Fono takes steps to try and prevent another ‘$36 million’ expenditure without Fono approval
Pago Pago, AMERICAN SAMOA — The Fiscal Year 2025 Budget bill totaling $733,683,167 million was introduced in the Senate yesterday as the Fono reconvened in both chambers — Senate and House — after the four-week break it took from its 4th regular session of the 38th Legislature.
Local Revenues total $165.9 million, Capital Improvement Projects amount to $10.6 million, Special Federal Grants total $282.6 million and Enterprise Funds amount to $274.4 million.
In light of the controversial spending by the government of $36 million in the FY2024, the Fono is taking steps to ensure more accountability and transparency in government spending by including specific requirements in the budget bill to prevent similar issues in the future.
Section 2 of the Budget bill states, "In the event that the American Samoa Government or any agency thereof, received during Fiscal Year 2025 revenue from any source not included in the source of projected revenue identified in this act to which exceed the projection of any revenue source identified therein, such revenue shall be deemed unbudgeted revenue.
"It shall be deposited into the general fund and be available for immediate appropriation by the Legislature without waiting for the end of the fiscal year."
"Unbudgeted revenue received during Fiscal Year 2025 shall not be expended for any purpose unless first authorized and appropriated by the Legislature. The Governor shall notify the Legislature promptly upon receipt of unbudgeted revenue."
Section 3 highlights a budget deficit, stating that "if the government's financial and budget officers determine that actual revenue will fall short of the projected revenue projected by this act by greater than two percent for the fiscal year, the Governor shall immediately notify the Legislature.
"He shall then submit proposed agency program plan changes, reprogramming legislation or supplemental appropriation to adjust to the deficit. Proposed changes or reprogramming shall detail the reduction in expenditures required to assure that actual revenues equal actual expenditures.
Section 4 identifies Lapses stating that "all revenue appropriated by this act that has not been expended, obligated for expenditure, or otherwise carried forward to future fiscal years by the close of Fiscal Year 2025 reverts to the General Fund and may not be expended until further appropriation by the Legislature."
The Budget hearings on ASG's proposed Fiscal Year 2025 Budget begin on Monday, August 19th, and will continue until August 28th.
According to the hearing schedule put together by the chairmen of the Senate and House Budget Appropriations Committees, Senator Utu Sila Poasa and Representative Vailoata Amituanai, the hearings begin next Monday with the Budget Office and Treasury Department.
In a letter to the Fono leaders last week, Governor Lemanu P.S. Mauga stated that he has placed travel restrictions on all cabinet members during this session of the Fono to facilitate their participation in the budget hearings.
However, Governor Lemanu requested that Cabinet members be excused from Fono hearings today, August 13th as there were urgent issues that he needed to discuss with his Cabinet.