JOINT ECONOMIC MANAGEMENT COMMITTEE
March 23, 2012
RESOLUTION JEMCO 2012-MT-1
Review of the Compact Fund Control Commission
RESOLVED, JEMCO extends its appreciation to all parties involved in the review for completing a thorough review and agreeing upon a sensible approach to modifying the role and responsibilities of the CFCC and Chuuk State’s financial management operations.
BE IT FURTHER RESOLVED, that JEMCO reaffirms the need to continue the CFCC as an independent monitoring body in Chuuk but with its responsibilities modified in consistency with the newly enacted CFCC Act and the other agreements reached as a result of the CFCC review.
BE IT FURTHER RESOLVED, the GFSM shall report on progress made in modifying and adjusting CFCC and DAS financial management responsibilities at JEMCO’s mid-year meeting in 2013.
RESOLUTION JEMCO 2012-MT-2
National Minimum Competency Tests
RESOLVED, JEMCO recognizes that the National Minimum Competency Test is the GFSM’s only standard assessment tool for elementary and secondary student performance. JEMCO further recognizes that the GFSM needs to develop clear policies and guidelines for the administration of the test, properly budget for the annual testing, and increase use of the test results to evaluate and improve student performance.
BE IT FURTHER RESOLVED, the GFSM shall develop guidelines for the administration of the National Minimum Competency Test (NMCT) to be applied to primary and secondary schools receiving Compact funds in all four states. The release of each year’s examination results shall be made available no later than August 1 of that school year. The GFSM shall submit its goals, guidelines, work plan, and budget for administration of the Fiscal Year 2013 NMCT to OIA by July 1, 2012.
RESOLUTION JEMCO 2012-MT-3
Independent Verification of Performance Indicators and Data
RESOLVED, that JEMCO reaffirms the need for reliable and quantifiable health and education data to evaluate performance outcomes, consistent with the Compact, as Amended, and to provide both the JEMCO and the GFSM with sound information to formulate policy, program, and fiscal decisions.
BE IT FURTHER RESOLVED, that to effect the routine review of data quality, the GFSM will conduct an objective, professional, third-party review of performance data. The selection of the reviewer and the proposed review methodology shall be undertaken following consultation with OIA. This review shall include an assessment of: (1) the appropriateness of the nation’s education and health data framework; (2) the soundness of processes used, whether manual or computerized; (3) the reliability of inputs to documentation; and (4) the verifiability of data at both points of entry and in abstracted reports.
BE IT FINALLY RESOLVED, that the GFSM shall report on the findings of the review at the next midyear meeting of JEMCO in March 2013. The report shall include steps taken by the National Departments of Education (NDOE) and Health and Social Affairs (DHSA) to address data vulnerabilities and a description of methods applied by the departments in incorporating annual monitoring of data quality in their information framework in FY 2014 and beyond. The FSM shall submit a full written description of the third-party review and, as applicable, essential solutions to OIA by July 1, 2013, for distribution to JEMCO in advance of the annual meeting in August 2013.
RESOLUTION JEMCO 2012-MT-4
Chuuk Education Reform Strategy
RESOLVED, in order for JEMCO to make sound policy decisions with respect to allocation of Compact Education Sector funds, it would benefit from a review and assessment of the Chuuk Education Reform Strategy.
BE IT FURTHER RESOLVED, no later than August 1, 2012 the GFSM will send a report to JEMCO through the Office of Insular Affairs (OIA) that assesses and validates progress in implementing the Chuuk Education Reform Strategy. The assessment shall be conducted by an independent individual or entity with requisite experience and qualifications in conducting such a review. The selection of the reviewer and the proposed assessment methodology of the reform strategy shall be undertaken following consultation with OIA. The report shall identify successes, delays and impediments in implementation of the Strategy. The report shall also give specific attention to identifying legislative, institutional, and operational barriers to the Strategy’s implementation and recommend practical remedies.
BE IT FINALLY RESOLVED, allocation by JEMCO of Fiscal Year 2013 Compact sector and SEG funds to Chuuk State will be contingent upon verifying the validity of elements of the reform strategy, and achievement of progress in implementing the Chuuk Education Reform Strategy.
RESOLUTION JEMCO 2012-MT-5
Ensuring Adequate Funding for MDRTB, Leprosy Elimination, and Reduction of Diabetes-related Hospitalizations
RESOLVED, JEMCO shall approve the Fiscal Year 2013 Health Sector Grant contingent upon the GFSM including in its budgets for Fiscal Year 2013 plans to achieve measurable impact to eliminate leprosy, the continuation of multiple drug resistant tuberculosis control efforts, and decrease the number of diabetes-related hospitalizations. JEMCO approval of Health Sector grants for Fiscal Years 2014 through 2017 will similarly be contingent on continued support for these specific programs.
BE IT FURTHER RESOLVED, the GFSM shall pursue activities to ensure effectiveness of effort and efficiencies within the health sector, and strengthen revenue enhancement efforts to augment sustainable funding for health services and programs.
RESOLUTION JEMCO 2012-MT-6
Honolulu Medical Referral Housing, Staffing, and Related Expenditures
RESOLVED, JEMCO no longer will allocate Compact funding for Honolulu-based operating expenses for medical referral coordination and the patient housing programs of the FSM states. The exclusion shall begin in FY 2013 and apply annually thereafter.
RESOLUTION JEMCO 2012-MT-7
Infrastructure Development Plan, Health Facilities, and FAA Matching Funds
RESOLVED, consistent with Article V (1)(e) of the Fiscal Procedures Agreement , the GFSM shall develop and submit to JEMCO a professionally prepared update of its Infrastructure Development Plan (IDP) to reflect GFSM priorities for new and reconstructed capital infrastructure to be financed by Compact funds. Insofar as Sector Grant funds are involved and prior to allocation of Public Sector Infrastructure assistance by the JEMCO, the IDP shall be subject to the concurrence of the JEMCO.
BE IT FURTHER RESOLVED, the GFSM shall conduct a comprehensive health-needs assessment and facility assessment of the Chuuk State Hospital and present its findings, recommendation and cost estimates to JEMCO upon completion of the assessment.
BE IT FURTHER RESOLVED, the GFSM shall submit to JEMCO for its review and concurrence a plan for the implementation of the Kosrae Hospital Project. The plan shall be based upon the “Site Scope Definition” prepared by BECA International Consultants Ltd. dated May 23, 2011.
BE IT FURTHER RESOLVED, the JEMCO will look favorably upon a request from the GFSM for the use of Public Sector Infrastructure funds for the purchase of an emergency stand-by generator for Pohnpei State Hospital.
BE IT FINALLY RESOLVED, no requests will be considered by JEMCO for GFSM matching funds of FAA AIP projects unless the following is included in future requests; 1) a clear description of local revenue efforts by the GFSM in providing matching funds to AIP projects, and 2) a revision by the GFSM to prevailing infrastructure project lists contained within the updated IDP that demonstrate the trade-offs of approving AIP projects against projects that would otherwise be funded with Compact sector assistance.
USG Policy Statement Regarding Long Term Planning in the FSM
Nikolao Pula, JEMCO Chairman
2012 Mid-Year Meeting
March 23, 2012
Although we have agreed not to pursue the resolution addressing the Long Term Planning and Economic Framework, we want to revisit the matter to make very clear the views of the United States with regard to the use of Compact funds to support sustainable essential services in health and education.
We all realize that the annual decrements to Compact operational funding make it impossible to maintain the current level of services provided by the four FSM States in healthcare and in primary and secondary education without changing the allocation of Compact funds, or by committing other revenues to those services.
Without a clear strategy proposed by the GFSM and embraced by the state and national leadership, JEMCO has a responsibility to ensure that adequate funding is dedicated to health and education in each of the four states. That is the intent of the resolution that we tabled this morning.
The GFSM has more options than JEMCO to ensure that adequate resources are available to the States for health and education. These options might include using the increased revenues generated by Comprehensive Tax Reform, increasing State shares of other nationally collected revenues, or by reallocating the percentage of Compact funds shared by the States and the National Government. These are choices that can be made by the GFSM, not by JEMCO.
JEMCO has fewer options. It has the authority under the Compact and consistent with the FSM Constitution to change the allocation of Compact funds among sectors and among the five funded governments. Most importantly, it can shift funds from the National Government to the States, moving funds from national offices to State education and health departments where services are delivered. The US believes that JEMCO is obligated to exercise this authority, if warranted, to assure that sustainable services are maintained.
That said, our preference is that the GFSM, through its Long Term Planning and Economic Framework makes the fiscal and program adjustments that will make one-sided JEMCO action unnecessary.
So we ask you to seriously consider the intent of the tabled resolution and take into account the views of the US as sector budgets formulated and as the impact of the decrements become more severe.