The Office of Budget Planning and Development is pegging local revenues for the proposed Fiscal Year 2026 budget for ASG at $135 million, 23% less than the FY2025 total of $165.9 million.
The budget call from Acting Director of the Budget Office Satia Aokuso Satia says, “Currently, our revenues are trending at normalized pre-pandemic levels. Collections are sufficient to discharge operating expenses but not ample to meet other outstanding commitments such as the $11 million owed contributions to the retirement and other debts to contractors and vendors.”
Satia added that the intent is to set the budget for the new fiscal year “conservatively, whereby there is a high degree of generating an excess. Hopefully, this will provide some flexibility and capacity to improve our cash flow.”
According to the budget call, the government leadership is committed to key priority areas such as education, healthcare, public safety, and economic development. Resources are to be allocated to other critical underfunded areas within the government as funding permits.
“Given how scarce and limited our resources are, we must contend that we simply have to live within our means,” said the Acting Budget Director.
“Consequently, as approved by the Governor, I hereby set the FY2026 Budget Ceiling at approximately $135 million, or 23% less than FY2025 budget.”
Departments, agencies, as well as the Fono and Judiciary were given budget ceilings to adhere to in preparing their FY2026 budgets. All budget proposals are to be submitted to the Budget Office no later than May 30.
Semi-autonomous authorities are to prepare their proposed budget plans for direct submission to the Legislature and to the Budget Office to be included in the main Budget document proposal.
The budget call letter was dated May 15, but was sent out on Monday.
