Living with a balanced budget

Removing the Territory’s “at risk” status with DOI (and other Federal Agencies) is dependent on ASG’s ability to live within a balanced budget for at least three years.  Unfortunately, the draw down of Federal moneys has been curtailed by Congress and, therefore, we face the reality that has been forthcoming about ASG and its ability to spend and plan wisely.

The Budget director says “we need money” and the Senate President says “the Senate will be unable to function with anymore cutbacks.”  Perhaps, reducing the ASG payroll and cutting salaries in FY2007 will help accommodate the budget shortfall.  Also, the Budget Director stated before the Political Status Commission of “having many contracts on my desk, but due to lack of funds I cannot possibly honor them.”

Common Cause believes the most difficult task for many department directors is dealing with the hidden costs that come with hiring too many incompetent people, running too many vehicles, paying for litigation that is a result of misuse of funds and negligence, and not addressing Federal deadlines for grant money.

Gasoline (as we all know) is a commodity that may help an agency save money.  Keeping vehicles parked during the evening hours rather than allowing employees to take them home can reduce gasoline consumption .  Further expenses could be saved and some revenue generated by the sale of gas guzzling vehicles. The savings in fuel and maintenance alone could be substantial.

Litigation due to negligence or misuse of funds is costly and although ASG departments are “mum” about the litigation they face, there is a need to factor in these costs when sustaining a balanced budget.  Unfortunately, our culture does not count the Fed’s penalties in their budget when funds from Washington are misused, nor the law suits of individuals who are affected by ASG negligence.

ASG has a history of not making timely FICA and Social Security payments resulting in unnecessary and substantial fines and fees. ASG does not carry car liability or collision insurance on their vehicles, (excepting for the semi autonomous ASPA and ASTCA agencies). ASG settles (after a considerable period of time) its obligations from the government (general) operation funds, further depleting its budgets.

Payroll deductions for banks and other businesses once offered as a benefit to its employees are now limited to a few vendors due to the lateness of payments.

Every director must scrutinize his or her budget so they understand the cost centers allocated by their funding and the allowable expenses for each cost center.  It may seem academic but many of the problems experienced by this government are simple provided every director did his/her job to deliver services within the amount of the allotted budget.

The general public is already doing its part by absorbing the increases in fees within ASG through LBJ fees, OMV vehicle registration fees, travel permit fees to Apia, inflating excise taxes, etc.

We await each ASG department’s contribution by incorporating budget cutbacks with as little diminishment of public service as possible. We call upon the House and the Senate to return to session with a seriousness that will scrutinize each budget for the sake of a balanced budget.

Within this past fiscal year, infighting between the Governor and the Senate President, and the Governor and our Congressman, has become it seems a way of life.  Yet, our “at-risk” status with the Feds is a reality that affects each and every one of us. The seriousness of these problems cannot be overstated -  they are substantial and real.

If we are to succeed in preserving what we already have and perhaps improve on our plight, then, our local leaders and congressman must address these issues, together, as leaders who care about our Territory and our people’s future.

Finally image is an important factor to consider when seeking funds for economic development, and as long as we are “at-risk” we cannot expect sympathy from those who know ASG’s continued inability to live on a balanced budget, allow corruption, nepotism, and its ongoing demonstration of disrespect for the law.

“As ye sow, so also must ye reap.” (The Proverbs of Solomon )