On July 30, the Service Compensation Representatives for each of the uniformed services voted to approve a two-point increase to the Cost of Overseas Living Allowance (COLA) index for the island of Guam from 116 to 118. This COLA increase will be effective in the pay system on Aug. 16, and will be applicable to service members' pay in the subsequent pay period.

Cmdr. Jason Meyers, Marianas Islands Range Complex operations deputy director of Joint Region Marianas, said he sees prices continuing to rise and the money will help him, his wife and five kids with growing cost.

“COLA helps military families to deal with the fact that it costs more to purchase goods and services on Guam than on the mainland,” said Meyers. “I don't see prices decreasing - if anything they are increasing and our COLA needs to keep up with that.”

Guam is primarily a tourism-based economy that has higher prices on most name brand goods, which could discourage service members from shopping outside the bases when prices rise.

“With the increase of COLA it may help to stimulate the local economy as service members might be more likely to shop off base more frequently than on base as it won't be as much of a financial burden,” said United States Marine Corps 1stLt Brett E. Lazaroff, communication strategy & operations officer, Marine Corps Activity Guam. “Personally, I tend to eat out a lot, and the increase in COLA will likely be spent on trying new restaurants out in town.”

Food and services are not the only costs that are increasing and Meyers has advice for newly stationed service members in Guam.

“The roads here accelerate the wear and tear on your vehicle,” said Meyers. “Repairs need to happen often and are not cheap. Take the opportunity to set some of this extra money aside to deal with those bills when they roll in. After last year's dramatic COLA decrease it's good to see that they are raising the rates somewhat again.”

For more information on COLA, visit www.defensetravel.dod.mil/site/cola.cfm

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