The American Samoa Community College continues to face funding challenges, partly caused by a shortfall in local subsidies from ASG.
For FY2020, ASCC had requested $3.9 million based on its enrollment, however only $1 million was approved in its final budget. And it didn’t even receive all of that $1 million, just $850,000. ASG deducted $146,898 for property insurance.
Based on public law, ASG is to provide $2,820 for each full time student enrolled at the college , and each year an inflationary adjustment of 4.8% is to be added to the ASG annual subsidies for ASCC.
By the college’s calculations, ASG should provide $4 million in subsidies to ASCC for FY2021.
It’s been the position of this and previous administrations that subsidies for the college and LBJ Hospital can only be paid if there are available revenues.
ASCC enrollment of full time students for the 2019-2020 school year totaled 2344,. The year before it was 2,601.
Two years ago the Fono approved legislation assigning a portion of the tobacco tax to fund the college subsidy.
In FY2018 ASCC received just over $1 million from the tobacco tax. For FY 2020, the total received up to the beginning of September was $1.5 million.
ASCC is asking the Fono to identify a source of funding to pay for the subsidies that are due the college. The options are to increase the portion of the tobacco tax for ASCC, assign 2 cents per gallon from the fuel tax , 2 cents from every $1 earned from excise taxes or other taxes to the college.
It’s also seeking an exemption from excise taxes. For FY 2020, ASCC paid $45,31 in excise taxes.
Other legislation that ASCC is asking the Fono to consider is to tax private institutions offering higher education in the territory , and establish a territorial review Board for Higher Education.
