Treasurer details collections and expenses at Joint Budget Hearing

Pago Pago, AMERICAN SAMOA — As of July 30, 2022 the unaudited Government revenue collections stood at $110 million from October 2021, Treasurer Malemo Tausaga said during the joint budget hearing of the Senate and House of Representatives, while the preliminary report on expenses shows $94 million already spent.

He added there is a supplementary budget of $12 million, of which $9 million has been spent.

Malemo was responding to questions posed by the Senate Chairman of the Budget and Appropriations Committee, Magalei Logovi’i about the increase in the proposed budget for the upcoming financial year 2023.

Magalei pointed out the local budget for the previous financial year was $110 million while the current financial year budget has increased to $117 million — yet there are no new revenue measures.

He also questioned a recent report as of June 30, 2022 that states the Government is in the red to the amount of $17 million, however there was a clarification.

Magalei pointed out the summary of the proposed budget outlines collections from the previous years — under corporate taxes for 2020, the Government collected $13 million; in 2021 it was $16.1 million, and in 2022 it was projected to be $18.5 million.

Individual taxes increased to $27 million in 2021 and looking at the projections for 2022 the collection will be $72 million and in 2023 $77 million with no new revenue measures approved by the Legislature, said Magalei.

Furthermore the Senator said the projections are increasing and the concern is, there are no new revenue measures, reminding Malemo and Budget Director Katherine Dora Saelua that this will fall back on them and their projections.

He added the fact that the 2 percent wage tax was repealed recently and was replaced was a 3 percent revenue measure to assist with the General fund.

Magalei said the projections have increased and that calls for concerns as there are no new revenue measures.

“In any case if something happens in the future, just remember these were the concerns raised by the Legislature, but if the both of you are confident with the projections then we will leave it at that,” said Magalei.

Malemo in response explained the tax office is keen on collecting taxes owed to the Government — not only individuals but also businesses.

 “There are successful businesses that still owe the Government taxes. There are more than 3,000 and most of the businesses are not paying taxes,” Malemo reiterated.

The Customs Division of the Department of Treasury has also been told to enforce customs collections to increase Government revenue.

PROPOSED BUDGET FOR NEW FINANCIAL YEAR

The proposed budget for the new financial year shows a $693.41 million budget for financial year 2023 with $84.54 million allocated for salaries, with an increase from the previous financial year’s $552.78 million budget — by 25 percent.

According to Governor Lemanu Peleti Mauga’s executive summary of the budget submitted to the Legislature, contractual services amount to $15.73 million.

Under all others is the subsidy of $2 million to the hospital, $1 million to the Board of Higher Education; and $150,000 to the former Governors’ allowances and $700,000 for the EOB maintenance.

There’s also $3 million to the Medicaid office.

Other subsidies according to the proposed budget is $1 million to the Airport General Fund; TAOA $100,000; Sports Complex $300,000; DAS Housing $350,000; road maintenance, $1 million; farm and fishing $100,000 each; print shop also $100,000 and $150,00 for the shipyard.

A total of $400,000 has been allocated for ceremonial activities and $300,000 for the Governor’s contingency fund.

Also $450,000 has been allocated for the Golf Course House Renovation; $200,000 for the Pago Harbor Cleanup; $1.4 million for the insurance premiums.

In other aspect of the report for financial year 2023,  planned expenditures has an increase in the proposed budget for the Department of Education. Last year’s approved budget was $82.28 million, with the proposed budget for 2023 set at $88.4 million with $66.87 million from grants.

For the Department of Health, last year’s budget was $21.67 million and the proposed budget is $32.42 million.

However the budget indicates a decrease in the budget for Human and Social Services Department.

Last year’s budget was $95.11 million yet the proposed budget is only $30.83 million. The approved budget for the Medicaid State Agency from last year was $1.94 million with a heft proposed budget for FY 2023 is $86.21 million.

For the Department of Commerce proposed budget is $11.13 million yet last year’s budget was $7 million.

For the Department of Public Work’s previous budget was $7.83 million and new proposed budget is $8.2 million.

The Legislature’s expenditure budget approved last year was $8.11 million but proposed budget increases to $9.11 million.

As reported earlier, Governor Lemanu Peleti Mauga said there are four main funding components in the budget plan that consists of federal grants, enterprise, capital movements and local funding.

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 total 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 allocated 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 and $891,500 for travel; $11 million allocated under “others” and $586,500 for equipment.