Congress of the Federated States of Micronesia

Congress session adopts compact budget, telecom measure and others

Palikir, Pohnpei (FSM Congress): June 7, 2010 - May sessions are traditionally referred to as Budget Sessions since it primarily focuses on the national government budget, especially the compact portion. Since its' convening of May 11th, the Congress has met with national Departments, Offices, Agencies and entities partially or wholly funded through the Compact of Free Association between the FSM and the United States.

The President's proposed national government budget for Fiscal Year 2010 is $53,044,445, with the compact portion of the budget at 4.3 million or 15%. The proposed FY-11 national budget is further apportioned as follows: 73.5% from Domestic Revenue; 8.3% from US Federal Programs; 2.2% from the Supplemental Educational Grant; 0.7% from other foreign assistance and the compact portion rounding out with 15.3%.

Congress had, through Congressional Resolution 16-96, approved the proposed 4,403,340 compact portion of the FY-11 national budget with a few changes. A total amount of 115,511 was deleted from the operations budget of the National Department of Education and transferred instead to the National Scholarship. Another change under the resolution is to reduce the requested Public Infrastructure Sector Grant to $0.

Other Resolutions adopted during the Fourth Regular Session include:

  • C.R. 16-73, to approve a ¥530,000,000 financial grant from the Government of Japan towards implementation of the project for Introduction of Clean Energy by Solar Electricity Generation System;

  • C.R. 16-83, to extend deepest sympathies and condolences of the FSM Congress to the family and friends of former First Lady Iris Green Falcam for a long and distinguished professional career serving the nation and the people of the FSM through the numerous roles she held and the capacity in which they were executed;

  • C.R. 16-85, to set the ceiling for estimated funds available for appropriation for Fiscal year 2010;

  • C.R. 16-87, to revoke the President's declaration of emergency for repair of the FSS Independence;

  • C.R. 16-89, to urge the President to restrict access to the FSM's Exclusive Economic Zone and to bid out fishing rights on an exclusive basis to one country;

  • C.R. 16-92, to approve the € 1.4 million financial assistance from the European community to the Eight Pacific ACP states for disaster management and risk reduction; and

  • C.R. 16-97, to approve a 6.85 million RMB (US 1million) financial assistance from the Government of the People's Republic of China towards the FSM Trust Fund.

Two nomination resolutions were also placed on the last day of session for consideration, but were defeated:

C.R. 16-82, the nomination of Marion Henry for the post of Secretary of Department of Resources and Development; and

C.R. 16-95, the nomination of Albert T. Welly for the post of National Elections Director.

Along with the Resolutions, Congress passed on second and final reading, the following Congressional Acts:

  • C.A. 16-34, is an Act amending certain sections of Title 21 of the FSM Code relating to the appointment, composition and term limits for the FSM Telecommunications Corporation Board of Directors;

  • C.A. 16-35, is an Act to change the use of certain funds previously appropriated for economic and social projects in the States of Chuuk, Pohnpei and Yap;

  • C.A. 16-36, is an Act to decrease the tax rate imposed on major corporations from 25.5% to 21%;

  • C.A. 16-37, is an Act to appropriate the sum of 78,000 to fund the needed repair of the FSS Independence and for the replenishment of the funds expended under the state of emergency declared on May 11, 2010;

  • C.A. 16-38, is an Act to separate the functions of the Insurance Commissioner and its Board from that of the Banking Commissioner and its Board, and for other purposes;

  • C.A. 16-39, is an Act to appropriate 764,615 as supplemental funding to the FY 2010 Budget.

And the final measure passed during the Fourth Regular Session of the 16th FSM Congress is:

  • C.A. 16-40, an Act to establish a National Merit Scholarship Program to assist selected high school valedictorians with annual funding toward their college of choice.

An exhausted Congress finally adjourned sine-die on May 30, 2010 with the adopted and passed legislative measures transmitted to the Office of the President for appropriate action.