Pago Pago, AMERICAN SAMOA — As in previous years, ASG semi-autonomous agencies — referred to as Authorities — are submitting directly to the Legislature their proposed fiscal year 2021 budges where lawmakers are also seeking profit and loss statements from these government entities.

Budgets for the authorities come under Enterprise Fund, which also include divisions of ASG departments that earn revenue from their operations — such as the Sports Complex, Tafuna Industrial Park and Fagatogo Market Place.

In his cover letter — which includes the FY 2021 financial plan — the governor informed Fono leaders that the Authorities would continue to submit the details of their respective budgets directly to the Fono, separate from the budgets of the general government.

He explained that the authorities will present the details of their FY 2021 budgets and are also to provide copies to the executive branch budget office.

According to the governor, this process will highlight the budges of each authority “for better scrutiny and legislative deliberations”.  A brief summary of the authorities’ budgets are listed under the Enterprise Fund — which totals $210.79 million, an increase of $27.37 million — or 15% from the prior year.

The hike is “mostly due” to the increased funding for LBJ Medical Center, the Board of Higher Education — referred to as the American Samoa Community College; and the Debt Service Fund, he said.

“The increased funding will help improve services as well as allocating enough to fully fund the bond payment obligation,” he explained. (ASG Treasurer Ueligitone Tonumaipe’a had previously testified in the Fono that the entire Debt Service — totaling $14 million — covers bond payments.)

ASPA SUMMARY

For the American Samoa Power Authority, total proposed budget is more than $87.99 million, which broken down in it’s four divisions - electric $48.37 million; water division is more than $20.78 million; waste water at just over $13.09 million; and solid waste with $5.75 million.

“We have aggressively capitalized on harvesting and harnessing the sunlight to power our territory highlighting our shared goals towards global efforts to revert the disastrous effects of climate change along with reducing our carbon footprint,” the governor told Fono leaders in his cover letter.

“Our march towards 100-percent renewable energy benchmark continues with the American Samoa Power Authority pursuing the establishment of a 10 Megawatt Solar Powered Generation System and a 24 Megawatt Wind Powered electrical generation system,” he pointed out. “At the completion of these developments it is anticipated the cost of one kilowatt of power will plummet from the current cost per kilowatt.”

ASTCA SUMMARY

American Samoa TeleCommunications Authority’s budget totals $21.13 million, according to the brief summary. The governor also shared with Fono leaders a brief update on ASTCA, which he says has launched its LTE service along with other communication devices.

“The IPTV cable service will become live in the beginning of the 2021 fiscal year,” said Lolo, but didn’t provide an update on his proposed plan since two years ago to merge the Office of Public Information/KVZK-TV with ASTCA — that will also further boost what will then be ASTCA cable television.

“Improvements at ASTCA’s financial position is now a reality with great hopes for greater financial upsurges,” he said, and noted that ASG has “collectively invested $29 million” in building the territory’s technological industry. “New call center companies are setting up with expected start up in mid year 2021.”

Investment referred to by the governor is through the American Samoa spur — overseen by ASTCA — connecting to the Hawaiki submarine cable.

OTHER AUTHORITIES

Summary for other semi-autonomous agencies: $65 million for LBJ hospital; just over $10 million for ASCC; and $1.60 million for the American Samoa Shipyard Services Authority.

As of last Friday, several lawmakers say budgets of the authorities have already been received and distributed to both the Senate and House. Hearings for these entities are scheduled throughout this week.

VISITORS BUREAU

Although the American Samoa Visitors Bureau is established by law as an authority, generating its own revenues for operations, it has been unable to do that on its own. Therefore funding comes from the general government fund, with FY 2021 budget total at $743,500.

Visitors Bureau budget hearing was held last week and there were no questions asked of the executive director Taimalelagi Minnie Tuia and board chairman Malemo Tausaga, as some lawmakers took into account the fact that tourist travel is currently impacted by COVID-19 restrictions, closing both air commercial travel and cruise ships since late March this year.

In his cover letter to Fono leaders regarding tourism, the governor reiterated what he has said in the past years. And that is, local tourism development continues to receive attention based on the belief that this is American Samoa’s best and most viable option for economic diversification.

However, he said progress has been minimal because air transportation continues to be the “stumbling block due to inordinately high airfare costs”. He didn’t explain further which airline is to be blamed for the high airfare costs.

At another section of his letter, the governor argued that tourism development is “thwart” by federal cabotage policy — which bars foreign airlines from carrying passengers from between two US airports. (Samoa News points out that Lolo as well as previous governors has been unsuccessful in seeking a federal cabotage wavier for American Samoa.)

“The current monopoly forcing the payment of an average roundtrip of $1,500 to and from American Samoa will not encourage visitors to our territory,” he said but didn’t identify the airline by name that is offering such monopoly airfares. “With competition, airfares would certainly be more reasonable.”