At the end of the second quarter of Fiscal Year 2026, ASG revenues were 13.2 percent below budget projections.
In response to the shortfall Governor Pulaalii Nikolao Pula has asked departments to implement cost cutting measures to ensure fiscal stability for the remainder of the fiscal year.
The Governor said in a memo issued on Friday, “While we remain committed to maintaining essential government services and supporting our community, this shortfall requires us to exercise additional caution and discipline in managing expenditures moving forward.
“Accordingly, the Administration is requesting the cooperation and support of all departments, agencies, and authorities in implementing the following measures effective immediately”.
The measures outlined in the memo would restrict hiring, travel, and overtime and conservation of power and fuel.
On hiring departments have been asked to temporarily limit new hiring. Exceptions may be considered for positions tied revenue generation, public safety, healthcare, or other essential operational needs.
Non-essential travel should be deferred at this time and departments have been urged to use virtual participation. All travel would require prior approval through the Governor’s Office. Consideration will continue for travel that is fully grant-funded, including associated stipends.
Departments have been encouraged to minimize overtime where feasible. Exceptions are for emergency services or critical operations.
The Governor asked that departments actively conserve power and fuel consumption, making sure lights, air conditioning units and office equipment are turned off when not in use or offices or facilities are unoccupied. He also urged that government vehicles not be used for personal purposes.
Governor Pulaali’i said the administration will work with the other branches of government to address these fiscal challenges, particularly when the Fono reconvenes in July.
