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CPA discretionary funds may lower in ’07
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Posted on Nov 23 2006
The Commonwealth Ports Authority’s discretionary federal funds may be reduced for fiscal year 2007 as most of this funding may be spent in Federated States of Micronesia.
This possibility was discussed with CPA during a recent meeting with the Federal Aviation Administration in Hawaii.
“The issue here is that it’s the last time year for FSM to receive this discretionary grant in 2007. So the idea is to give FSM projects a priority. It’s their final year to get it based on the law. FAA wants us to work with them on this matter,” said Norita in an interview this week.
He expressed willingness to work with the federal agency, saying that it would not impact the CPA’s annual entitlement funds of about $5.4 million.
“We’ll still get our basic entitlement funding of $5.4 million,” he said.
CPA usually gets another $5 million in discretionary funds a year.
Further, Norita said that, although FAA intends to prioritize FSM aviation-related projects next year, FSM would still be required to apply for it.
It means that if FAA does not see the projects a “priority,” the CNMI would keep its annual discretionary funds.
“It’s not really bad news for us,” said Norita.
The CPA has benefited significantly from FAA’s discretionary grants over the years.
All U.S. insular areas like the CNMI and Guam receive annual entitlement funds from FAA.
The discretionary funds are leftover entitlement funds that are up for competition among the insular areas.
