The Joint Economic Management Committee 2016 Annual Meeting
Press Release #1609-02
Palikir, Pohnpei FSM Information Services
September 6, 2016
On August 24, 2016, the Joint Economic Management Committee or JEMCO
held its annual meeting in Honolulu, Hawai’i. At the meeting JEMCO
approved the FY2017Compact Sector grant allocations.
budget request for the health and education sectors were fully funded by
JEMCO at $22,115,289 and $25,646,846 respectively. This is an 8 percent
increase for health and a 6 percent increase for education over the
FY2016 JEMCO allocations as the FSM States were able to update their
Long Term Fiscal Frameworks to incorporate the increased grant revenue
that the National Congress had created by zeroing out the allocation to
the National Government under the distribution formula.
public sector capacity building, private sector development, and
environment sectors budget requests were 94 percent approved with 7
small projects not approved and another 5 projects being partially
funded. The budget cuts made by JEMCO amounted to $478,994.
This was a considerable improvement over the FY2016 JEMCO
allocation which had seen $1.3 million cut from the State requested
budgets. This was a result of States responding to the grant manager’s
request to ensure requests met JEMCO resolution conditions as well as an
overall improvement in the quality of grant proposals.
significant improvement was once again achieved in the allocation of
infrastructure projects with a total of 11 schools and 13 dispensaries
for Chuuk. School projects in Pohnpei and Yap were also approved while
the key focus for Kosrae over the next three years will be on their new
hospital. For the first time since 2012, when accreditation issues
arose, JEMCO approved infrastructure projects for the College of
Micronesia against the prior year unspent funds. For the Chuuk Hospital,
Yap bridges, and Yap water wells requests, JEMCO required additional
information before they can consider these proposals. A virtual vote is
anticipated by FSM on these before the end of the 2016.
FY2017 prior year unallocated sector grant assistance for the States of
$19,493,559 in project grants was requested. JEMCO made an initial
allocation of $11,619,445 of grants, and as with the infrastructure
sector, there were some technical issues with some grant requests and it
is anticipated that a further $6 million will be
approved by JEMCO before the end of 2016.
Overall, the FSM was very pleased with the outcome of the JEMCO
annual meeting and acknowledges the hard work of officials in both FSM
and OIA for ensuring grant allocations lived up to State budget
expectations. The onus will
now be on the State Governments to implement their budgets in a timely
and effective manner.
For more detailed information about the 2016 Annual JEMCO
meeting, please contact the FSM Office of Compact Management at (691)