Dear Editor,
Every time we talk about the financial problems facing the American Samoa Government, the message seems to be the same: “there isn’t enough money.”
The Governor says revenues are down. Departments say they don’t have enough funding. The Fono debates where the money should come from. But where is the conversation about spending less?
In any private business, if your expenses are higher than your income, you have a problem. You don’t keep spending at the same level and simply keep asking where you’re going to find more money. You increase revenue, cut expenses, or do both.
That’s Business 101.
ASG is a government, but the basic financial principles don’t change. While we need to find ways to grow our local economy, we can’t keep trying to solve every financial problem by finding another source of revenue. At some point, we have to control spending. And this is where I think the Governor and the Fono need to be much more aggressive.
Don’t just tell us revenues are down. Tell us what you’re cutting. Don’t just tell us there isn’t enough money. Tell us what expenses you’re eliminating. Don’t just freeze hiring or limit travel for a few months. Tell us what the long-term plan is to reduce the cost of running government.
Every department should have to justify its budget. Every program should be reviewed. Every position should be examined. Contracts, consultants, overtime, travel, vehicles, fuel and other operating expenses should all be on the table.
If a program is necessary, explain why. If a position is necessary, explain why. If an expense is necessary, show us the value. And if something isn’t necessary, cut it. This isn’t about cutting essential services. It’s about identifying the spending that isn’t essential and having the political will to do something about it.
The private sector doesn’t have the luxury of operating this way. A business that continually spends more than it brings in eventually fails.
Government doesn’t have a magic money machine either. The money comes from somewhere. And when government spends more, taxpayers, businesses and future generations eventually pay for it.
The conversation needs to change! Stop asking: “How do we get more money?” Start asking: “Why does government cost this much, and what can we do to bring that cost down?”
The Governor and Fono have a responsibility to answer both questions. If ASG is serious about getting its financial house in order, then we need more than temporary spending restrictions and another search for revenue. We need a real examination of government spending.
Increase revenue. Reduce expenses. Eliminate waste. Make difficult decisions. That’s what every responsible business owner is expected to do. Why should government be any different?
That’s Business 101.
Sincerely,
Richard Wei
