Governor Pulaalii Nikolao Pula has ordered a 10% reduction in spending across the board for ASG departments and agencies, and placed restrictions on hiring, overtime, and travel.
The Governor said in a memo issued today that research by their transition team and Governor’s Office staff confirms that ASG has fallen far behind meeting its financial obligations. And he said the situation is getting worse with each payroll period.
He is, therefore, implementing a series of cost containment measures until further analysis of government finances is completed.
All hiring of employees paid by the General Fund will require the Governor’s approval.
All departments and agencies must take immediate action to reduce spending of General Fund dollars by 10% of the ASG Budget for Fiscal Year 2025. Spending reductions begin today, and revised budget proposals must be submitted to the Governor no later than January 31st.
All overtime must be pre-approved by the department director or the equivalent leadership, and work schedules must be optimized to prevent employees from working more than 40 hours a week.
The Governor also ordered departments to take energy conservation measures, noting that ASG currently owes ASPA a significant power bill.
He said energy use will be aUnited and departments that don’t show a reduction in energy use will be held accountable through further budget reductions or other means.
Governor Pulaalii also directed that no payments will be issued unless a properly approved purchase order or contract is on record for services, or merchandise.
Travel using the General Fund must be approved by the Governor, or his designee, until further notice. Where possible, non-essential travel that has already been arranged should be canceled or rescheduled, unless such travel is approved by the Governor.
Semi-autonomous agencies and authorities are exempt from this general memorandum.
The Governor said, “As we obtain a clearer picture of the government’s financial status we will adjust these cost containment measures.”
