The proposed cuts in the state block grant was at least 25 percent.
Koror State Governor Yositaka Adachi in an interview said that several projects funded by the grant will be put on hold.
Meanwhile, Kayangel State Gov. Edwin Chiokai for his part said that he does not agree with the proposed budget cut.
“I am not in favor of it, if they will cut 25 percent of the budget it will create a big problem of all the states.” Chiokai said.
The Kayangel State resources is coming from the block grant, fishing, boat rentals, permit and the tourists.
Chiokai said this is the same sentiment of the other governors.
In the proposed Fiscal Year 2011 budget, the government proposed $3,600,000 for the state block grants which the governors stated a 25 percent reduction in the previous budget.
Adachi said if the proposed cut will be implemented the Koror State Government (KSG) will have to make some adjustments on their state budget.
Among the 16 States, Koror has the biggest reduction of its grant amounting to more than $200,000.
Adachi said the Governors’ Association is planning to meet with the members of the House of Delegates to discuss the proposed budget cuts.
President Johnson Toribiong in an interview said the government should live within its means.
The slash is the budget is one way of saving money.
He also added that the state government will have to find other sources of revenues.
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