The review by the Legislative Financial Office of ASG’s collections and spending for the first six months of Fiscal Year 2016 shows that projected local revenues fell far short of actual collections.
During budget hearings last year a few lawmakers insisted on slashing the local revenue portion of the budget to $100 million to be more realistic.
However those who sided with giving the governor his budget intact prevailed and local revenues were pegged at $104.4 million.
The LFO review of ASG finances includes the preliminary and unaudited statement of Revenues, Expenditures and Change in Fund balance, and General Fund and Funds in Treasurer’s cash pool.
According to the statement, ASG projected annual expenditures of $104.4 million.
However projected annual revenues comes to just $91.5 million.
This would result in a projected deficit for FY2016 of $11.9 million.
In ASG’s 2nd quarter performance report out last month Director of Budget Cathy Saelua praises the fact that all departments were within budget and there were no overruns. In fact many departments underspent their budgets even after they reduced their spending by 10%.
There was no mention in the whole performance report for the 2nd quarter of actual revenues against projections and actual expenditures.
The LFO review provides the first information we’ve seen on that part of government finances.
Goveror Lolo Moliga at last Friday’s cabinet meeting praised and thanked the cabinet saying that since they came into office they’ve been able to maintain government operations in the face of financial challenges.
He said with everyone working together he’s confident they will be able to reach the end of the fiscal year with the government intact.
