Pago Pago, AMERICAN SAMOA — The FY2026 3rd quarter year-to-date preliminary results report to Governor Pulaali’i Nikolau Pula shows that the American Samoa Government’s expenditures continued to outpace its revenues, with the Treasury commenting in its report that “spending trajectory may outpace actual revenue collections if not controlled.” 

In its report, the Treasury is advising the governor of the next steps that should be taken:

1 - With spending unfavorable to Budget more than 2%, by law, Governor will need to inform the FONO that as a result of spending activity and struggle with revenues, cost containment measures need to be enforced across ASG.

2 - Budget has issued a notice to Departments and Agencies that after July 30th, Budget will stop processing for the FY 2026 year to clear out expenses and limit expenditures in the quarter.

3 - Revenue (Treasury) is following up with revenue shortfalls seen in the quarter and addressing with Departments and associated vendors.

The report comes as the FY 2027 budget bill is currently being scrutinized in the Fono for passage.

BAD NEWS VS VERY SLIGHTLY GOOD NEWS

Overall, the report delivers bad news, flavored with very slightly good news.

The slightly good news, is that according to the report, ASG’s revenue performance improved during the 3rd quarter, as opposed to 2nd Quarter revenues, which were however down from 1st Quarter revenues that were incidentally higher than both 2nd and 3rd Quarters.

The bad news is that total 3rd Qtr Actual expenditures tallied $39,720,956 versus 2nd Qtr Actual expenditures of $38,227,661 or (3.9)%; versus 1st Qtr Actual expenditures of $37,731,274 or (5.3)%.

As a result, the YTD shortfall versus Budget is ($15,787,969) or (12.5)%. The report notes this is a slight improvement from the 2nd Quarter YTD of (13.2)%, due to a slight improvement in the 3rd Quarter.

The report continues that the General Fund was unfavorable to the tune of around $5 million from actual revenues collected of $ 91.5 million, mainly driven by Treasury, Port Administration, Search & Rescue and Miscellaneous Non-Departmental spending. This accounts for 90% of the shortfall.

“The majority of the YTD shortfall from the General Fund, according to the report “came from  Individual Tax collection of -$9,033,198, Corporate Tax collection of -$3,706,189, Excise Tax Collection -$2,113,474 and Indirect Cost -$1,709,109.”

It continues that “Other Fund revenue measures net unfavorable $1,570,545 from actual revenues collected of $17,565,610 or 8.9%, mainly driven by Fund 46 Airport expenditures.” This accounts for 10% of the shortfall.

“With the Other Funds, these are earmarked revenue from gross revenue collections that fund these accounts, most importantly, the debit service account for ASEDA.”

In summary, Treasury reports a YTD shortfall of -$6,572,110 based on the FY 2026 budget that was passed into law. In total, the YTD Budget is $123, 695,750 million, with Expenses & Encumbrances budgeted at $115, 679, 891. In terms of what is actually happening:

Actual Revenues are — $109,107,781 vs. Budget Difference — ($15,587,969)

Actual Exp & Encumb. to Revenues Difference — ($6,572,110)

The report offers a detailed breakdown of revenues and expenditures & encumbrances as per department. 

Noted is that unfavorable spending came mostly from these departments: Treasury at ($923,063) — driven by Property Insurance that was not budgeted, Port Administration ($274,066), Miscellaneous Non-Dept ($193,073), Search & Rescue ($100,251) and Visitor’s Bureau ($80,417). 

Special Programs running unfavorable (or in the negative) YTD are mostly from Ceremonial Activities — ($172,127), EOB Electricity/ Water — ($63,000), and the Airport General Fund Subsidy — ($111,140).