Tuesday, March 18, 2014

President Mori encourages States to "set aside" additional Compact share for future use

FMIS (March 18, 20140): The State Governments saw an increase in their respective shares under the Compact Sector Grants when the Federated States of Micronesian National Government put into effect a new grant distribution that reduces its ten percent (10%) share to only five percent pursuant to Public Law 18-12.

In light of this law as well as the fact that the States have recently identified a long-term fiscal framework that in part addresses how to deal with decreases in Compact funding, President Manny Mori has urged the State Governments to consider setting aside their share under the 5% into their Compact Trust Fund.

In a recent meeting with Chuuk Sate Governor Johnson Elimo and House Speaker Innosenti Oneisom, Chuuk State expressed willingness to allocate its "new money" into the Trust Fund.  However, a formal communication in that regard has not been provided.

Responding to Senate President Mark Mailo on March 17, President Mori reiterated the idea of the set aside. He also indicated regarding the State's commitment on the set aside, "while I have received positive commitment from Governor Elimo, I am still awaiting a formal communication from him on that commitment."

The other States have yet to formally respond to the President on the same issue.

1 comment:

  1. I wonder why NG doesn't give up their share of 5% instead of giving the States 5 and then go backdoor to ask the States to give it back to the trust fund. I wonder of FSM's leadership rationale?