Gov prepares for State of Territory address at Fono opening Monday

Pago Pago, AMERICAN SAMOA — The Fono will convene next Monday for the third regular session of the 37th Legislature, and Gov. Lemanu Peleti Palepoi Sialega Mauga will deliver his annual State of the Territory Address during a joint session at the Gov. H. Rex Lee Auditorium.

Under local statute, the sitting governor is mandated to deliver the State of the Territory Address during a joint session of the Fono on the second Monday in January of every year. 

The address usually covers ASG’s financial status, economic conditions as well as accomplishments in the previous year and what’s coming in the future.

Many lawmakers are eager to learn more from the governor on the government’s finances for the past 12 months since the Lemanu Administration took leadership on Jan. 03, 2021. Of interest to some lawmakers, is the “preliminary and unaudited” ASG General Fund revenue report for fiscal year 2021, which shows a shortfall in total revenue collections compared to the approved budget.

While the budgeted revenue for FY 2021 totaled more than $110.16 million, ASG was able to collect just over $104.51 million — causing a shortfall of $5.64 million, and Fono members will be interested in an explanation.

ASG’s largest source of revenue is taxes, and the financial report shows that the biggest shortfall of $3.94 million came from tax collections. ASG budgeted $71 million in taxes but collect just over $67.05 million, the unaudited report states.

The highest drop in tax collection falls under individual taxes, which was budgeted at $27 million but ASG collected $23.23 million — causing a shortfall of more than $3.7 million.

A senior government official says the drop in individual taxes is in line with economic conditions last year during COVID-19 restrictions where employers scaled down their workforce.

On the other hand, the unaudited financial report states that FY 2021 saw an increase in corporate taxes, which was budgeted at $16 million and ASG collected more than $18.49 million.

The Fono and others are looking to see an official statement from the governor on spending by ASG in FY 2021 and whether the government over-spent or under-spent in the last fiscal year.

Another financial issue that lawmakers want to hear about from the governor is overall costs on the repatriation and commercial flights in 2021 — especially the overall cost of repatriation flights from Honolulu.

A news release last month from the COVID-19 Task Force stated that in 2021 there were about 9 repatriation flights and 6 commercial flights costing ASG an estimated $24 million.

And the task force promised in the news release that a more detailed report on the costs of the American Samoa Government’s 2021 COVID-19 travel operations will be ready for submission to the Fono at the Governor’s State of the Territory Address.

Samoa News understands that the governor is expected to speak about the repatriation and commercial flights in 2021 as well as ASG’s plans for continuing commercial flights this year.

The governor is also expected to summarize the administration’s achievements and challenges in 2021 — especially relating to COVID-19 — and future plans, including economic development and financial support from the federal government.

A separate written report by the Lemanu Administration will be submitted to lawmakers, detailing the government’s major accomplishments and challenges. Last September, cabinet members were informed by then Acting Gov. Talauega Eleasalo Ale to submitted a comprehensive Accomplishment Report detailing all major accomplishments for the Fiscal Year 2021, including all pending projects and agenda for the coming year.

The accomplishment report — which was due last November, was also to include program or project challenges, if any, currently being faced and solutions being planned to mitigate those issues.

And it’s during the governor’s address that the administration shares pending proposed legislation for submission to the Fono.

A handful of lawmakers told Samoa News that they are interested in getting a detailed and updated report on federal COVID-19 funds awarded to American Samoa, and how funds have been spent and the status of projects for which these funds were earmarked.

And this is especially important for the more than $100 million that the territory received under the American Rescue Plan Act (ARPA) — about which lawmakers held committee hearings in August, but the Fono now wants to get new updates from the Administration, especially ASG’s ARPA Oversight Office.