Help my Chuukese friends

It has come to my attention that the Chuukese community are living under the false pretense of FSM's Compact Impact funds. They are adamant that the Compact funds are being divided equally. 25% each state. Please break it down for us.

Also...they believe that the taxes and fees that are imposed on the fishing companies.. where does the revenue go?


  • Kaselehlie imapni,

    To the best of my knowledge, as an employee of Pohnpei Department of Education, I am 100% confident that each State DOE receives a distinct amount of Compact funding. PDOE's total budget (ESG, Education Sector Grant funding is about 7.5 million--and SEG, Supplemental Education Grant funding is another 2.5 million) is ~$10,000,000 per year, plus another ~$1,000,000 for Special Education funded by the US law known as IDEA.

    By contrast--don't quote me on these numbers--I believe Chuuk's DOE total budget is closer to $15,000,000 whereas Kosrae is somewhere around $3,000,000 and Yap is around $6,000,000. It's possible my numbers for each of the other State DOEs is off by some amount, but the takeaway for this example is that each State DOE receives different amounts of funding at least partly on the premise that they have vastly different student population numbers. Kosrae DOE, for example, has about as many students as PICS High School has--which makes sense as Kosrae is roughly the same size and population as, say, the municipality of Kitti in Pohnpei.

    Unfortunately I cannot say with much confidence or authority what the breakdowns look like for other sectors, so let's talk about the Office of Insulars Budget Justification Report. This is an annual and public document that describes precisely how much funding every single program funded by the US Office of Insular Affairs receives, as well as the reason (justification) for why.

    Let's look at this part of page 80 together:


    You'll notice the table with various figures. This table shows what the FSM (as a collective) received from the Compact in Fiscal Year 2017. For the 25 million in education, those numbers refer to the Education Sector Grant. Even without knowing the exact number each of the FSM states receive, since PDOE received ~7.5 million (and 7.5 times four = 30, higher than the Education Sector Grant), we can confirm that each state receives a different amount of money based on its size and its needs.

    You can view the OIA Budget Justifications Report here:

    There is a website called ( ) that advises that Chuuk is, in come capacity, underrepresented. It claims, for example, that Chuuk State brings in 8 million per year in local funding and FSM National brings in 100 million per year in funding. I do not know how accurate these numbers are, but I can tell you that if you work in an office--as I do--that you are taxed by the FSM National Government from your paycheck. I am not sure if Chuuk State taxes its workers on their paychecks.

    However, you will find that the FSM National Government's annual reports (up to FY 14, then they stop for some reason?) are included on the site. For the education sector in the FY 14 report, it advises:


    So, further evidence that--at least in education--each of the states receive a different amount of Compact funding.

    My apologies that I cannot offer you more information. I am not an expert in the Compact, and prefer not to dabble in its politics. (As an educator, I'm primarily concerned with student performance.)

    I hope my post has been of some use for you.

    Ni wahu,

  • Dick,

    You have my praise.

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