On November 15,
Congress passed Bill No. 17-192 appropriating a sum of $5,697,383.00 ($5.7
million) from the General Fund of the Federated States of Micronesia to fund
Congressional public projects at the four States and provide for Federal
Emergency Management Agency (FEMA) payments owed by the State Governments.
This bill,
which became Public Law No. 17-67, was vetoed on November 22 and overridden on
November 24.
The FEMA payment
portion of the legislation was a total of $1,497,383 – coming out from
delegation share in this manner:
$284,210 -- Yap Delegation
$15,197 -- Kosrae Delegation
$219,116 -- Pohnpei Delegation
$978,860 --
Chuuk Delegation
The FEMA
payment sections for Chuuk and Yap contained languages for repayments to the
FSM Government, for Chuuk and to certain Congressional projects, for Yap. For
Kosrae and Pohnpei, the legislation did not specify any repayment obligation to
the FSM Government or otherwise.
On the public
project side, an amount of $4.2 million was appropriated and divided equally amongst
the fourteen Congress Members. This would make available $300,000 for each
Member to fund various projects and activities itemized through sections 2, 3, 4,
and 5. Equal apportionment per Member in public project appropriations has been
the status quo for some time in spite of occasional protests by Members based
on population demographics and Congressional terms.
Presidential
Response to FEMA payments
After
reviewing the Act, the President asked Congress in his veto message on November
12, 2012, that the national government pool the FEMA reimbursement funds from
all the allottees in order for the President to reimburse FEMA in a lump sum, rather
than create a four-way split with different allottees among the states.
“Mixing FEMA
reimbursement with public projects allocations creates confusion. The FEMA
reimbursement – being an extension of the terms and conditions of US federal
grants – constitutes a different subject matter than local projects, which is
why I submitted a request on FEMA separately from any other supplemental
budget”, the veto message stated.
“… I
recommend that the national government pool all FEMA reimbursement funds from
the allottees as soon as possible in order for the President to reimburse FEMA
in a lump sum. A lump sum payment will avoid duplication of work and ensure
consistency in dealing with possible issues surrounding the reimbursement”, the
President further stated.
Item Veto
on Congressional Projects
As for the
rest of the legislation, fourteen line items for various projects and
activities were vetoed, which would reduce the $4.2 million project
appropriation by $149,600.
In
clarifying the basis for the vetoes, the President stressed his opposition of
“public expenditures that have little or no lasting impact on the economy” and
reiterated the need to link projects to the Nation’s Strategic Development
Plan.
“The
national agencies implementing public projects, and the States benefiting from
them, must formulate projects together. For the sake of transparency and the
involvement of the public whom we serve, public hearings and open consultations
are important”.
How could
effective planning of projects that worth millions be achieved in a short
period of time without the benefit of
review and input by intended government official implementers and beneficiaries
in various communities and organizations?
Could there
be a better system with regards public project appropriations to ensure they
nail the bull’s eye in bettering communities, improving lives and growing a
sustainable economy?
The
President said, “I urge Congress to develop clear standards for public projects
and social programs, tied to the Nation’s Strategic Development Plan, with
public hearings required to promote transparency”.
Congress
Override
On November
24th (Saturday), two days before adjournment of its 4th
Special Session, Congress overrode the President’s veto after the Congressional
Standing Committee on Ways and Means gave its recommendations to the plenary on
Friday through Standing Committee Report (SCR) No. 17-165.
In response
to the President’s view regarding FEMA payment, the committee report stated:
Your Committee finds the vetoes to be
grounded solely in policy. To justify vetoes of the FEMA payments, the
President alleges that certain items raise ambiguities and may be
unconstitutional on equal protection grounds. Your Committee finds this
argument unconvincing.
If indeed
the President’s observations on the FEMA payment arrangements were
“unconvincing”, leading to the override, one fact remained unexplained:
Why do Yap and Chuuk have to
reimburse their FEMA payments while Kosrae and Pohnpei do not?
As for the
fourteen items that were vetoed, the committee report stated that in the Ways
and Means Committee’s view, the vetoed items were “consistent with sound public
policy”. The committee disagreed with the President’s view that many of the
projects did not have strong linkage to the Nation’s Strategic Development Plan
and might have “little or no lasting impact on the economy”. However, one
cannot clearly figure out what “sound public policy” guided the committee’s views
and gave Congress the confidence in the vitality of the override.
In short,
overriding the President’s vetoes means each Congress Member now has $300,000
to expend until September 30, 2014. And, the FEMA reimbursements on behalf of
the states are available out of the general funds of the national government, through
the allocations to Congress’ public projects and social programs.
The overridden
public law has become Public Law No. 17-68.