American Samoa's Budget Director, Malemo Tausaga, is forecasting a further decline in local revenues.
Mr Tausaga also adds benefits associated with the funding from American Recovery and Reinvestment Act will also dry up.
He says the local portion of the new fiscal year budget will be down five percent from 2011, and executive cuts are being made to department and agency budgets to combat the anticipated decrease.
Mr Tausaga says during financial adjustments, sacrifices are crucial.
All departments were given budget ceilings of five percent below their current year budgets.
