The world seems like it is about to plunge into World War 3. The Middle East is seeing Israel and Hamas or is it Palestine, in a war? In Asia, Taiwan and China are tense, North Korea is doing whatever it is they do, and here in Micronesia? We are waiting....
WHAT ARE WE WAITING FOR?
We, in Micronesia, specifically the Federated States of Micronesia (FSM) are waiting for our compact of free association with the United States of America to be ratified by the U.S. Congress. The 23rd FSM Congress ratified the compact on our end on July 18, 2023. Why has the U.S. Congress not ratified the compact, yet? Well, there is a good reason.
To avoid a government shutdown, due to the U.S. Congress not passing a budget (by October 1, 2023) U.S President Biden initiated stopgap measures to avert a shutdown and provide for temporary funding until the Congress does pass a budget. This is the reason why our compact of free association with the United States of America has not been ratified. Washington politics.
It is important to FSM because our critical sectors like education, health, and infrastructure receive economic assistance from this compact. The new amended compact increases the annual economic assistance from $80 million to $140 million.
Until the U.S. Congress passes and approves a budget; we will have temporary funding in the form of extensions of compact sector funds at 2023 levels.
This is not just an issue for the Federated States of Micronesia. The Republic of the Marshall Islands and the Republic of Palau are all in the same canoe.
MEANWHILE, BACK AT THE RANCH...
At the same time, in the FSM, the results of the 4th Micronesia Constitutional Convention have finally been stamped official by our President, and the implementation of these amendments is eagerly awaited. Chief among the eagerly awaited amendments is the revenue sharing of fishing license fees with the States of FSM. Before we go further, I would just like to touch on this issue.
Why did the people of the FSM have to vote to amend the constitution to allow for the sharing of fishing license fees collected in the FSM by the National Government? It would seem prudent and logical to share the benefits of a lucrative fishing industry with your own people?? In any event, the people have spoken, and the National Government MUST comply.
ANOTHER SITUATION UNFOLDING
In addition to that situation unfolding, a recent meeting of leaders from the National and State Governments in the State of Yap produced an agreement embodied in a joint communique that announced the "Arngel Formula". This formula concerned the sharing of compact funds between the State and National Government.
As described in the joint Communiqué and Resolution No. 1, the Arngel Formula states that the National Government will be allocated 8% of the economic assistance package under the 2023 Amended Compact, and the States will contribute to this allocation according to the percentages of the distribution formula under existing law (Public Law No. 18-57).
Upon returning to their respective home states, the State leaders were surprised and, in some cases, disappointed that the 23rd FSM Congress disregarded, or some could say, dishonored the "Arngel Formula". The 23rd FSM Congress decided to increase the 8% to 10%. There were no consultations or discussions with the States, just a decision among 14 lawmakers.
The President, who signed the Arngel Formula along with the Speaker of the 23rd FSM Congress vetoed the decision, but the 23rd FSM Congress just came back to override his decision, stating that with the decrease in funds due to the required sharing of fishing license revenue fees, the FSM National Government needs those extra $$ millions to sustain its bloated government operations that have no schools, no hospitals or emergency services.
Micro(nesian) Perspective
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