Revenue projection for FY2015 has over $2Mil drop
A slight drop of 2% in the FY2015 proposed ASG budget is due to less money seen collected “in the tax revenues, fees and permits, as well as charges for services being offset by increases in licenses and permits, miscellaneous, and transfers in revenue categories between the current and next fiscal years,” said Governor Lolo Matalasi Moliga in his FY 2015 budget cover letter. The FY2015 budget was sent in PDF form to the Legislature for budget approval, yesterday morning.
Total projected revenues for fiscal year 2015 are $106,240,000 which is $2,134,000 — 2% — lower than fiscal year 2014.
Lolo pointed out in his 26-page letter, dated July 14, 2014, that it is important to note that the budget is planned around compliance with the Anti-Deficiency Law, while acting as “an economic development stimulant financing tool”. In particular, the budget plan is based on the idea that its expenses do not exceed actual collections.
The letter says that the fiscal year 2015 final budget is capped at $424,483,500, (reflecting $31,396,000 or 7%) lower than the fiscal year 2014 budget of $455,879,500.
Lolo said the fundamental aim of the government’s final Fiscal Year 2015 Budget is to continue “the placement of emphasis on the successful advancement of our territorial priorities targeting the improvement of government services to the people of American Samoa, thereby enriching their quality of lives.”
The cover letter notes the Legislature and the Administration have strived together “to bolster our economy, improve the quality of education available for our children, develop our healthcare system to effectively respond to the medical needs of our people, and change the service culture of our government, placing our people first.”
It adds, “More importantly, the government is making great headway in building private sector confidence in the government’s commitment to strengthening and expanding our economy.”
Lolo says the Legislature of American Samoa and the Executive Branch made a joint commitment at the start of the 34th Legislature and the onset of this administration to practice due diligence in adopting and implementing prudent financial management methods fundamental to the improvement of the financial integrity of the American Samoa Government, which has been called into question by the Federal Government.
“I am very pleased to announce that through our collective efforts an unmodified opinion was issued on the general government financial statements and a qualified opinion was issued on the LBJ financial statements for our fiscal year 2013 audit.
“Further, the net financial position of the primary government increased by $8,290,219 or 2.9% in fiscal year 2013 compared to the previous year.
“Moreover, the General Fund reported a net fund balance at the end of the year (deficit) of ($4,804,671) as compared to the prior year net fund balance (deficit) of $7,882,924) thus reducing the deficit fund balance by $3,078,253.
“The other most noted accomplishment in fiscal year 2013 is that long-term debts of $53,745,797 for fiscal year 2013 reflect a reduction of $5,898,048 or 9.9% from fiscal year 2012.
“For the first time the American Samoa Government filed on time its audit report with the Federal Government,” said Governor Lolo.
Lolo said the financial plan, prepared to finance government activities in fiscal year 2015, is an economic development stimulant strategy, aimed to improve our economy.
“Inherently, this financial plan fosters the injection of needed capital to stimulate economic activity with expected subsequent generation of jobs. The overall thrust of this financial plan is to expand the economy of the territory, thus moving towards attaining our goal of self-sufficiency.”
Fiscal Year 2015 Final Budget (Aggregate):The total fiscal year 2015 final budget is capped at $424,483,500, reflecting $31,396,000 or - 7% lower than the fiscal year 2014 budget of $455,879,500.