CJ states judiciary's budget is dictated by what is needs to function

Pago Pago, AMERICAN SAMOA — Chief Justice Lealaialoa Michael Kruse has reminded the Budget Office of the separation of powers, which include budget cuts originating from the Executive Branch, in a letter dated May 19, 2025, addressed to the Acting Budget Director Satia Aokuso Satia. 

Chief Justice Lealaialoa said the High Court, like the Fono, is not a government department amenable to executive influence, just as the judiciary has no influence whatsoever on the executive branch's perennial history of fiscal shortcomings. 

The CJ was responding to the Acting Director’s budget call for the Fiscal Year 2026 budget for the American Samoa Government’s revenue projections, amounting to $135 million, a significant 23% reduction compared to the previous financial year's budget of $165.9 million. 

He noted receipt of the Budget Call memo, with serial number 2025– 230, dated May 15, instructing the judicial branch to comply with the stipulated fiscal year ceiling figure of $3.29 million. 

In response, the CJ points out, “Please be advised that the judiciary's budget is, as it has always been in the past, dictated by its capacity needs to function.

“It is then left up to the fono to determine the judiciary's allocation and not the budget office. 

“The High Court, like the Fono, is not a government department amenable to executive influence, just as the judiciary has no influence whatsoever on the executive branch's perennial history of fiscal shortcomings. 

“So please be also advised that if you change or final my numbers for fono review as page two of your memo suggests, you do so at your own peril,” said the Chief Justice. 

Copies of the CJ’s letter were sent to Governor Pulaalii N. Pula, Senate President Tuaolo Manaia Fruean, Speaker of the House Savali Talavou Ale, and the Court’s Administration Enere  Seumanutafa.

BUDGET CALL — FISCAL YEAR 2026

The Office of Program Planning and Budget Budget Call, dated May 15, 2025, on the proposed FY 2026 ASG budget calls for a “reset of the budget for FY2026 by closing the the existing FY2025 budget gap.”

As such, Acting Budget Director Satia has set the budget ceiling “at approximately $135 million or 23% less than FY2025 budget,” which was $165.9 million and this is in keeping with “the governor’s decision to contain spending to what we actually collect.”

He points out, “Given how scarce and limited our resources are, we must contend that we simply have to live within our means.”

 According to Satia, current revenue streams show a normalcy trend, approximating pre-pandemic levels. However, while revenue collections are adequate to cover fundamental operating expenses, they fall short of fulfilling other significant obligations, including the $11 million due for retirement contributions as well as outstanding payments owed to contractors and vendors.

“So, the intent is to set the new budget conservatively whereby there is a high degree of generating an excess. Hopefully, this will provide some flexibility and capacity to improve our cash flow.”

In his communication, Satia noted that “this process will necessitate carefully reevaluating government services to streamline operations and boost efficiency… It is recognized that strategic resource allocation is vital, and as funding permits, they aspire to tackle other critical areas that have been underfunded.”

In light of these developments, the Acting Director instructed all departments and agencies to craft their budget proposals for FY2026 in alignment with the newly established spending ceiling, and to have the proposals submitted to the Budget Office no later than Friday, May 30, 2025.

“Upon receipt of your budget proposals and upon request, we will provide a schedule for those who may choose to present their proposed plan to justify their operational needs.

“Otherwise, we will final your budget based on your submission.

“Also, your budget must be consistent with your organizational chart.”

The Budget Call asks that fringe benefits and fixed costs for FICA and Workmen’s Compensation, with 14% of government contribution to the retirement fund, as well as utilities, communication, rents, and leases be incorporated into the department’s budget.

For Federal Grants, it calls for the current grant award(s) to be included in the budget submission. However, it asks that “ARPA related grant awards Not be included in your FY2026 proposed submission.” Instead, they are to be submitted separately, and “in your possession should related questions arise from the Legislature.”

For Enterprise Funds, their profit & loss statements "must be included for the most recent three years,” with their proposed budget.

For Authorities, they are to prepare their proposed budget plan for direct submission to the Legislature and to the Budget Office to be included in the main Budget proposal. An important point is added: “Subsidized appropriations can only amount to what government can afford.”

Finally, it reminds all departments/ agencies that “all data and information to measure the outcome results based on the financial resources provided given the services performed by your Department/ Agency... This critical information is needed to quantify and justify whether benefits provided have been maximized relative to your budget proposal.”

Satia concludes that he hopes “this year will bring the best in all of use as together, we navigate this budget process with discipline, commitment, and a sense of curiosity.”

The Budget Call is officially approved by Gov. Pulaali’i.