HAGÅTÑA, Guam — Governor Lou Leon Guerrero says stabilizing Guam’s finances stands as the cornerstone achievement of her historic tenure as the island’s first female governor, crediting fiscal discipline and strategic pandemic management for transforming an $83 million deficit into consecutive years of budget surpluses.
In an exclusive interview with NMI News Service in her office, Leon Guerrero reflected on her administration’s approach to unprecedented challenges and what her leadership might mean for future generations of women in the Pacific.
“If we don’t have the money, we can’t provide the service,” Leon Guerrero said. “If we don’t have the money, government cannot be that safety net for our people.”
The governor, now in her second term, inherited the substantial deficit when she took office. Within two and a half years, amid a pandemic that devastated tourism, her administration eliminated the shortfall through what she described as strict fiscal discipline, aggressive revenue collection and strategic use of federal grants.
Central to that financial recovery was a controversial decision to keep the construction industry operating during COVID-19 lockdowns while closing other businesses.
“Construction workers really don’t interact with the public,” Leon Guerrero explained, noting her nursing background informed her risk-based approach. “They come to work, they do their work, then they go home.”
That decision allowed Guam to continue capturing tax revenues from billions of dollars in federal defense spending flowing to the island, even as tourism revenues collapsed to near zero.
The administration has maintained budget surpluses for the past four to five fiscal years, Leon Guerrero said. Rather than banking those funds, the government reinvested approximately $150 million in private sector subsidies, electric power assistance, child care support and government modernization efforts.
“We pushed all that money back out into the community,” she said.
Leon Guerrero defended her pandemic response against criticism, saying modeling data warned that inaction could cost 3,000 lives, matching Guam’s death toll from World War II.
“I vowed to myself as governor that I will not let that happen,” she said.
Her administration implemented mandatory quarantines for arriving travelers at government expense, closely following guidance from the White House Coronavirus Task Force led by Dr. Anthony Fauci. Quarantine periods adjusted from 14 days to seven to five as scientific understanding evolved.
Guam achieved a 92% vaccination rate, among the highest in the nation, before Leon Guerrero lifted pandemic restrictions.
The governor acknowledged that restaurant closures upset the private sector but noted many establishments pivoted to takeout models that proved profitable due to reduced operational costs.
“They tell me they made a lot of money during that because their operations decreased expenses,” she said.
Leon Guerrero, who previously served as CEO of Bank of Guam and as a senator, said her decision to run for governor stemmed from a desire to improve healthcare, education and economic prosperity for Guam’s people.
“I wanted to help our people,” she said, crediting her experiences in nursing, banking and the legislature for preparing her to lead.
The governor thanked Guam residents for their confidence in her leadership through what she called unexpected challenges, including not only the pandemic but also significant storm damage.
Editor’s Note: This is the second in a series of stories from NMI News Service’s exclusive interview with Governor Lourdes Leon Guerrero conducted in her office in Hagåtña. Additional coverage will address the governor’s reflections on the ongoing hospital relocation debate, and her perspective on decolonization and self-determination issues.
