FY2027 proposed budget reduced during discussions behind “closed doors“

FONO SEAL
Reductions reportedly primarily affect funding allocated under the Special Programs
andrew@samoanews.com

Pago Pago, AMERICAN SAMOA — The Fono's Joint Budget and Appropriations Committee has made several significant changes to the American Samoa Government's proposed Fiscal Year 2027 budget during closed-door deliberations held yesterday.

Members of the media who arrived to cover the budget discussions were denied access to the Fono guest house, where committee members met to review the spending plan. Fono staff informed reporters that the decision came directly from legislative leadership.

Prior to the committee meeting, Senate President Tuaolo Manaia Fruean, House Speaker Savali Talavou Ale, House Budget Committee Chairman Representative Vailoata Etuale Amituanai, and Senate Budget Committee Chairman Senator Utu Sila Poasa engaged in an extended discussion before budget deliberations began.

According to information obtained following the meeting, the committee reviewed revised budget figures submitted by Governor Pulaali'i Nikolao Pula's Executive Advisor for Finance, Brett Butler. The revisions reportedly affected several government departments whose directors have not yet been formally confirmed by the Fono.

As part of those adjustments, salary levels for some department heads were reduced, and in certain cases their titles were modified to reflect their current status pending confirmation.

One of the most significant areas of discussion centered on the local revenue portion of the FY 2027 budget, specifically funds tied to interest earnings generated from American Rescue Plan Act (ARPA) money.

The governor's budget proposal included a transfer item valued at approximately $13 million, described in the executive summary as anticipated interest earnings from ARPA funds. However, committee members questioned whether that figure accurately reflected the amount still available in the account.

Following its review, the committee agreed to lower that amount to approximately $4.2 million. The adjustment was made to reflect the balance remaining in the ARPA interest account after $10.1 million was invested in a pension fund in the United Arab Emirates.

As a result, the local revenue component of the FY 2027 budget is expected to decrease from roughly $137 million to about $129 million.

The reduction will primarily affect funding allocated under the Special Programs budget, where corresponding spending cuts are expected to be made to keep expenditures in line with available revenues.

Committee members are also revising the list of projects included in the government's Capital Improvement Projects program, although details of those changes have not yet been publicly released.

The House of Representatives is expected to consider the amended budget bill in its second reading today. A final vote could take place as early as tomorrow, after which the measure will be transmitted to the Senate for further consideration.

The budget legislation will determine how government revenues are allocated across departments, programs, and capital projects during Fiscal Year 2027, making it one of the most closely watched measures of the current legislative session.