living well beyond its means.