Sen. Magalei says Senate will not approve budget as it stands

Pago Pago, AMERICAN SAMOA — The Senate is proposing changes to the American Samoa Government’s budget of $693.41 million for the new financial year effective next month.

“We will not allocate the budget for Corrections, Marine Patrol or the Fire Division, as a matter of fact, we will transfer their budgets back to the Department of Public Safety.

“We will also transfer the Emergency Medical Services budget back to the hospital,” said the chair of the Budget and Appropriations Committee, Senator Magalei Logovi’i in an interview with Samoa News over the weekend. 

“This is the only way we will approve the budget. The proposed budget has increased over the previous financial year’s $552.78 million budget — by 25 percent.

The total fiscal year 2023 final budget is capped at $693,415,535 reflecting an increase if $140,630,435 or 25 percent above the fiscal year 2022 aggregate budget of $522,785.

  “The total overall increase is attributed to the significant surge in federal grants due to COVID-19.”

According to the report, local revenue to be collected is $117 million, while grants allocation is 49 % or $341 million; enterprise funding is $223 million and capital improvements amount to $10 million.

For expenditures, $84,543,000 is for salaries; $3.1 million for materials and supplies, while contractual services is $17 million with $891,500 for travel; $11 million allocated under “others” and $586,500 for equipment.

Magalei said the Senate and the House of Representatives will meet on Wednesday to determine this decision, but that is what the Senate will propose.

“The move is bound by law and we will not violate the law given some of the transfers made via Executive Order are illegal,” said Magalei as the joint budget hearings came to an end.

Adding that it’s evident the proposed budget is mainly for personnel.

“There is no funding for developments — then what is the purpose of having government workers when there are no development projects?” asked Magalei.

“It’s like the government is going backwards not forward,” he said.

Magelei, a former director for the Budget Department for many years, says a number of issues have come to light with the government’s proposed budget, whereas some of departments’ budgets have increased significantly including the increase of salaries for directors and deputy directors.

  “We all know these increases are made possible through the COVID funding we have received from the federal government and given these fundings are temporary, when it ends, where will the government get the monies to fund the increases they made?

“We don’t have any new funding sources, so that means the salaries will be rolled back,” said Magalei.

Furthermore the Senator pointed out this is “concerning” for the Senate.

“The government should not be using COVID funding to boost salaries for Government staff, these funds are temporary and will run out,” he said.

As reported earlier, Senator Magalei inquired about the increases of salaries for directors and deputy directors yet it was not included in the previous budget for 2020-2021, but it has now been submitted in the current budget proposed for the new financial year.

Human Resources Director Lynn Pulou-Alaimalo explained the approval came from Governor Lemanu P.S Mauga.

Magalei questioned the governor’s “authority” to approve the increases of salaries not included in the budgets for the departments.

“We only approved increases of directors salaries [to] $75,000 however some directors are getting paid between $80,000 to $85,000 and again who authorized the increased in salaries which was not included in the budget approved by the Fono?” asked Magalei.

  Pulou-Alaimalo replied:, “It was per instructions from the Governor.”

  Adding that deputy directors also received pay raises and are now earning $75,000 — up from $70,000.

  Magalei reminded the director the unbudgeted items including increases of salaries cannot be implemented as it’s “illegal” and that the department should follow the salaries in the budget approved by the legislature.

  He said the Fono should call in the governor’s Chief of Staff to explain the increase in salaries.

SUPPLEMENTAL BUDGET

According to Magalei on Friday Governor Lemanu submitted an administrative request for supplemental appropriations in the amount of $7.4 million to the Fono.

  A letter dated Sept, 15 from the governor to the Fono leaders outlined a supplemental budget from “unbudgeted unobligated and unexpended revenues from FY 2021 budget year.

  Magalei said the supplemental budget would fund positions within the Audit Office.

“The Senate will not consider this supplementary budget to pay salaries. We will not do that. Salaries should be paid from local funding whereas it will continue to the next budget, not from unbudgeted funds.

“I speak from experience,” said the Senator.

He added that when he was budget director, there were salary increases with the DPS using unbudgeted, unobligated and unexpended revenues that was submitted as a supplementary budget.

“After those fundings from the supplemental budget ran out, we rolled back the salaries of the DPS that were increased at that time. We had no choice, because the supplemental funding was finished and there was no other revenue,” Magalei said.