Before slashing the American Samoa Visitors Bureau budget and Special Programs budget category by more than $400,000, which has been reallocated for other purposes, the House yesterday approved in second reading the fiscal year 2015 budget.

The budget goes through third and final reading today in the House while the amendments — which do not increase the FY 2015 budget total of $424.48 million — go through second reading in the Senate today, along with the entire budget bill.

The amendments were endorsed by the Fono Joint Budget Committee on Tuesday, in which $370,000 will be used for Medicaid matching funds and $65,000 will fund the proposed pay hikes for the governor and lieutenant governor. (The pay hikes have been proposed in a separate House bill.)

The first victim of the joint committee’s cuts was the Visitors Bureau, slashed by $200,000 — reducing the agency’s FY 2015 budget from $900,000 to $700,000.

The other three victims are in the Special Program budget category, whose initial budget submission totaled $22.12 million.

With the $235,000 cut by the Fono for reprograming, the total for Special Program stands at $21.88 million. Other reductions are as follows:

•            Sports Complex subsidy by $100,000, from $300,000 down to $200,00

•            ASG subsidy for Road Maintenance by $100,000, from $600, 000 down to $500,000

•            ASG local fleet fuel by $35,000, from $500,000 down to $465,000.

Samoa News should point out that the ASG subsidy for Road Maintenance is separate from the annual Road Maintenance Program account, which is listed under the Enterprise Fund and administered by the Department of Public Works. This account is funded by a portion of the fuel tax.

In addition, in the Special Program category are funds set aside the Veterans Stadium upgrades, and this was not touched as the stadium is targeted by the administration to attract regional tournaments, as well as to continue use of the facility by local sports groups.

SENATE SESSION

At yesterday’s session Sen. Laolagi F.S. Vaeao, chairman of the Senate Budget and Appropriations Committee, thanked his fellow senators for their support and hard work during the three weeks of the FY 2015 budget hearings.

He said the joint budget committee has agreed to the final budget of FY 2015, which includes $106 million in local revenues. “Despite any differences in opinions, let’s all now support the government, our government as we look forward to the new fiscal year,” Sen. Laolagi said.

The senator said he prays and is hopeful that the government will be able to collect the projected revenues for the new fiscal year. (See yesterday’s story on other details from Tuesday’s budget debate)

One big concern heard from lawmakers during the budget hearings — and also at Tuesday’s budget debate — was whether or not ASG will be able to collect $106 million in FY 2015, given the fact that ASG had projected $108 million in revenue for the entire FY 2014, but the Treasury report now forecasts that ASG will collect only $99 million when FY 2014 closes on Sept. 30 — a difference of $9 million.

Additionally, the independent audit report by Moss Adams for FY 2013 shows that ASG actually collected just over $90 Million. (The audit report, released in June this year, also shows a $10.43 million overrun for FY 2013.)