State governments are also divided into executive, legislative and judicial branches. The state executive branch is headed by a governor and a lieutenant governor elected by popular vote for four-year terms. Each state also has executive agencies performing a variety of functions, including resource and development, health, education, public safety, public works, public affairs, finance, planning and budget, and personnel. The elected state legislatures, like the National Congress, are unicameral. All four states have their own state supreme courts.
Municipal government exists at the village level.
Municipal leaders are most often village chiefs, though some are elected officials. Municipal governments have taxing authority and are able to regulate the operation of local businesses. It is important to note that the FSM's system of government recognizes a role for traditional leaders and customs. The councils play an important role in government, particularly in the selection of candidates for political office. Councils also have the right to review and veto any legislation affecting traditions and customs.