Government of the Federated States of Micronesia

FSM President signs Congressional Act for Fiscal Year 2011 Budget to avoid Government Shutdown

Palikir, Pohnpei (FSM Information Services): October 1, 2010 - Late last night, at almost the 11th hour, President Mori signed into law the government budget for the 2011 fiscal year, for a total amount of $39,041,803. An amount which represents approximately $14,000,000 less than what he had originally submitted for, back in April 2010.

Congress transmitted their approved budget to Mori on the evening of September 29. Despite this surprisingly late transmittal from the legislative, Mori was determined to avoid a government shutdown today, the first day of the 2011 fiscal year. He worked late into the evening of September 30, with his Cabinet members, to ensure a speedy and intensive review of the 2011 budget under Congressional Act 16-48.

In his statement on the signing into law of the budget act, President Mori clearly underscored his disappointment with the manner in which Congress handled the entire process. He felt that not only was the executive branch not given the time to respond and negotiate appropriately with Congress; but more importantly, that the funding reductions made by Congress could lead the Nation to a potential economic crisis.

Congress effectively reduced funding in the following areas: social security and pension plans, national scholarship programs, infrastructure contributions, the FSM Trust Fund and FSM Development Bank. To obtain the detailed figures on budget reductions, as well as read the "Presidential Statement on the Signing of Congressional Act 16-48," in its entirety, please go to www.fsmpio.fm .

On September 30, Congress also finally transmitted to President Mori, Congressional Act 16-50. This act authorized the government to appropriate supplemental funding in the amount of $200,280 from the FSM General Fund for the fiscal year ending September 30, 2010. Mori's original request for supplemental funding had been in the amount of $342,530. The President was compelled to sign into law the Congressional Act appropriating $142,000 less than what was needed, as the authority to obligate the funds to pay the government employee salaries was to expire on that same day.

The supplemental funding had been sought by Mori principally to cover the payment of salaries of national government employees who for some, have not received their pay for the last two pay-periods, and for others, for the past one pay-period.

Again, Mori was quite dismayed that Congress finally approved this necessary supplemental funding on the last day of the fiscal year, when he had made an original request back in September 10, 2010. "These matters must not set a precedent for future actions required from Congress," said President Mori.


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
e-mail: fsmpio@mail.fm
http://www.fsmpio.fm/