ASG Records Shortfall of $5.4 Million for First Quarter

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ASG recorded a revenue shortfall of $5.4 million for the first quarter of Fiscal Year 2016, according to an analysis by the Legislative Financial Office.

The analysis by the LFO was based on preliminary and unaudited General Fund Revenue reports from Treasury for the period from October 1st to December 31, 2015.

Tuala-uta Representative Larry Sanitoa had requested Legislative Financial Officer Talalemotu Mauga for ASG’s financial statement for Fiscal Year 2015 and a report for the first quarter of Fiscal Year 2016.

Mauga says in a cover letter which accompanied reports on ASG finances that the government started FY2015 with a deficit of $13.1 million and ended with a deficit of $8.2 million which will be carried forward to the current fiscal year.

Regarding the first quarter of FY2016, he said the General Fund Revenue Report as of December 31, 2015, budget vs actual revenues, reflected a shortfall of $5.4 million.

The LFO said Deputy Treasurer Tina Vaa had testified before the Senate that ASG collected about $2.9 million more in the first quarter of FY2016 compared to the same period in FY2015.

Mauga said, “I for one dont agree with her testimony…the first quarter of FY 2016 shows a revenue shortfall of $5.4 million.”

He applauds Senator Magalei Logovi’I for pointing out that ASG should collect $26 million per quarter based on the projections that local revenuess would raise $104 million.

He said, “We are only one quarter into Fiscal Year 2016 so let us wait and see what lies ahead.”

The report shows that individual taxes raised $5.9 million, excise taxes brought in $5.1 million, corporate taxes netted $2.4 million, military cover over taxes brought in $589,827 and the smallest amount came from excise taxes primarily from soda-$241,258.

licenses and permits collected $537,878 while fees and fines raised $649,364.

Charges for services which includes rents and leases, Port Administration, Sports Complex and others collected $1.2 million and the miscellaneous income which includes tobacco interest and what’s labeled as others brought in $309,456.

The last remaining category of revenues came from special federal grants like ROTC, Debt Service Fund and Interior Grant in Aid which amounted to $3.6 million.

The FY 2016 budget for ASG includes local revenues of $104.4 million which would mean that on a quarterly basis ASG should be collecting about $26 million.

But only $20.6 million was reached in the first quarter.

This is just the first quarter earnings and there are three remaining quarters for the fiscal year.

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