Following a verbal request to the Fono leaders, Gov. Lolo Matalasi Moliga will address a joint session of the Legislature when lawmakers convene on Monday, July 10 for the Second Regular Session of the 35th Legislature.

The governor is required by law to address a joint session of the Fono in January each year at which time the chief executive outlines the current financial status of the government, and the future outlook, as well as condition of the local economy into the future.

Lolo had done so in January this year, but with many financial challenges and changes faced by the government in the first six months of this year, as well as the private sector, the governor made a verbal request to address the Fono on Monday.

The governor made the request during Thursday’s presentation from the governor’s Revenue Task Force to Fono leaders and several lawmakers, who were informed of specific revenue measures that were to be submitted to help address the government’s financial situation and improve the local economy.

Lolo told the gathering, which also included members of the task force and some cabinet directors that it’s important for the local government to depend on itself to finance its future, and not on the federal government, which is also faced with challenges as well as cuts in funding.

The governor noted briefly the financial problems faced by Puerto Rico and now faced by the US Virgin Islands. He says he doesn’t want to see that same financial situation for American Samoa.

According to The Associated Press, the government of Puerto Rico is unable to pay its debts to vendors as well as payments for government bonds.

To ensure American Samoa’s financial stability going forward, Lolo says it’s important that “we expand our economic base” and that “we depend on own hands” for survival.

He says the government is faced with financial challenges and then requested a chance to address the Fono on Monday, to provide an economic overview of American Samoa, ASG financial status, and proposed revenue measures, which would expand “our economic base” that will be submitted to the Fono for revenue and hopefully approved.

He says the revenue measures will help the government improve services to the public.

For the canneries, he says none of them are in a firm position at this time. At Samoa Tuna Processors Inc., which last December shut down its cannery operations, the governor says that the last time there was discussions with the company’s management and leaders, there didn’t appear to be any changes at this point and for Starkist, they are also facing various challenges.

He says it’s best that the government move forward with ways to improve ASG’s financial situation as well as the local economy. Additionally, the Revenue Task Force has come up with solutions.

Lolo also shared with the lawmakers that the fiscal year 2018 budget proposal that will be submitted to the Fono for review has a ceiling of 90% of the approved FY 2017 budget - for local revenues.

He says the FY 2018 budget proposal is focused on actual revenues collected in the new fiscal year, based on current data, and no longer based on forecasts – as was done in the past.

Additionally, the proposed revenue measures from the administration will further help the government going forward in the future.

Before Friday’s presentation ended, House Speaker Savali Talavou Ale announced the Fono joint session on Monday, and it will be held at the Gov. Rex Lee Auditorium.

Established by the governor in January this year, the seven-member task force is charged with reviewing and assessing the effectiveness of all existing revenue generating legislation with respect to the existing economic and financial environment.

The task force then recommends amendments to existing revenue generating legislation deemed to be obsolete and irrelevant in maximizing revenue generation.

See Monday’s edition for more details from the presentation by the ASG Revenue Task Force, which is chaired by Attorney General Talauega Eleasalo Ale, and members are: ASG Treasurer Uelinitone Tonumaipea; Budget and Planning Office director Catherine Aigamaua Saelua; Commerce Department director Keniseli Lafaele; Port Administration director Taimalelagi Dr. Claire Tuia-Poumele; Deputy Treasury for Revenue, Keith Gebauer; and the governor’s executive assistant Iulogologo Joseph Pereira.