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Fono finds funds to pay Gov and Lt Gov salary hikes

Money to fund the proposed increase in the salaries of the governor and lieutenant governor is the only major change that both the Senate and House have made to their respective versions of the fiscal year 2015 budget, which is scheduled to go through a third and final reading today in both chambers.

 

When the Fono Joint Budget Committee approved the final FY 2015 budget early last week, two major changes were made: $65,000 to pay the hikes for the governor and lieutenant governor, and $370,000 for Medicaid matching funds.

 

To fund these changes, $200,000 was cut from the American Samoa Visitors Bureau and $235,000 from three programs under the Special Program budget category.

 

These changes were adopted by the House on Wednesday, who approved their version of the bill in second reading. However, the bill was not reported to the floor on Thursday for a third and final reading.

 

After the joint committee decision, the Legislative Financial Office conducted another review of the FY 2015 budget bill summary and found that the $370,000 is already included in the budget for the Medicaid Office, which is under the jurisdiction of the Governor’s Office.

 

HOUSE DEBATE

 

Prior to the start of last Friday’s session, House Speaker Savali Talavou Ale called a special meeting of the House Budget and Appropriations Committee to discuss what he called a 'new amendment' to the FY 2015 budget.

 

Committee co-chairman Rep. Talia Fa’afetai Iaulualo explained that it has been identified that the $370,000 in Medicaid matching fund is already in the summary of the budget bill and therefore the only change to be made is the reallocation of $65,000 from the Visitors Bureau budget to the Governor's Office budget, which will now have a total of $5.63 million.

 

He said the $235,000 — which was endorsed by the Joint Budget Committee and passed by the House in second reading — will be restored to the Special Program budget category, while only $65,000 will be taken out of the Visitors Bureau budget instead of the original amount of $200,000.

 

Savali pointed out that there was a letter from the Governor’s Office requesting Medicaid matching funds, but the matching funds are already included in the budget bill. (The letter was from Fiu Johnny Saelua more than two weeks ago.)

 

Rep. Maugaoali’i T. Anoa’i reminded his colleagues that several lawmakers during joint budget hearings had voiced their concern over the huge amount of $900,000 allocated to the Visitors Bureau.

 

Maugaoali’i suggested that the House should still cut the $200,000 from Visitors Bureau, then reallocate $65,000 to the Governor’s Office while the balance could go to other important programs such as the ASG local Road Maintenance subsidy (which has a budget of $600,000).

 

Talia pointed out that the Joint Budget Committee had already made its decision on changes to be made to the FY 2015 budget  and the only minor amendment now being made by the House is for the re-allocation of $65,000  to the Governor’s Office budget.

 

However, Rep. Atualevao Gafatasi Afalava joined Maugaoali’i in reiterating the need to reduce the Visitors Bureau budget and reallocate the $200,000 for other important purposes.

 

Rep. Pulele’iite Tufele Liamatua said that any other changes done to the FY 2015 budget — outside of the amendments agreed to by the Joint Budget Committee — means another joint committee debate.

 

In the end, the House Budget Committee agreed to only $65,000 being cut from the Visitors Bureau budget to the Governor’s Office budget. The amendment was presented to the floor at last Friday’s House session and was approved.

 

Savali told lawmakers that the one amendment will now be included in the final House version of the budget, which will go through third and final reading today.

 

SENATE SESSION

 

In the Senate, its version of the budget  bill was delayed being presented to the floor for second reading until last Friday’s session, where Senate Budget and Appropriations Committee chairman Sen. Laolagi F.S. Vaeao explained the one-change to be made — that of cutting $65,000 from the Visitors Bureau and reallocating that amount to the Governor’s Office, noting that the Medicaid matching funds were already included in the budget bill summary.

 

Sen. Magalei Logovi’i questioned the purpose of adding the $65,000 to the budget for the Governor’s Office, when the Senate has yet to see or pass legislation to hike salaries of the governor and lieutenant governor.

 

(The House bill to hike the salaries of the top two officials of the executive branch remains pending in a House committee, but it does not identify a funding source.)

 

Senate President Gaoteote Tofau Palaie responded that it's the Fono’s responsibility when it comes to dealing with the pay of the governor and lieutenant governor, and the Fono is acting accordingly by providing the necessary funding source to cover the pay hikes in the House bill.

 

Gaoteote also shared that he doesn’t believe the governor wants the pay increase, but, again, it's the responsibility of the Fono to review such matters. He also pointed out that several executive branch directors are getting pay hikes in the FY 2015 proposal.

 

During the joint budget committee debate early last week Gaoteote and other lawmakers   said that chief executive officers of semi autonomous agencies all make more money than the governor and lieutenant governor.

 

During the second reading last Friday, the Senate approved its version of the budget bill with the one amendment.