Some local officials believe that Chuuk’s financial crisis could result in an increase in the number of Micronesians settling in the CNMI, but Lt. Gov. Diego T. Benavente says the situation in the FSM state is not yet a “total threat.”
Benavente said he expects Federated States of Micronesia President Leo A. Falcam and Chuuk Gov. Ansito Walter to work together and address the state’s problems.
A newly released interim report disclosed that Chuuk is “technically insolvent” and has a total debt of $25.7 million.
A “complete financial failure” may recur similar to what had happened in 1995-1996, the report said.
Senate President Paul A. Manglona, R-Rota, expects Chuuk’s current condition to “hurt” the CNMI economy.
“It will surely have an effect on us. But we just do not know to what extent,” he said.
The situation in Chuuk may result in an increase in the unemployment rate there, he said. Further, Chuuk might restrict public health and public education services to its citizens, who would then migrate to the CNMI or Guam, Manglona said.
Education Commissioner Rita H. Inos said it will be a “big issue” if Chuuk’s economic condition will not improve.
“It could be a big problem for (the Public School System),” Inos said.
Under its Compact with the U.S., the FSM—Chuuk, Kosrae, Pohnpei and Yap—is an independent nation freely associated with America.
FSM citizens are allowed to migrate to the U.S. and its territories.
The federal government is obligated to reimburse the affected states and territories for the “impact” of this migration. However, the three most affected jurisdictions, Hawaii, Guam and the CNMI, have been complaining that they are not receiving adequate Compact Impact funds.
