Pago Pago, AMERICAN SAMOA — At opening of the 4th Regular Session of the 37th Legislature, Gov Lemanu Peleti Mauga says a $10 million surplus has been recorded for the current fiscal year.

 “Preliminary revenues collected as of June 2022 reflects $92,404,365.43 with our expenditures at $78,076,072.03 respectively,” said the Governor during his opening remarks at the session.

Lemanu says the challenges faced by the territory and the commitment displayed in the past 6 months, for the betterment of our community, has been inspiring.

He also highlighted the outcome of the COVID-19 Task Force in response to the first COVID-19 community spread, to ensure continuity of government operations, protecting the community and safeguarding the local economy through various forms of small business assistance.

 “Financial outlook for our fiscal year 2021 Audit is complete and I am pleased to announce that the General Fund reported a cumulative net fund balance of $25.5 million, an increase from the previous year due to a surplus of $7.4 million.

 “ASG has recorded a year-end surplus in the General Fund for the last eight years.

In addition, for a second year in a row ASG received an unmodified opinion in its single audit and financial statement, according to the governor.

The unfunded liability of the retirement had been a grave concern over the last several years, he said.

This past year, the “liability” has decreased by more than 3%, as noted in the retirement financials. The recent legislation passed by our Fono leaders and signed into law, Public Law 37-10 increasing contributions over the next 2-3 years will further greatly improve the funded status of the pension fund.”

The governor acknowledged the assistance of the Fono leaders for the efforts in advancing the improvement of the pension fund.

 “The administration continues to adhere to its budgetary compliance.

 “Our finances remain on track as forecasted and preliminary financials for Fiscal Year 2022 Third Quarter indicate that we are tracking to meet our forecasted revenue collections and maintain our quarterly budgeted expenditures.”

He said the revenues collected have also surpassed the budgeted 3^rd-quarter forecasts by over $10 million and that processes have been established to review and analyze the integrity of revenue collections and will adjust accordingly in the final quarter to ensure we are compliant.

Furthermore he pointed to the Compliance Review Committee (CRC) established to review all actions, provide recommendations and implement programs consistent with the goals and priorities.

 “They were tasked to review existing projects, funds and provide recommendations on sustainability after COVID federal funds have depleted, for inflation, economic downturn and/or any recession.

 “Our U.S. Treasury Office of Inspector General (OIG) Audit of the CRF Cares Funds is ongoing, and we continue to provide the required responses as queries are received from the federal government.

These actions and other compliance measures such as clean audits reflecting good stewards of public funds, revenue collection integrity and budgetary compliance remain a priority, he reported.

The top priorities of the budget focuses on strengthening critical services needed to support the government operations and improve the quality of life for people with an emphasis on education, healthcare, public safety, economic development, youth capacity development, senior citizens, quality of life improvement, critical environmental threats with the dangers of climate change, rising sea levels and our eroding roads and seawalls, and last but the not the least, our social services.

 “The four main components in the Budget Plan consist of federal grants, enterprise, capital improvements and local funding.

 “The total fiscal year final budget proposal is capped at $693.41 million, reflecting an increase of 25% the prior fiscal year. The overall total increase is attributed to the significant surge in federal grants due to COVID-19.

The American Samoa Government is responsible for the financing of approximately 49% of its planned expenditures with local funds while our federal grants will absorb 51.1%, the remaining budget.

The projection is a conservative estimate consistent with the expected revenue trends. The total projected local revenues are estimated at $117,876,500, a 7% increase from prior year, however, I am optimistic with the forecasts as noted in the surge in taxes, license and permits, 2 charges for services and other miscellaneous revenue sources.”

Adding that increased compliance and tax audits, collections, lease agreements, increased business activity due to the current and anticipated continuity centered around COVID-19 projects to include the re-opening of our borders will provide a solid local revenue base.

 “The increased funding supports the government wages compensation that has provided economic stimulus in more income to help our community to ease the burden of cost-of-living increases to meet their basic needs.”

Furthermore, the increase supports improvement projects to shore and mitigate our critical situation with the continued erosion along our roads and seawalls to alleviate the dangers of the rising sea levels.

 “Global economies including the United States create uncertainty over future economic prospects, some of which are beyond our control as these are federal mandates and policies. Risks still remain with the cannery operation such as the minimum wage increase, 30(a) tax exemption status, environmental enforcements which shrink fishing markets.

“Despite all these challenges, the cannery operations have requested for additional guest workers to support their production quota.

 “The administration is implementing a framework to expand our economic pillars in technology and explore aggressive efforts to establish labor industries to provide employment opportunities for our people.”

Also the American Samoa economy will continue to be supported by a strong pool of federal funds, which will sustain economic growth.

 “Our responsibility to safeguard the alignment of our service priorities to the projected revenues stream is a cornerstone of our administration’s accountability. The proposed budget plan is presented as a guiding tool to map a successful pathway in the upcoming fiscal year. The leaders of the departments will be prepared to provide the required information as needed during the upcoming budget hearings.”

Held at the Lee Auditorium, the opening was led by Senate President, Tuaolo Manaia Fruean, with invocation by Reverend Dr Moreli Niuatoa, hymns were sung by the Kanana Fou Theological Seminary.