Pago Pago, AMERICAN SAMOA — The budget call letter, sent out on June 2, 206 by the Office of Program Planning & Budget (OPPBD) for submission of FY2027 budget proposals from all government departments, agencies, authorities, and entities identifies the Governor-approved General Fund ceiling for FY2027 as $133 million — 5% less than the FY2026 budget amount of $140.7Mil.

Signed by Taua Niualama E. Taifaine, the director of OPPBD, the call letter directs that agencies/ departments must prepare General Fund requests within the Governor-approved General Fund FY2027 ceiling and are not to submit “an above-ceiling request or add unfunded items to the budget workbook.”

It states that if “an agency believes a legal mandate, fixed cost, or Governor's priority cannot be funded within the ceiling,” it is to “notify OPPBD immediately; only OPPBD, after consultation with the Governor, may issue a revised ceiling.”

A General Fund (Local) Budget Ceiling Schedule attached with the call letter itemizes the General Fund Ceiling for each department, listing each of their proposed budget ceiling amounts.

Review of the schedule shows that two departments have their proposed budget increased from their FY2026 budget level — Treasury at 20% and the Arts Council at 12%; six (6) departments maintain their funding levels — which includes the Legislature and Public Safety; while the rest of the departments/ agencies are looking at decreases in their budget — and not at a set percentage across the board.

Double digit decreases are set for the following:

Voc. Rehab- 33%, Department of Commerce- 32%, TAOA- 31%, Administrative Services- 30%, DHS- 23%, Worker’s Comp Office and Public Information at 21%, Criminal Justice- 17%, Admin. Law Judge- 14%, Territorial Audit, DHR, Medicaid at 11%, with DOE and Local Government at 10%.

Single digit decreases are listed as follows:

DYWA- 2%, followed by Agriculture and Legal Affairs at 3%, with the Governor’s Office, Procurement, Property Management and the Correctional Facility all listed at 4%. Port Administration is looking at 5%, with Scholarship taking a hit at 6% along with the Election Office. The Public Defender’s Office, DMWR, and Search & Rescue follow with 7%; while Parks & Rec, Budget Office and Public Works are at 8%; and, Public Health is looking at 9%.

Of note, one of the attachments to the call letter, “Budget Assumptions” advises agencies/ departments what to keep in mind while preparing their budgets. Included in the ‘assumptions’ is that “all positions vacant as of June 1, 2026, are to be removed from agency budget requests, and there are to be no pay adjustments and/ or any promotions included in the submission. Travel requests are also to be limited to federally mandated, legally required, revenue-generating, or mission-critical activities.

OPPBD also reminds departments that “subsidized appropriations can only amount to what government can afford.”

The call letter concludes with a request to “also submit a summary of your existing five- year plan for your department when attending the upcoming negotiations at the Governor’s Office.”

The final document or budget book, according to OPPBD, is set to be released at around the same time the Governor presents it in a message to the Legislature — July 20, 2026.

BACKGROUND

The YTD General Fund Revenue report for FY2026 as of March 31, 2026 (2nd quarter), unaudited, shows a 13.7% shortfall overall in the General Fund:

Total General Fund:       $140,749, 000 budgeted

Per quarter:                   $  70,374, 500  budgeted/ to be collected

Actual total:                   $  60,724, 450  collected

Over/ Short:                   -$    9,650, 050  shortfall is -13.7%

The report points out that the majority of the shortfall came from Tax Collections.

The Expenditure Report for the same period lists four (4) departments overspending their budget YTD: Treasury (by 30.7%), Port Admin (by 22.6%), Arts Council (by 11.5%) and Correctional Facility (by 4%).