BREAKING: The Guam Department of Education (GDOE) is grappling with an unprecedented crisis after losing $27 million in federal education grants, putting nearly $150 million at risk and prompting the resignation of Superintendent Erik Swanson. This financial turmoil has severe implications for students and staff as GDOE prepares for another challenging school year.
Authorities confirm that Chief Brodie Memorial Elementary School permanently closed in May 2025 after serving its community for 65 years. This closure reflects GDOE’s struggle with declining enrollment and resource allocation. Swanson, who began his tenure in July 2023, announced his resignation in June, citing health reasons, but remained in office until December 20 to assist in critical negotiations over federal funding.
In a letter to the Pacific Daily News before leaving, Swanson urged for ongoing support for public education and highlighted the need for collaboration within GDOE. His departure comes amid alarming reports of systemic failures within the organization, including significant lapses in grant management and procurement processes.
The fallout from the funding loss has triggered hiring and travel freezes, legislative hearings, and an urgent call for accountability from local lawmakers. At an April meeting, Senator Vince Borja, chair of the education committee, demanded answers regarding the missed opportunities for infrastructure and student programs due to the lost funds.
Recent testimony revealed that GDOE’s staffing shortages severely hampered procurement efforts, leading to a backlog of obligations and unpaid bills. Deputy Superintendent for Finance Wade Paul stated that the number of procurement staff plummeted from 12 to just five, further complicating financial management.
GDOE’s funding crisis worsened when the U.S. Department of Education imposed a 26% funding cut for fiscal 2025, reducing GDOE’s budget from $35.8 million to $26.48 million. This drop has delayed essential services, including after-school programs and teacher training, affecting around 2,300 employees, of which about 668 are federally funded.
Looking ahead, GDOE faces severe cash flow issues as federal policies now require the department to front costs with local funds before seeking reimbursement under the American Rescue Plan. In November, officials warned that without $54 million in payroll reimbursement, they may not be able to open F.B. Leon Guerrero Middle School or adequately fund key programs.
Despite some recovery efforts, including a recent drawdown of $54 million from ARP funds, significant challenges remain. GDOE’s financial health is precarious, with a projected $38 million to $40 million deficit for fiscal 2026. The ongoing crisis has also prompted GDOE to halt action on a recent management audit after identifying inaccuracies in findings.
The audit revealed that while GDOE achieved full accreditation across all schools, it continues to struggle with procurement delays and inconsistent student outcomes. Academic performance data showed mixed results, with high school English Language Arts proficiency improving slightly but remaining below GDOE’s 80% target for the fifth consecutive year.
As the situation develops, incoming superintendent Judi Won Pat, set to take over in 2026, will face the daunting task of navigating GDOE through its most severe governance crisis in decades. The community is left anxiously awaiting solutions that can reverse the troubling trend affecting their children’s education.
Stay tuned for more updates as this story unfolds.
