OFFICE OF THE GOVERNOR
PRESS RELEASE
(for immediate release – Thursday, August 30, 2007)
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Governor Togiola submits Proposed Final
FY2008 Budget to the Fono

(UTULEI) - Governor Togiola Tulafono has submitted to the Fono the Proposed Final Budget of the American Samoa Government (ASG) for fiscal year 2008 for Legislative review and to provide for its appropriation.

In a letter to the Senate President and Speaker of the House, dated August 24, 2007, before traveling to Honolulu for meetings, Governor Togiola said the plan reflects a careful and cautious revenue projection that is consistent with the actual revenues realized from the most recent trends.

“Revenue trends have remained relatively static over the past few years underscoring the fact that no new revenue measures have been enacted to increase our revenue base,” said Gov. Togiola. “These scarce resources were carefully allocated to ensure current service levels continue in the coming fiscal year.

Governor Togiola told the Fono leadership that any improvements in services will have to come from increased performance efficiency and effectiveness rather than from new funds; a fact that certainly highlights ASG’s persistent commitment to controlling unnecessary spending and executing cost control measures throughout the new fiscal year.

Proposed Final Budget of the American Samoa Government FY2008

• Local revenues are projected at $64.5 million.

• The Department of Interior grant in aid is at $22.77 million as that revenue stream continues to decline from a high of $23 million just a few years back.

• The total authorized by the United States Congress for Capital Improvement projects funding is $10.43 million.

• Federal grants supporting government operations are estimated at $98.87 million.

• Our Enterprise Funds are projecting a total of $107.8 million in local revenues and expenses excluding subsidies and Federal grants.

• In sum, a total of $304.37 million is proposed in revenues and expenditures for government operations and enterprises in fiscal year 2008 or an increase of about 6.2% from fiscal year 2007.

• Federal grants and Enterprise funds account for the most increases from the previous fiscal year.

• Federal grants are estimated to increase by $10.1 million or 11% while Enterprise funds are projecting a growth $7.6 million or 7.6% over the previous fiscal year.

• Local revenues and expenditures are projected at the same level as in fiscal year 2007.

“Although the future of the tuna canning industry is uncertain as it is buffeted by the impacts of rising minimum wages and escalating fuel costs, there is a glimmer of hope that their operations will continue into the near future as evidenced by the recent signing of a Power Purchase Agreement between Chicken of the Sea and the American Samoa Power Authority,” said Gov. Togiola. “Star Kist, on the other hand, is anticipating launching the production of the tuna pouch. These events will continue to drive economic activity within the Territory in the next few years.”

On the economic front, Governor Togiola said ASG continues to investigate new avenues to diversify its economy. He said one of the key initiatives that will contribute to this effort is terminating the fiber optic land line in the Territory within the next year.

“This will certainly boost communication related business and allow the Territory to take advantage of new technologies and create an environment for new employment of our people,” said Gov. Togiola. “We will continue to pursue improvements to our financial management capabilities as well as better management of the federal grant programs within government.”

Governor Togiola said the increase in federal funds for the new fiscal year provides for increased training in grant writing and improve overall grant compliance. He said this effort has begun with the recent grant workshops in San Francisco, which was attended by all the key financial agencies of our local and federal government. The stated intent of that workshop was to increase ASG’s compliance with the Office of Management and Budget circulars governing the use of federal funds.

“We approach the future with confidence by placing our aspirations and hopes not just on economic activity and our cherished social and political stability but on our Constitutional foundation of “Muamua le Atua,” (Let God Be First) said Gov. Togiola. “Ultimately, we entrust our future in the hands of the Almighty as called for by our Constitution and by the faith of our people.”
As in the past, Governor Togiola said all the directors of the executive departments and agencies are available for questions and inquiries during the Fono deliberations and review of the budget proposal.

Hearings are scheduled at the Fono after the Labor Day holiday on Tuesday.