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Congressman Faleomavaega announced today that he is testifying before the Fono concerning the relationship between ASG and the federal government.
“While I do not normally weigh-in on how ASG manages its budget given that my job is to get the federal funds and the Governor’s job is to manage both federal and local funds, I do feel the need to offer some insights that I believe will be helpful to our Legislature as it considers recent options proposed by Governor Togiola to increase taxes or reduce working hours of ASG employees,” Faleomavaega said.
According to Samoa News, ‘the Governor says the government is forecasting a $7.2 million shortfall in local revenues for the current fiscal year (FY 2011).” Also reported by Samoa News, Governor Togiola “blamed the federally mandated minimum wage increase…as a contributing factor to the drop in government revenues” and Samoa News states that this is a ‘similar message he delivered in his 2010 State of the Territory Address, where he pointed to the COS Samoa Packing closing in 2009, StarKist Samoa cutting its workforce, and small businesses that cater to the canneries having no choice but to close down.’”
Federal Funds
“In my statement which I made available to every member of the Fono and which I also forwarded to U.S. Senator Daniel K. Inouye, I address these issues point by point, and a full text of my remarks is included with this release,” Faleomavaega said. “But, regarding ASG’s fiscal failure, I would like to point out that from 2004-2009 ASG received over $905 million or nearly $1 billion from the federal government. These funds went directly to ASG for agriculture, commerce, education, energy, health, labor, transportation, etc.”
“Additionally, during the same time period, the federal government made payments of over $32 million to entities in American Samoa other than ASG, including the National Park Service, the U.S. Postal Service, the Small Business Administration, etc.”
“The federal government also paid out more than $577 million directly to the people of American Samoa for Social Security payments, veteran benefits, federal retirement benefits, additional child tax credits, procurement contracts, etc.”
“Simply put, since 2004, the American Samoa Government has received almost a billion dollars in federal funding for a population of only about 70,000 people and, collectively, the government and the people have received over $1.5 billion.”
“This accounting does NOT include the $24 million National Emergency Grant we received after the tsunami from the Department of Labor to put American Samoa back to work.”
“It does not include over $155 million which has been projected by FEMA for tsunami clean-up.”
“It does not include over $239 million the federal government has set aside for American Samoa from the American Recovery and Reinvestment Act.”
“Add these federal funds together and no one can conclude that the American Samoa Government is broke.”
ASG Local Revenues
“According to an audit, from 2007-2009 ASG collected about $225 million in local revenues from corporate taxes, individual income taxes, soda tax, military cover-overs, etc.”
“It is estimated that ASG will collect approximately $138 million from 2010-2011.”
“While I am not privy to how ASG manages it local funds, what I do know is that ASG’s local budget is generously subsidized by the federal government and, while it is not my decision to make, I do not know how this Legislature can support the Governor’s proposal to tax the people or reduce their working hours to cover a shortfall that should not exist.”
American Recovery and Reinvestment Act
“About the American Recovery and Reinvestment Act, (ARRA) as of January 7, 2011, about $240 million in funds from ARRA have been obligated for ASG to carry out several infrastructure projects in American Samoa that are critical to economic development, including more than $81 million in grant funding to ASTCA under the Distance Learning, Telemedicine, and Broadband Program. Of the nearly $240 million available, ASG has only drawn down about $55 million. Why?”
FEMA Funds
“The same can be said about FEMA funds. In response to the tsunami that struck American Samoa and devastated our villages and islands, FEMA has projected that the federal projected share for housing, infrastructure, hazard mitigation, and other assistance is about $156 million. As of September 17, 2010, ASG has drawn down about $46 million. Why?”
“While a federal match is required for some of this funding, FEMA did indicate that it would review the possibility of waiving the match, or lowering the match, if ASG submitted the request. I am not aware if ASG has done so.”
Medicaid Funding
“In addition to the $1 billion in federal funds ASG received from 2004-2009 as well as the almost $240 million in ARRA funds and $156 million in FEMA funds, on March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act (PPACA, P.L. 111-148), which provides critical assistance to strengthen the nation’s health care system. As a result of a joint effort by the Congressional Delegates, the Territories were included in this historic legislation.”
“Based on the current allocation (3%), American Samoa will have a $285.5 million cap over the 9-year period.”
“American Samoa may also opt in to the Health Care Exchange program and receive funding to create a competitive insurance marketplace for quality/affordable healthcare. American Samoa should receive about 25%, or $18.75 million, of the funds allocated for the territories, although this actual split is yet to be determined by DHHS. Should American Samoa opt out, the funding may be redirected towards Medicaid.”
“The new law also provides for an increase in federal matching responsibility under the Federal Medicaid Assistance Program (FMAP). The previous federal matching ratio of 50:50 has been increased to 55:45.”
Other Legislative Issues
“Regarding legislative issues for the 112th Congress, I will be working on matters affecting tuna, immigration, the high court, and other high priority initiatives for the Territory.”
“Recently, Mr. Renato Curto, Chairman of the Board and majority shareholder of
Tri-Marine, requested to meet with me to share his long-term plans for doing business in American Samoa. We met in my Washington office on Tuesday, January 11, 2011, and we have agreed to work closely together in revising 30A. We have also agreed to work on other initiatives that will keep our tuna industry operating in American Samoa for years to come.”
“I also met with Chairman Kim of the Dongwon Group in November of last year and, last week, StarKist’s current CEO has also requested an appointment and we will be meeting soon.”
“The people of American Samoa can be assured there is a joint effort underway to revitalize American Samoa’s tuna industry, and I am hopeful that the Fono will be a part of this process which will include keeping wages at 2010 rates now that our cannery workers have received a $1.50 per hour increase.”
“It is also my intent to address lingering issues involving immigration and the high court and I look forward to working with the Fono to resolve these matters. As always, I welcome any recommendations our Fono might have about this or other upcoming legislative initiatives for the 112th Congress, and my door is always open for further input and discussion,” Faleomavaega concluded.
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