Government of the Federated States of Micronesia

Nena Asks Congress' Permission For Use of Inflation Adjustments

PALIKIR, Pohnpei (FSM Information Service): May 19, 1998 - President Jacob Nena, on May 15th, transmitted to Congress Speaker Jack Fritz, a proposed bill to amend Section 345 of Title 55 of the Code of the FSM which will allow the State of Pohnpei to use its previously designated Compact inflation adjustment funds for capital account to cover shortfall in it's operating budget for FY 1998.

In a State and National Leadership Conference held at the FSM Capital, it was agreed that Pohnpei State will use its FY 1997 Inflation Adjustment Funds to cover its shortfall, just once. The state will make necessary adjustments in FY 1998 to avoid repetition of a situation where it will again need the Compact inflation adjustment funds to supplement the shortage of operation funds.

Having failed to live up to its commitments made in the State and National Leadership Conference, Governor Pangelinan has once again requested the FSM President to assist him in getting the permission for him to use the FY 1998 Compact inflation adjustment funds.

Nena stated that the has received Chuuk and Kosrae's favorable support for the change and that he is waiting to hear from the Governor of Yap.

"The urgency of Pohnpei's continuing crisis requires action on this proposal as early as possible during the upcoming session," Nena stated, referring to the current session.

For further information on this release, please contact:

FSM Office of the President
Public Information: Press, Radio, Video
P.O Box 34
Palikir Station, Pohnpei, FM 96941
Tel.: (691) 320-2548/2092
Fax.: (691) 320-4356