Pago Pago, AMERICAN SAMOA — The American Samoa Government has reported a robust financial performance for the first quarter of fiscal year 2026, achieving a substantial surplus of $7.8 million.  

Acting Treasurer Brett Butler submitted the comprehensive first-quarter financial report, detailing financial activities from October 1 to December 31, 2025, to the leaders of the Fono during his confirmation hearing this week. 

The report reveals that tax collections fell short of initial projections by $1.9 million, underscoring the need to reassess revenue expectations. Specifically, individual income tax revenue declined by $3.5 million compared to budget forecasts. The budget had anticipated collections totaling $11.1 million, however, the actual revenue reached only $7.7 million, reflecting broader economic challenges and potential impacts on individual taxpayers.

In contrast, corporate tax collections performed strongly, surpassing expectations by $2.3 million. The projected figure was $7.8 million, yet the actual revenue generated was an impressive $10.1 million, suggesting that businesses in the territory are contributing effectively to the economy despite the challenges faced by individual taxpayers.

Overall, total revenues collected during the first quarter of fiscal year 2026 were $39.6 million, below the anticipated $41.5 million, resulting in a notable shortfall of $1.8 million. This discrepancy underscores the ongoing challenges in meeting revenue expectations.

The report does reveal that government spending came in 24% under budget at $26.8 million, compared to the projected $35.2 million. Most departments showed significant underspending relative to their quarterly allocations.

However, Treasury was the only department that did not adhere to budgetary constraints; it reported an overspending of $490,000, with actual expenditures of $2.7 million against a budget of $2.2 million.

Spending in the Special Programs category — which is under the purview of the Governor’s Office, was also below budget expectations —  by $2.9 million. Overall, $5.1 million had been allocated for the first quarter, actual expenditures totaled just $2.2 million.

But, there were a few specific programs that exceeded their budget allocations: the Governor’s Contingency Fund overspent by $26,026; the Small Village Fund by $36,967; the ASCC Nursing Program by $9,750; and the Language and Cultural Arts Development program by $33,750.

Additionally, the report reveals that 11% of the $6.8 million collected in earmarked funds during the first quarter was allocated to debt service.