Upon careful review with the State Budget Officer, it was determined that the Legislature’s final budget exceeded the General Fund ceiling of $26,869,957.00 by $860,082.00, bringing total appropriations to $27,730,039.00. This action made the bill unbalanced — in direct violation of the Pohnpei State Constitution and applicable fiscal control laws, which require a balanced budget.
“I cannot and will not sign into law an unbalanced budget that violates our Constitution. My duty is to protect the financial stability of our government and the services our people rely on,” said Governor Joseph.
To bring the budget back into balance, Governor Joseph used his line-item veto authority and reduced appropriations in targeted areas. These adjustments lowered the total General Fund appropriation to $26,449,757.00, resulting in an unassigned balance of $420,200.00.
These strategic reductions reflect a careful balance between maintaining essential services and restoring fiscal discipline.
“Mr. Speaker, I respectfully urge your concurrence on these adjustments and that we continue to engage in constructive dialogue to address the remaining unmet priorities while ensuring fiscal discipline and sustainability.” Governor Joseph wrote.
The Governor has transmitted the line-item veto message to the Legislature. If the Legislature chooses to override, it will bear full responsibility for the consequences of exceeding the constitutional budget ceiling.
The Joseph/Movick administration remains committed to fiscal discipline, constitutional governance, and transparent communication with the public.
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