Senate says more details of funding source for gov’t pay raises needed

Pago Pago, AMERICAN SAMOA — Without solid financial information on how much money will be spent on the government’s salary increases — that were effective July 1st and implemented by the Lemanu Administration — the Senate is seeking a complete financial report on this issue, with many lawmakers, in both the House and Senate, arguing that it remains unclear and the info should have been presented to the Fono for approval.

The request followed a suggestion by Sen. Magalei Logovi’i during yesterday’s Senate session saying that the Fono is near the end of its review of the fiscal year 2022 budget, set for Aug. 10th, but the government’s salary increases are causing more questions than answers, especially in the Senate, and the questions deal with the funding source.

The Tualauta senator suggested that the Senate leadership request the ASG Budget Office for specific details of how much was spent on the pay hike and the total amount — since July 1st, when the pay hikes went into effect, through to the end of September (which is the end of FY 2021).

And to be included in the financial report is the funding source — with a break down of local revenues and federal grants.

Magalei points out that the Fono didn’t approve spending of any money in FY 2021 for any salary increases. And if funds were used from each department and offices — based on the approved FY 2021 budgets — the correct action to have been taken first was for the Administration to submit a legislation to “reprogram” funds, which the Fono can then approve for the use of approved FY 2021 money.

He reiterated that there needs to be a clearer picture on the status of local revenues used for pay increases, as it was not approved by the Legislature.

He said it’s pertinent that the Fono has a clear understanding of this specific spending — “not approved by the Fono” — before lawmakers make a final decision on the FY 2022 budget.

Other senators agreed with Senate President Tuaolo Manaia Fruean, when he said the request will be sent to the Budget Office and ASG Treasury. He said the Fono should have a complete understanding on this issue.

Also raised during the session is what the Fono will do with budgets for executive branch offices and agencies whose directors weren’t confirmed by the Fono, to which Tuaolo responded that it’s an issue for discussion by the full Fono Joint Budget Committee

Both the Senate and House have raised the issues in the past days and even earlier in budget hearings and in their own respective chambers.

When the joint budget committee hearing started yesterday morning, Sen. Utu Sila Poasa, chair of the Senate Budget and Appropriations Committee, posed the issue to lawmakers.

Tuaolo suggested for the Fono’s review to continue and be taken up towards the end before hearings are completed. And the committee, in consensus — agreed.

Six offices and agencies were on the schedule Thursday for their budget hearings and the schedule was clearly marked noting the agencies with “Non-confirmed department heads”.