Pago Pago, AMERICAN SAMOA — Members of the House of Representatives and Senate failed to reach an agreement on the proposed Fiscal Year 2025 Budget on Tuesday morning, and deliberations by the Joint Budget and Appropriations Committee ended with a postponement for yesterday.

However, the review was once again postponed Wednesday after senators waited for about half an hour, with no sign of members of the House of Representatives arriving for the Joint Budget & Appropriations Committee review of the FY2025 budget.  

On Tuesday, Senator Magalei Logovii who took over as co-chairman after Senator Utu Sila Poasa traveled off-island last week, stood firm in his belief that the government would not be able to raise the projected local revenues of $165.9 million in the FY2025 budget.

Magalei said that the reality is that the government will not be able to collect the projected amount.

Speaking from his experience as a former Treasurer, he warned that based on the collections for the current and past two fiscal years, the average amount that would be collected based on numbers from Treasury is $128,500, while the maximum amount that the government would be able to collect would be about $136 million.

The former Treasurer pointed out that the Executive branch had increased the local revenue amount for Fiscal Year 2024 because of the supplemental appropriations for Fiscal Year 2023, when in fact, it will not reach the amount projected in the budget.

He pointed out that there were no revenue measures approved to raise new money for the government. He said outright that the administration increased the budget to match expenditures for things that it wanted, but the budget was unrealistic.

Magalei proposed that they cut the Special Programs budget which was over $25 million to just $11 million.

He remarked that it has become clear the government is falling short of its local revenue projections for the current fiscal year.

He pointed out several issues, such as the government’s inability to provide budgeted subsidies to the college, delays in issuing tax refund checks to some individuals, and businesses experiencing months-long delays in receiving payments.

Senator Togiola Tulafono and House Speaker Savali Talavou Ale however did not agree with his view. They argued that for the past three fiscal years, the government had collected more revenues than the amounts projected, which was why supplemental appropriations were approved.

Togiola also pointed out that the Fono had failed in its oversight role because it does not monitor the government's financial performance reports.

The House Speaker proposed that they increase the funding for the American Samoa Community College referring to the testimony of the college president that ASCC had mounting debts.

Togiola however said the college subsidy for the new fiscal year is more than $5 million which he said should be enough and if they need more funding they can make a request next year.

Senator Magalei reminded Togiola of the local revenue shortage during his tenure. Magalei recalled informing then-Governor Togiola that the general fund account was depleted and advised him to reduce the working hours of all government employees.

He said from the look of things, the government is going through the same problems.

“Why are there still so many people who haven’t received their tax refunds?” he asked. “And why are numerous companies complaining about not receiving payments for services rendered? I know what's happening because I have worked at Treasury and the Budget Office for many years.

“The Budget Office has increased the budget to cover administrative expenditures, but there are no funds to support it!” he stated bluntly.

The House Speaker voiced disappointment with Senator Magalei’s remarks and said statements should not be made only to please those listening but to consider what is best for the government.

After Senator Togiola moved to approve the budget as submitted, Senate President Tuaolo Manaia Fruean questioned the purpose of their budget hearings and witness questioning.

Tuaolo then proposed that they review and discuss each budget item individually to identify desired changes.

For now, Senator Togiola proposed setting aside the Special Programs budget and approving the rest of the funding request for ASG. He noted that the Special Programs budget is the only source they can use to make the desired changes.

House Vice Speaker Fetui Fetu emphasized that there was clear evidence of abuse and excessive spending, urging the Fono to take immediate action. He stressed that now is the opportune moment for the Fono to address the deficiencies in the budget proposal, warning that failure to act would not go unnoticed by the public.

Realizing that the discussion was unlikely to reach a consensus, Senate President Tuaolo recommended postponing the deliberations until Wednesday (yesterday).

During their deliberations yesterday morning, the Senate Budget & Appropriations Committee chaired by Vice Chairman Magalei Logovii, senators only, unanimously agreed on three changes to the FY2025 budget — add to the Medicaid matching fund, and add funds for the Fono building dedication and a District Governors’ pay raise.

The proposed changes were to be submitted when members of the House of Representatives arrived for the Joint Budget & Appropriation Committee budget discussion.

However, after waiting for about half an hour without any faipule showing up, the Senate President decided to postpone the deliberations until this morning.