12 Oct 2020

American Samoa facing Budget impasse

12:24 pm on 12 October 2020

The American Samoa Government is facing an unprecedented budget impasse.

The American Samoa Legislature Fono building in Fagatogo

The American Samoa Legislature Fono building in Fagatogo Photo: National Oceanic and Atmospheric Administration

The Governor and Fono are wide apart on a budget law to fund the government for the new fiscal year which began on 1 October.

The Fono has reduced Governor Lolo Moliga's budget by $US6.5 million citing that the government had not realised local revenue projections for the last several years and did not support the administration's view that Covid-19 funding would spur increased economic activity.

Governor Lolo has refused to sign the $US459.4 million budget bill that the Fono approved and sent him, two days before the new fiscal year began.

Instead he sent the bill back to the Fono and called a 15-day special session of the legislature for senators and representatives to work on the budget bill again.

He also issued an unprecedented executive order to continue government operations for 15 days while the Fono deliberates on the budget.