September 29, 2005

Office of Compact Management

The Office of Compact Management (OCM) announces that the Federated States of Micronesia FY 2006 budget has been approved. On September 15, the Joint Economic Management Committee (JEMCO) held a special teleconference in the FSM approving $79 million in FY2006 Compact allocations.

Over 30% of this year's funding will be used to support education. An additional 30% will fund high priority capital projects identified in the FSM's recently approved Infrastructure Development Plan.

Funding levels for FY2006 for the six sectors covered by the Compace will be:

JEMCO also decided that carryover funds from FY 2004 Public Sector Capacity Building, totaling about $1.3 million, will be used to improve financial management and procurement systems, performance reporting, and economic monitoring. The FSM Office of Compact Management and the US Office of Insular Affairs will develop a detailed implementation plan for these funds by November 30, 2005.