Government of the Federated States of Micronesia

$1.02 Million for FY12 Supplemental Budget signed into law

Palikir, Pohnpei (FSM Information Services): December 20, 2011 - Congressional Act 17-28 was signed by President Manny Mori on December 5 to become Public Law 17-28, amending Public Law 17-19 which governs the fiscal year 2012 operational funding for the entire FSM National Government and subsidies for programs and other obligations for the national government.

Prior to the start of the November 17-24 Special Session of the 17th FSM Congress, President Mori submitted a supplemental budget request that proposes an increase of $3.17 millions to the FY12 already approved budget of $44,251,617. The requested amount includes investment subsidies to the FSM Trust Fund for $1 million dollars and the FSM Social Security Program for $800,000. Additional operation expenses of approximately $5,617 for the FSM Insurance Board and $10,000 each for the COM-FSM Board of Regents and the Department of Justice were also requested but denied by Congress.

Resulting from Congressional deliberations, what is compiled as supplemental budget in this public law allocates a total of $1,025,436 deriving from recent Compact Grants Awards received by the FSM Government pursuant to JEMCO review and approval and from locally generated revenues since the beginning of the current fiscal year. The approved supplemental funding include $121, 321 from local revenues directed to the Department of Health and Social Affairs; $335,172 from local revenue directed to the Department of Education; $360,000 from Compact Grants for infrastructure sector earmarked for a project that would enable the extension of Telecom's ADSL internet connection to some public schools throughout the nation, $200,000 from funds "available under the amended Compact from the health sector subject to receipt of Grant Awards under the amended Compact" to be used to conduct a survey of FSM citizens' impacts upon and contributions to certain United States jurisdictions where they are residing; $10,000 from local revenues to help fund the December 10-12 Micronesian Chief Executive Summit in Kosrae State; and $15,000 also from local revenues to be used for election ID card project undertaken by the FSM National Election Office.

According to the Ways and Means Standing Committee Report No. 17-73, an amount of $3.07 million dollars in domestic revenue along with $360,704 from Compact grants were available for appropriation before the start of the session. The amount is based on information provided to Congress by the Acting Secretary of Finance and Administration in a November 15 communication.

After the passage of this supplemental budget during the recently adjourned session, at least $2.4 million dollars remains available for allocation when Congress comes to its January regular session or in any subsequent session. There is no other explanation as to why Congress chose not to allocate funding for other requests as submitted by the President in spite of the availability of unallocated funds to date.