Some quick answers to some quick questions from one of our readers about the One-Hour-Reduction that starts today with the American Samoa Government.

A reader asked:

Quick questions I wanted to ask since this one hour cut in working hours per day got me thinking things...

1. Is the Fono exempt from the cut in working hours? (if they are what's the justification there?)

Ans: According to the Fono leaders, the lawmakers are exempt from the cut, because their salaries are set by statute, hence they are paid according to “law”. Fono employees are not a part of this law, so they are included in the reduction.

When Senators discussed the hour reduction last week, some senators suggested participating voluntarily to show support for the government’s plight, and senators approved a verbal motion, for the Senate president to discuss the issue with the House Speaker. At the time, the Senate president did make it clear that the approved verbal motion does not involve anything relating to cutting hours for lawmakers.

Gov. Lolo M. Moliga has also said that the executive branch cannot mandate other branches of government (Fono and Judicial) wages and hours — so it’s up to them to participate or not.

2. When did everyone find out about the cuts? (Weren't we supposed to be given 30 days notice or something like that, and if so did I miss the notice?)

Ans. An emergency cabinet meeting was called last week Wednesday, where the governor announced ASG’s move to reduce the hours, effective Monday, April 10, 2017 — that’s 3-days notice, 5-days if you count the weekend.

The issue of how many days should be given as Notice for such an administrative mandate did not come up in the government’s discussion.

It would be a matter to be asked of the Department of Human Resources, with a call probably also to the federal Labor Department representative on island to see if the government needs to provide notice of the hour reduction before doing it.

Samoa News also wondered about contract workers being affected, as their contract would dictate their compensation and employment terms, and would be subject to contractual law — it’s probably a matter for the lawyers.

3. Why are these cuts being done again? (I missed that part.)

ANS. Gov. Lolo M. Moliga said in his announcement, “Our financial situation mandates we take these steps now in order to be able to ensure we are able to continue the effective delivery of government services to the public for the remainder of the year, while at the same time sustaining employment at its current level rather than taking paychecks away from households.”

Two weeks ago during the governor’s usual cabinet meeting, Lolo told directors that based on financial information from Treasury and the Budget Office the government will face a $16 million deficit, if spending is not curbed. Lolo then ordered that no director should travel off island paid for by the government and no overtime would be approved.

He also said that 65% to 70% of the government’s budget is funded by federal grants.

According to the governor’s FY 2017 budget submission, the total ASG workforce is 6,603 — including the semi autonomous agencies.

ASG’s biweekly payroll — not including the authorities — averages nearly $4 million, according to ASG officials’ testimonies last year in the Fono.

Preliminary FY 2016 figures for payroll gives a total of $64.61 million for the entire fiscal year 2016.

It looks like the government is trying to reduce its payroll, before it has to lay people off, but nothing has been discussed about this being another avenue of cost cutting by the government.

5. Are our local federally funded agencies and departments going through the same cuts?

ANS. Hard to say, although it should be noted that teachers and other in-school personnel that are not a part of the hour reduction, many are paid through the Consolidated Grant from the federal government, and as such are subject to federal mandates. Also, of note, public high schools are currently going through accreditation, which means staffing is crucial.

For doctors and nurses there are Medicare & Medicaid requirements that must be met, including minimum staffing, for the hospital to continue to receive federal funding from these agencies.

Whether other agencies, such as the EPA, TEO, TAOA — they are all 100% federally funded — are affected is unknown.

7. Are the cuts legal or illegal, is there a law that states one or the other in the American Samoa Constitution or any law book for our islands in that matter?

Ans. It may be legal in some cases, but not in others. Employees should probably call the DHR, or the DOL representative on island; and if all else fails — a lawyer to look into employment-compensation regulations, if you think you should not be included in the cut.

Also remember, the last time hours were reduced for government workers — 6 years ago — was during the previous administration, when then Governor Togiola Tulafono implemented a reduction in work hours for all American Samoa Government (ASG) employees paid for by local revenue, hoping to save $3million. They stopped the reduction a few months later, returning to regular working hours.

Right now, the government is estimating it will be saving per payroll — there are 8 left in the 3rd quarter, and “if Fono and Judiciary join in,” about $239,688, which would amount to around $3million by June 30.

8. What's our Representative in Congress's answer on these cuts and will we be seeing any help from Washington in keeping them short or non-existent? (I think I read somewhere that Washington is the whole reason we are making these cuts... so what now?)

Ans. There has been no word yet from the Congresswoman Aumua Amata’s office on the issue. And yes, Lolo said one of the “two principle difficulties” impacting the government’s cash flow is the slow down of grant funded revenue streams as a result of the change of administration in Washington D.C.

It should also be noted that ASG has problems with reports done in a timely manner in order for federal funds to be drawn down and the local government reimbursed. For example, TAOA is currently still at risk due to this problem.

At this point, it looks like it’s a matter of waiting for Washington D.C. to ‘act’.

9. If we are looking for ways to generate revenue, are we so conservative as to not look at other quick solutions such as legalization of cannabis and hemp products as a revenue generator since it appears our leaders are desperate enough to cut working hours and money out of our checks? (I'm not saying it's the best answer, I'm just saying from my end it's a better long term alternative then having my earnings shortened?)

Tell me what can I do or who can I call to keep these cuts short and to get American Samoa's money up seeing as again the whole issue is GENERATING REVENUE?

I'm looking for solutions that I can apply on my end... anyone up to talk business and move things forward?

Ans. What about a Lotto for our education department and hospital (not casino)? Become a Duty-Free port once again? Taxing ‘alofas’ to our faifeau and matai — wages, you know? Keep our remaining cannery: Don’t charge canneries to scan their containers? Give StarKist a fair land lease for their new freezer? Keep our fisheries industry healthy: Help our longliners, treat them like an industry, a dock… fishing grounds? Make it law that faalavelave donations cannot be more than $20- $50 per person or matafale, if cash is required?

There’s no one solution, just a lot of ingredients to be put together for a healthy economy.