Government of the Federated States of Micronesia

FSM and US meet on nation's budget

Palikir, POHNPEI (FSM Information Services): July 12, 2004 - The Governments of the Federated States of Micronesia and the United States, today, began its two-day Joint Budget Review meeting in Palikir.

The Joint Budget Review meeting gathered the financial executives of the national government as well as the four state governments and designated officials from the U.S. Department of Interior and Office of Insular Affairs. The stated purpose of the meeting is to review FSM's consolidated budget for upcoming fiscal year 2005 which would then be further consolidated for transmittal to the Joint Economic Management Committee (JEMCO).

As the implementing arm of the amended Compact, JEMCO, is mandated to ensure the submitted National Budget complies with the US funding terms prior to the release of funds for the FSM. It is anticipated that JEMCO will holds its first official meeting in August.

The Joint Budget Review meeting is therefore intended to preface the JEMCO meeting by ironing out the particulars of the FSM's overall budget and relevant concerns.

Along with the Budget, agenda items for the joint meeting included:

  • Funding for Judiciary Branch trainings;

  • Details and restrictions of the various grants;

  • Status of Supplemental Education Grant (SEG); and

  • Updates on the two development plans: Infrastructure (IDP) and Strategic (STP).

Participants of the Joint Budget Review meeting included from the FSM side: Financial executives and officials from the national government and throughout the FSM of the Joint Budget Review meeting comprised of FSM's financial executives and officials, along with a U.S. delegation comprised of DOI and Office of Insular Affairs which include: Tom Bussanich - Compact Coordinator, Roylinne Wada - Health Sector Grant, Gerald Shea - Public Sector Capacity Grant, Stephen Savage - Public Sector Infrastructure Grant. In addition to the DOI/OIA participants were members from the U.S. Embassy in Kolonia: Thomas J. Hushek - Deputy Chief of Mission, and Lynne Pangelinan - Political and Economic Assistant.