The American Samoa Economic Development Authority (ASEDA) recently held its 2024 annual investor call, providing key insights into the territory’s financial outlook, economic diversification efforts, and the impact of federal funding initiatives.
The call, led by ASEDA Chairwoman Public Works Director Faleosina Voigt and attended by various department heads, addressed a broad range of questions from investors, shedding light on the current state and future prospects of American Samoa’s economy.
Deputy Treasurer Levi Reese highlighted the driving factors behind the fiscal year 2023 budget surplus, which included indirect costs from federal grants like the American Rescue Plan Act (ARPA), earned ARPA interest, and a significant increase in corporate taxes and penalties.
The corporate tax revenue nearly doubled from $21.4 million in 2022 to $46.4 million in 2023 due to improved compliance and penalty enforcement. However, the fiscal year 2024 has seen a negative budget variance of $14.3 million in the General Fund, attributed to corporations filing for extensions and payment plans. Despite this, initial indicators suggest that the fiscal year will close with a balanced budget, supported by supplemental revenues and cost containment measures.
Director of Commerce Petti Matila emphasized the territory’s efforts to diversify its economy through investments in broadband infrastructure, manufacturing, and tourism. American Samoa has upgraded to 5G networks, positioning itself as a leader in the Pacific region. Additionally, the territory has received $57 million in State Small Business Credit Initiative(SSBCI) funds to support local small businesses and encourage manufacturing.
Tourism initiatives focus on eco-tourism and sports tourism, with projects like the construction of a new multi-sports field approved by FIFA and the development of historical and landmark sites to attract visitors.
The ARPA funds, amounting to nearly $500 million, have been pivotal in addressing healthcare, infrastructure, and community development needs. Significant allocations have been made to improve healthcare facilities, including the construction of a new medical plaza and community health clinics. Investments in broadband infrastructure and water distribution systems also aim to enhance the quality of life for residents.
The investor call also addressed challenges such as the tracking of corporate taxes behind budget in early 2024 and the ongoing efforts to lobby against proposed marine sanctuary designations that could impact fishing grounds. The territory is optimistic about securing the renewal of StarKist’s federal tax exemption, which is crucial for the local economy.
KHJ News had emailed the ASEDA contact, Matt Dugdale if we could submit questions for the investor call but there was no response.
