Government of the Federated States of Micronesia

First FSM/US Preliminary Joint Budget Consultations Held in Pohnpei

Palikir, Pohnpei (FSM Information Services): March 23, 2012 - Officials from the US Department of Interior's Office of Insular Affairs and five governments of the FSM recently met in Pohnpei for Amended Compact Preliminary Joint Budget Consultations. Under the terms of the Amended Compact, Annual Budget Consultations between the US and FSM are meant to ascertain consistency with the funding requirements of the Amended Compact as well as the appropriateness of performance objectives and the adequacy of expenditures in achieving stated purposes. Since early years of the Amended Compact, budget consultations have typically occurred in late May to early June, utilizing draft implementation plans and proposed budgets, prior to finalized versions being consolidated by the FSM National Government and submitted to OIA by the required deadline of July 1st. In the three most recent budget development cycles, suggestions were made to SBOC's Division of Compact Management to hold advanced consultations, prior to Executive Budget Review Committee hearing sessions and budgets being finalized for submission to Congress and the four respective State Legislatures.

This year, to better assist with Compact budget formulation, particularly on those issues that have been directed by JEMCO, the Offices of SBOC and Insular Affairs scheduled the first ever preliminary joint budget consultations from February 13-15, 2012, followed by an FSM internal Budget Meeting on February 16th. In a Presidential letter to the four FSM State Governors inviting their respective State Budget Officer, Directors of Health and Education and other key representatives relevant to Compact budgeting, the purpose of the preliminary consultations was noted as being primarily focused on guidelines, utilization and implementation of the seven Compact Sector grants.

Among the issues discussed were effects of cuts made by JEMCO to Scholarships and the College of Micronesia-FSM's operational budget. Other priority concerns addressed ranged from infrastructure development and the FSM's allocation distribution formula, to Compact Impact and the FSM's undesirable tier 3 standing on the US Trafficking in Persons Report. The PJBC was also meant as a precursor to the upcoming Midyear JEMCO Meeting, scheduled for March 23, 2012 in Pohnpei.

For more information about the Preliminary Joint Budget Consultations, please contact the Division of Compact Management at the Office of Statistics, Budget and Economic Management, Overseas Development Assistance & Compact Management (SBOC) at (691) 320-6260 or email slowe@sboc.fm.