ASG begins the 3rd quarter of Fiscal Year 2016 with cost containment measures similar to what the Lolo Lemanu administration implemented when it first took office in FY2013.
The cost shaving steps were among the topics discussed at the latest cabinet meeting last Thursday.
Budget Director Cathy Saelua informed directors that in order to obtain a balanced budget, it is of utmost importance that expenditures are made in accordance with actual revenue collections.
Saelua met with Governor Lolo, the Treasurer and Director of Human Resources to discuss proposed measures to ensure that spending keep pace with actual revenues.
A March 23rd memo that the Budget Director sent to the cabinet outlines five cost containment measures:
- No new hires or replacement of vacant positions unless position is deemed critical
- All personnel reclassifications, adjustments cease now except for increments
- Restricted off island travel on local accounts with the exception of Manu’a
- Unbudgeted requests will be denied.
- Supplies and equipment are to be reviewed on an as needed basis and must be critical for the department’s operations.
Budget Director Cathy Saelua explained why the measures are needed now.
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Governor Lolo told directors that they are keeping a close eye on revenues as there are many economic factors affecting funding for government operations.
He said revenues are not coming in as strong as they projected.
The governor clarified that the freeze on hiring will not affect federally funded positions.
Lolo asked for the cooperation of all directors and urged them to work with the Budget Director and Human Resources to avoid interruption of their operations owing to poor or incompetent management of funds.
