Joint Budget Hearings open

Pago Pago, AMERICAN SAMOA — American Samoa’s Annual Budget Hearings- 2024 once again bring local Senators and Faipule together for a seven-day deliberation starting this week Monday, Aug. 28, at the fale Samoa senators currently use as their chambers, in Fagatogo.

House of Representatives Standing Committees Chair, Vailoaata E. Amituanai of the Budget and Appropriation Committee along with his Co-Chair Senator Utu Sila Poasa looked at the government’s proposed budget for Fiscal Year (FY) 2024 that is $664 million plus.

Acting Treasurer Levi Reese, Chief of Staff Loa Tuimavave Tauapai laupola, and Program & Planning & Budget Director Catherine D Saelua appeared as administration witnesses during the first joint budget hearing.

Program & Planning & Budget Director Catherine D Saelua submitted a reduction of 5% of the FY Budget 2023 by $700 million making the current proposed budget $35 million less.

She identified four sources of funding for the proposed FY 2024 budget: Local Revenues of $143 million; Special Grants from the US of $275.3 million; Enterprise Funds of $263.3 million; and, Capital Improvement Project Funds of $10.2 million plus.

According to Saelua, breakdown of the funding using Local Revenues of $143 million, which includes the Governor’s Office and other gov’t departments at $103.4 million; the Legislative Branch for $10.1 million, the Judiciary Branch at $3.8 million, and Special Programs for $25.5 million.

She also reported that the 2024 Budget is based on the government’s annual revenues and with recommendations to the Governor, and that they also work together with the Treasury that provides the revenue figures which her department uses.

Senator Utu told two of the witnesses that there are surpluses every year, and it appears either one of them — acting Treasurer and Budget director — is holding up funds instead of their being used by the individual departments.

“At the same time they are trying to balance up the annual budget every year.

“Whereas the given funds should be used up, instead of a surplus, year after year, with a supplemental, and the way this budget is going,” Senator Utu predicted — “if not 2025, 2026 the budget would be $200 million.

“Try using the budgeted funds, as when surplus goes up, so as revenue, and where are we going to stop?” 

Saelua responded that her office isn’t holding up funds, they appropriate it, together with Treasury, based on the available funds.

“As a matter of fact, our government's first responsibility is to ensure Payroll is secured.

“There are several requests coming in from the departments, and are being attended to, following what’s on the budget,” she explained.

House Speaker Talavou Ale, in support of Senator Utu, said he is all for a transparent budget but he is concerned about having a big one that may not be approved.

He was referring to the reported corporate taxes as of June 2023, which was budgeted for $29 million, while it only reached $18 million. He suggested to budget it appropriately, in accordance to the given amount.

The House Speaker also queried the annual allocation from the Department of Interior (DOI), which started from $23 million.

Saelua explained that $21.5Mil is the amount from the DOI, to help departments like Education, Board of Administration, Public Safety, Public Works, Legal Affairs and the High Court. And, there is also money set aside for the LBJ Hospital and Board of Higher Education amounting to $21.5Mil.

The Budget hearings continue this week.