President Surangel Whipps Jr. submitted the proposed budget for FY 2024 to both houses of the Olbiil Era Kelulau (OEK) last Tuesday, July 11, 2023 before he departed to attend US Congressional hearings on the Compact Review Agreement legislation in Washington, D.C.
The FY 2024 budget proposal is nearly the same level of FY 2023, authorizing $111,274,799 and appropriating $99,518,779. This year’s budget is $99,455,000 including the two supplemental budgets.
Increases in the budget proposal cover additional government salary increase and state government block grants. The new budget items added in the FY 2024 proposal are the Micro Games, the Pacific Games, the Pacific Festival of Arts and the Mechesil Belau Conference. Other appropriations that were in the budget this year and appears in the FY 2024 budget are the PPUC subsidies (waste water and water subsidy, “Lifeline subsidy program” and $.10 /kWh of the AFPAC), COFA Review, Independence Day, Economic Development Plan and the $350k civil settlement for the death of Takisang.
Major subsidies that were not included in the FY 2024 budget are the Social Security Administration and Civil Service Pension Plan subsidies. In FY 2023, SSA received a $1,200, 000 supplemental and Civil Service Pension Plan received $1,800,000. No subsidies are budgeted this FY 2024 for the two semi-autonomous agencies.
The expected Compact Review Agreement funding of $20 million is included as source of revenue for this FY 2024 budget but the budget bill says it will drawdown $20 million money from the COFA Trust Fund as “stopgap” to fund the budget in case the approval of Compact Review Agreement legislation is not approved on time. Once approved, it will reimburse the $20 million from the Compact Trust Fund.
The FY 2024 budget bill restrict the sources of funds to various government revenue sources and the Compact Trust Fund. No loans or other debt instruments are projected to fund the FY 2024 budget.
Total projected revenues and financing for FY 2024 budget is $99,519,000, same financing level as FY 2023.