The House and Senate Budget Appropriations Committee began joint hearings this morning on ASG’s proposed budget for Fiscal Year 2024 totaling $664.9 million.
The first witnesses were Budget Director Catherine Saelua, Governor’s Chief of Staff Loa Tuimavave Tauapai Laupola, and Acting Treasurer Levi Reese, who was approved by the Committee to testify in the absence of Treasurer Malemo Tausaga who returns from off island tonight.
The breakdown of the proposed budget is:
- Local Revenues total $143 million
- Federal Grants amount to $275.3 million
- Enterprise Funds total $263.3 million and
- Capital Improvement Project funds amount to $10.2 million
Senator Utu Sila Poasa, who co-chaired the budget hearings with Rep. Vailoata Amituanai noted that ASG has reported a surplus each year for the past several years.
He said with each surplus, ASG’s budget keeps growing but he’s concerned that there’ll come a time when ASG cannot raise the level of local revenues in the budget.
He also questioned if departments are spending funds which are approved in the appropriations law each year.
Senator Utu said the annual allocations for each department should be spent for the purposes for which they were approved in the budget.
Budget Director Saelua said that the Budget Office approves requests from departments, as long as there’s money in their budgets.
Utu also questioned why the administration doesn’t include the estimated surplus in the new year budget for ASG, so that the resources can be distributed to where the needs are.
Rep. Larry Sanitoa pointed out that in two years, funding for federal programs such as ARPA, CARES Act and various federal grants, as a result of COVID would end. He asked if ASG’s financial officials have plans to cover payroll costs and other expenses when these funds run out.
The Budget Director said they have discussed this and indicated that revenue measures will be forthcoming.
Senator Tuiasina Laumoli recalled that millions of dollars in federal funding for Medicaid were returned unused because ASG could not provide local matching funds. He said $55 million was returned in FY2020, $42 million in FY2021, and $37 million in 2022.
He said healthcare should be a priority and asked the ASG officials to address the matching fund so that the federal funding made available for American Samoa can be used.
Senator Malaepule Saite Moliga felt that newly created departments such as Search and Rescue and Dept. of Corrections are not allocated adequate funding.
Vice Speaker Fetui Fetu asked Deputy Treasurer Levi Reese about the $4 million in subsidies for the hospital that was transferred out of an ASG account. Reese responded that the matter is still under investigation and she, therefore, cannot comment on it; adding that a hearing is scheduled in the Senate on Wednesday, on this topic.
