FY2018 Budget for Some Depts Will Be Reduced 10%

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Government agencies and departments operating on local funds will have their budgets deducted by 10% in the new fiscal year, 2018.

This was announced by Governor Lolo Matalasi Moliga during the cabinet’s monthly meeting last Friday.

In response to directors who asked for an elaboration about the reduction, the governor said only locally funded departments will be affected.

Those paid with federal grants will not be affected.

The governor is urging departments with access to federal grants to push for those funds to assist with government operations.

Except for a few new Directors, Governor Lolo reminded the rest of the cabinet that they have been given the opportunity to review and adjust their organizational structures in a way that will best serve residents with available resources.

He urged directors to restructure their organizations to ensure the most effective means that would benefit the people of American Samoa.

Lolo advised directors to prioritize their services according to what is most critical and have these plans reflected in 90% of their budget.

The other 10% will be submitted for Fono approval in a supplemental when the need arises.

The governor is predicting that the government will be in the red by $7 million by September 30th based on reports from  Treasury and the Budget office.

The reason for this, said Lolo, is because directors are spending more than their approved budgets.

To reiterate his point about the need to reign in spending, the governor said ASG is now going to operate on real value that is according to actual revenue collections.

During the meeting Budget Director Catherine Saelua elaborated on the administration’s budget plan for the new fiscal year.

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