Government of the Federated States of Micronesia

Nena Asks Congress’ Permission For Use of Inflation Adjustments

PALIKIR, Pohnpei (FSM Information Service): May 19, 1998 – President Jacob
Nena, on May 15th, transmitted to Congress Speaker Jack Fritz,
a proposed bill to amend Section 345 of Title 55 of the Code
of the FSM which will allow the State of Pohnpei to use its previously
designated Compact inflation adjustment funds for capital account
to cover shortfall in it’s operating budget for FY 1998.

In a State and National Leadership Conference held at the
FSM Capital, it was agreed that Pohnpei State will use its FY
1997 Inflation Adjustment Funds to cover its shortfall, just
once. The state will make necessary adjustments in FY 1998 to
avoid repetition of a situation where it will again need the
Compact inflation adjustment funds to supplement the shortage
of operation funds.

Having failed to live up to its commitments made in the State
and National Leadership Conference, Governor Pangelinan has once
again requested the FSM President to assist him in getting the
permission for him to use the FY 1998 Compact inflation adjustment
funds.

Nena stated that the has received Chuuk and Kosrae’s favorable
support for the change and that he is waiting to hear from the
Governor of Yap.

“The urgency of Pohnpei’s continuing crisis requires
action on this proposal as early as possible during the upcoming
session,” Nena stated, referring to the current session.