The governor has informed the Fono leaders to consider a continuing resolution to allow the government to operate for the next 30 days while the Fono revisits the Fiscal Year 2021 budget for ASG.
The FY2021 budget law landed on the governor’s desk day before yesterday and there was an immediate response from Governor Lolo Moliga.
Acknowledging receipt of the approved FY2021 budget, the governor expressed his disappointment that the Fono did not extend the executive branch the courtesy of explaining the rationale behind its move to reduce agency budgets while adding half a million dollars, or a 7% increase to the Fono’s budget, a move which he said “obviously contradicts whatever criteria” the Fono used to justify its actions.
“Given that the budget cuts executed by the Legislature will extremely undermine the vision inherent in the preparation of the FY2021 budget, it is obligated to provide details and factors which it used to base its budget decision,” pressed Lolo. “It seems apparent that the Legislature arbitrarily decided to reduce and to revert all operating budgets to the Fiscal Year 2020 levels without its reasons for doing so.”
As KHJ News has reported, the Fono made cuts in the budgets of executive branch departments and agencies and reduced the total budget amount from $465.9 million to $459.4 million.
In the governor’s view, ‘there’s been phenomenal progress in the quality of public facilities and human resources development since 2013. “
That’s the year the Lolo/Lemanu government entered office.
“This progress,” Lolo said, “has been made possible by our collective engagements in progressive and aggressive financial planning reflected in the growth of our annual financial plans.”
He pointed out that except for one operating year ASG has had fund balance surpluses.
He said the end of August financials indicate “a huge surplus and revenue collections will meet FY2020 revenue projections, and these positive gains is the basis of confidence in the revenue projections for FY2021. Instead the Fono has reduced projected revenues by $6.5 million or 40.6%”.
The governor asserted that the Fono explain and provide data “to substantiate this drastic reduction in revenues” and suggested that this “arbitrary slashing of agency budgets appears to be a mathematical exercise instead of a thoughtful plan to sustain social and economic progress achieved since 2013. “
Explaining the basis of his proposed FY2021 spending plan he said that increases in agency budgets reflects efforts to encourage employees to seek further education that would translate to improvement of quality of services for our people, motivate productivity, establish a sufficient living wage and more importantly incentivize young people to complete and seek postgraduate education.
He referred to the salary threshold of $12,000 for high school graduates and $16,000 for AA degree holders that are included in the FY2021 budget.
Lolo said the Fono’s budget changes “will create havoc” to efforts to improve the quality of life for our people .
“We have invested in moving our government forward and not retroversion,” he said, “and this decision by the Legislature will “regrettably push us backward.” He added that the FY2021 budget was prepared to provide the next leaders sufficient financial room to modify the budget to reflect their administration’s priorities.
Lolo concludes his letter expressing hope that the Fono leaders will provide him with the basis for the Fono’s actions on the FY2021 budget.
“I also seek for possible consideration of a continuing resolution to allow the government to operate for the next 30 days at the FY2020 budget levels while the FY2021 is revisited. “
The Fourth Regular Session of the 36th Legislature concluded yesterday so it’s uncertain if a continuing resolution is possible before the new fiscal year begins at midnight tonight.
