Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698746702458.pdf (Micronesia, Federated States of)
STANDING COMMITTEE REPORT NO.

22-14 RE: PRESIDENTIAL COMMUNICATION NO.

21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 The Honorable Wesley W. Simina Speaker, Twenty-Second Congress Federated States of Micronesia Second Regular Session, 2021 Dear Mr. Speaker: Your Committee on Education, to which was referred Presidential Communication No.

21-533 regarding National Government's Recommended FY22 Budget, begs leave to report as follows: Presidential Communication No.
21-533 was transmitted to Congress with the National Government Fiscal Year Budget ("Budget Book").

Pursuant to RULE 7, Section 3(b), of the Official Rules of Procedure of the Twenty Second Congress of the Federated States of Micronesia, your Committee has limited its review to those portions of the recommended budget relating to matters under it jurisdiction as follows: I.National Department of Education A.

Office of the Secretary B.


Division of Quality and Effective Education C. Division of Formal and Non Formal Education II.

Board of Regents COM-FSM III.

COM-FSM Treaty Obligation SCRL 22-19/EDUCATION COMMITTEE FY-22 BUDGET STANDING COMMITTEE REPORT NO.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 VI.

Grants, Subsidies and Contributions A.

Aid to Non Public Schools B.


Financial Assistance Students at CMI C. Financial Assistance Students at PCC D. National Scholarship Fund E. National Close Up Program F. National Merit Scholarship G. Aid to Students in Japan H. Caroline College & Pastoral Institute I. Faithalk Christian College J.

Aid for FSM Students in China K. Aid for FSM Students in Fiji VII.
Capital & Human Resources Development A. COM-FSM Operations B. FMI C. COM-FSM SEG D. COM-FSM Endowment Fund E. NDOE SEG Project F. School Accreditation Project G. Teacher Certification Project H. Development SLO Language Arts I.

Printing Science SLO J.

Assessment NMCT K. CELEP NDOE L. Public Health COM-FSM This report, and all previous and subsequent reports of your Committee, shall be treated as reflecting the policies of the Federated States of Micronesia, as defined by the Congress.
It is the intent of your Committee that any commentary found herein should be treated as policy for the guidance of departments, agencies and entities.

The findings of your Committee are as follows: - 2 - STANDING COMMITTEE REPORT NO.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 Introductory Comments Your Committee notes that the FY2022 Budget Book was transmitted to the Twenty Second Congress on April 1, 2021.
The items and funding for all matters under the jurisdiction of your Committee, as referenced in the President's Budget Book of April 1, 2021, are discussed below.

During your Committee's review of the Budget Book it has noted some inaccuracies, and these are detailed in the relevant portions below.
Your Committee has prepared it's recommendations for the above cited items on the following breakdown of funds: $922,672 from the Supplemental Education Grant (SEG) for the National Department of Education (NDOE) of which $366,598 is proposed for the operations of the Department, and the remaining for a project for the Department proposed at $556,074.

The amount of SEG available for the College Micronesia-Federated States of Micronesia (COM-FSM)is $698,948.

Pursuant to P.L.No.
Pursuant to P.L.No.

18-18-57 the funding available for NDOE from the Compact Education Sector Grant for FY22 is zero.

The funding available for COM-FSM from the Compact Education Sector Grant for FY22 is $1,000,000.

Beginning in April the Committee received information and documents from the National Department of Education, the College of Micronesia-Federated States of Micronesia, the Office of Personnel and the Department of Finance and Administration regarding the FY22 budget.
Public hearings were held on May 20, 2021 for the College of Micronesia-Federated States of Micronesia, and on May 25, 2021 and June 29, 2021 for the National Department of Education.

Witnesses at the hearings were representatives of COM-FSM, NDOE, the Office of the - 3 - STANDING COMMITTEE REPORT NO.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 President, the Department of Finance and Administration, the Department of Justice and the Office of Personnel.

It is clear from your Committee's review and the public hearings during the review period that the catastrophic impact on our Nation's education system of the coronavirus pandemic will be felt for some time.
Bearing this in mind your Committee issues the full report on the coming fiscal year budget, but notices it's intention to do oversight and monitoring throughout the coming fiscal year.

This Committee is particularly concerned that the National Department of Education and the College of Micronesia- Federated States of Micronesia complete their analysis of the post-2023 Compact funding period and alternatives based on the possible funding decreases.
FY22 Budget: Sources and Recommendations I.National Department of Education (NDOE) A.

Office of the Secretary Personnel Travel Contractual OCE Fixed Assets Total #Employees FY21 Appropriated FY22 President Recommended FY22 Committee Recommended 137,786 162,970 162,970 -0- 15,000 21,000 -0- 23,173 15,000 23,500 31,000 23,173 15,000 23,500 31,000 188,786 *255,644 *255,643 6 6 6 - 4 - STANDING COMMITTEE REPORT NO.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 *The Committee accepts all items funded at the levels recommended by the President and merely corrects the total calculation for the Office of the Secretary.
Personnel: Your Committee notes with satisfaction that the salaries of all positions have been correctly calculated in the Budget Book and that the President's recommended budget also includes the PSS salary increases for the employees covered under the system.

With the confirmation of the new Secretary the Committee expects movement on the primary initiatives.
The Committee also notes that the Secretary's credentials and experience are impressive, and therefore, warrant the salary as recommended by the President.

However, regarding the exempt salaries of department heads and their deputies and assistants the Committee strongly recommends that negotiations for salaries be held within a very narrow range with an upper cap not to exceed the salary for the Vice President of the Nation.
For these reasons, your Committee concurs with the President's recommendation of $162,970 for Personnel for FY22 for the Office of the Secretary.

Travel: At this time the world is still facing challenges due to the global pandemic, and travel internationally is unavailable due to the borders remaining closed in the Federated States of Micronesia.

For these reasons your Committee is adhering to the guidance to keep travel budgets at a minimum level.
Should conditions change, and it be determined necessary, additional funding may be recommended at a later time.

Some domestic travel is necessary and desirable, and this was confirmed by the Department of Finance and Administration representative who assisted in drafting the President's recommended budget for FY22.

The Committee was advised a formula is being used to determine the travel funding recommendations by - 5 - STANDING COMMITTEE REPORT NO.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 the President.

The Committee appreciates attention to detail as described by the Department of Finance and Administration and hopes to see this consistently applied in all departments.

In consideration of the above discussion, your Committee recommends, and concurs with the President, the amount of $23,173 for the Travel budget of the Office of the Secretary for FY22.
Contract Services: During the public hearing on the coming fiscal year budget NDOE confirmed to the Committee that the contractual services items in its proposed budget for the Office remain the same and funding levels are also the same as in previous years.

Your Committee is pleased to see fiscal responsibility, and therefore, the Committee recommends $15,000 for Contractual Services for the Office of the Secretary for FY22.
OCE: Your Committee notes that the small increase in OCE for the Office of the Secretary as requested for FY22 is due to anticipated costs of maintaining a new vehicle.

As the Committee is entertain funding for a new vehicle these additions are necessary.

Fuel and maintenance costs are increasing annually and the Committee recognizes the proposed increase as reasonable.

The remaining items remain the same as in previous years.
For the reasons articulated in this paragraph, your Committee recommends the funding for OCE for the Office of the Secretary for FY22 at $23,500.

Fixed Assets: The only item proposed in this category is a new vehicle for the Office of the Secretary.

The Committee has rejected this request for the past two funding cycles, however, after testimony from NDOE it appears the current vehicles are of an age that replacement is necessary, therefore, it does recommend the President's proposal.
Your Committee recommends - 6 - STANDING COMMITTEE REPORT NO.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 $31,000 for funding for Fixed Assets for the Office of the Secretary for FY22.

B.
Division of Quality and Effective Education FY21 Appropri ated FY22 Pres Recommen d FY22 Comm Recommend Domestic Revenue SEG Personnel 167,466 174,254 174,254 26,774 147,480 Travel 95,594 95,594 95,594 -0- 95,594 Contractual 111,157 107,000 107,000 15,002 91,594 OCE Fixed Assets 17,129 31,426 31,426 -0- 31,426 1,000 -0- -0- -0- -0- Total 392,3466 408,274 408,274 41,776 366,094 #Employees 8 8 8 1 7 Personnel: The Committee notes favorably that the salaries and benefits are correctly stated in the President's proposed budget for this Division, and that it includes the most recent PSS salary increases.
The positions and activities remain the same as in previous years.

At the May hearings NDOE advocated for an increase in salary for two positions and the Assistant Secretary.

Your Committee reiterates its long standing rule that any increases should be consistent and fair.

Any increase for the Executive branch should also be proposed by the President, therefore, it does not entertain this request.

For these reasons, your Committee recommends $174,254 in funding for - 7 - STANDING COMMITTEE REPORT NO.
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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 Personnel for FY22 for the Division of Quality and Effective Education with $26,774 to come from Domestic Revenue and $147,480 to come from SEG.

Travel: This Division is unique in that the travel is domestic and associated with the core initiatives funded by the Supplemental Education Grant.
Your Committee strongly supports the work being done in teacher certification, school accreditation and student testing.

Therefore, it supports the necessary travel to accomplish the goals in these areas, particularly after the disruption of the pandemic restrictions.

Therefore, the Committee concurs with the President and recommends $95,594 all of which to be funded by SEG.
Contract Services: As in previous years this category is dominated by the items of fuel and provisioning for the trips to the outer island schools.

Your Committee is committed to ensuring that the students in the outer islands receive a quality education.

Your Committee understands that the cost of making the trips has increased in the past year and agrees that some domestic revenue must be expended to adhere to the testing and school evaluation schedule.
Therefore, your Committee recommends $107,000 for FY22 for the category of Contractual Services for the Division of Quality and Effective Education with $15,002 from Domestic Revenue and the remaining $91,594 from SEG.

OCE: The cost of operations for the offices and technical equipment has increased over time, and this is reflected in the much increased proposal for FY22 in this category.

The Committee is satisfied with the need of the Division and the allocation of SEG funding for the increase.
It is for these reasons, your Committee recommends $31,426 for the category of - 8 - STANDING COMMITTEE REPORT NO.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 OCE for the Division of Quality and Effective Education for FY22 to be funded in its entirety by SEG.

Fixed Assets: The President does not recommend funding for this category for the Division and the Committee concurs.
C. Division of Formal and Non Formal Education Personnel Travel Contractual OCE Fixed Asset Total #Employees FY21 Appropriated FY22 President Recommended FY22 Committee Recommended 132,246 137,707 137,707 -0- 30,069 11,522 -0- 17,500 30,069 11,522 -0- 17,500 30,069 11,522 -0- 173,837 196,798 196,798 6 6 6 Personnel: The proposed positions and activities remain the same for this Division as in FY21.
There is a slight increase in the FY22 personnel cost reflecting the PSS salary increase as noted above in earlier sections.

Your Committee has voiced its concerns about this Division and the larger emphasis that has been placed on vocational instruction while basic literacy in reading, writing and math have not improved significantly.
While programs designed to assist young people in vocational and technical areas are important, the Committee strongly urges the Department to focus most of its efforts on the three core mandates to benefit all students.

For the reasons stated here, - 9 - STANDING COMMITTEE REPORT NO.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 your Committee recommends $137,707 for Personnel for the Division of Formal and Non Formal Education for FY22.

Travel: The Committee reiterates its commitment to revisit certain aspects of the budget for FY22 later during the upcoming fiscal year, the funding for travel being a primary consideration.
As the return to normalcy from the pandemic may be a few months or several months away it is not possible to predict how much travel will be accomplished during the first half of the fiscal year.

It is your Committee's strong belief that travel should be prioritized for activities domestically and witnesses from the Executive branch explained that was the intention in formulating the President's recommendation.
For these reasons your Committee concurs with the President and recommends the budget for Travel for the Division of Formal and Non Formal Education for FY22 at $27,500 at this time.

Contractual Services: The two items under this category remain the same and are proposed at the same funding level.

Regarding the position funded here, your Committee would like to see a manual or materials be made available from the guidance counselor for use in all the schools.
One difficulty facing our Nation's schools is distribution of valuable administration and course materials does not make it to all the appropriate individuals for utilization.

With the above noted comment, your Committee does recommend and concur with the President the $30,069 for Contractual Services for the Division of Formal and Non Formal Education for FY22.

OCE: The proposed funding for routine telephone, internet and office supplies remains the same as in the current fiscal year.
The Committee is agreeable to this request and recommends $11,552 for FY22 for the Division of Formal and Non Formal Education in the category of OCE.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 Fixed Asset: The Committee concurs with the President's recommendation of -0- in the category of Fixed Assets for FY22 for the Division of Formal and Non Formal Education.
This Division and NDOE must articulate a process for effective oversight of the core initiatives going forward after 2023.

Great uncertainty remains as to the funding levels that will be provided by the United States after that time.

Although of primary importance better performance and planning are essential.

OVERALL BUDGET SUMMARY FY2022-NATIONAL DEPARTMENT OF EDUCATION FY21 Appropri ated FY22 Pres.

Recommend FY22 Comm.


Recommend Domestic Revenue SEG Personnel 437,498 474,931 474,931 327,451 147,480 Travel 95,594 137,267 137,267 41,673 95,594 Contract 156,226 152,069 152,069 60,475 91,594 OCE Fixed Asset Total 48,651 66,448 66,448 35,022 31,426 1,000 31,000 31,000 31,000 0 739,169 861,715 861,715 495,621 366,094 #Employees 20 20 20 19 1 - 11 - STANDING COMMITTEE REPORT NO.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 II.
Board of Regents-COM-FSM The President recommends funding for the Board of REGENTS-COM- FSM at $120,000 for FY22.

This is the same level as the current fiscal year.

The Board of Regents-COM-FSM has navigated many critical issues in order to ensure our Nation's only institution of higher education remains accredited and serving the education and training needs of our citizens.
In the coming fiscal year the Board of Regents-COM-FSM will continue its executive search for a new college president, as well as, oversight regarding the accreditation process, policies and instruction.

The Committee agrees it must be given sufficient funding for these activities, and recommends $120,000 for the Board of Regents-COM-FSM for FY22.

III.
III.

COM-FSM Treaty Obligation Resources: Grants, Subsidies and Contributions The President recommends $25,000 for the COM-FSM Treaty Obligation for FY22, which remains the same as in previous years.

The Committee concurs with this recommendation.

IV.

NDOE: Grants, Subsidies and Contributions FY21 Appropriated FY22 President Recommended FY22 Committee Recommended 1,000,000 1,000,000 1,000,000 Aid students Non Public schools - 12 - STANDING COMMITTEE REPORT NO.
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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 Financial assistance students-CMI Financial assistance students-PCC National Scholarship Close-Up Program Merit Scholarship Financial assistance students-Japan Caroline College and Pastoral Institute Faithwalk College Financial assistance students-China Financial assistance students Fiji COM Board Meeting - 13 - STANDING COMMITTEE REPORT NO.
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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 Xavier High School 75,000 -0- -0- Total 5,160,000 5,080,000 5,080,000 The Committee notes that items and funding for this section is recommended at approximately the same for FY22 as the current fiscal year.
During the public hearing the Committee heard from the Post Secondary Specialist at the Department of Education regarding the balances for scholarships and other financial assistance for our students in higher education.

Although many of these items have significant balances currently these will be used for fall 2021 tuition prior to the close of this fiscal year.

Students have remained studying overseas during this pandemic period or studying remotely with their various institutions.
When questioned about the need for more or less funding the Post Secondary Specialist stated that particularly for the National Scholarship there is always more need than funding and students continue to receive only a portion of the total cost of their education.

Your Committee remains very supportive of our students and will endeavor to secure additional funding for this area during the fiscal year, if it becomes available.
The especially requested funding for Xavier High School for FY21 has not been renewed for FY22.

It's also noted that a reduction of $25,000 is requested for the Merit Scholarship as there is one fewer student this coming academic year.

The Committee is agreeable with a slight reduction in the recommended for this section for FY22, and therefore recommends $5,080,00 for the Grants, Subsidies and Contributions section for FY22 for the Department of Education.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 V. Capital and Human Resource Investment FY21 Appropriated FY22 President Recommended FY22 Committee Recommended COM-FSM 3,800,000 (*1,000,000 from Compact Sector) 4,000,000 (*1,000,000 from Compact Sector) 4,000,000 (*1,000,000 from Compact Sector) 919,392 689,948 285,000 875,611 689,948 556,074 919,392 689,948 285,000 -0- 250,000 250,000 556,074 556,074 556,074 250,000 431,877 431,877 168,000 205,273 205,273 FMI COM-FSM SEG COM-FSM Endowment Fund COM-FSM Public Health Initiative NDOE SEG Project School Accreditation Teacher Certification NMCT Project 112,740 140,312 140,312 Science SLO printing SLO Language Arts -0- 75,000 75,000 -0- 232,214 232,214 - 15 - STANDING COMMITTEE REPORT NO.
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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 development CELEP Total -0- 50,000 50,000 6,452,373 7,835,090 7,835,090 During the May regular session of Congress your Committee received information from COM-FSM and heard its annual budget hearing for the coming fiscal year.

At that time it heard from the College regarding its domestic revenue request, as well as, the SEG and Compact Sector requested funding.
The College continues to offer courses online to accommodate the disruption caused by the pandemic and to further reach new student populations.

The goal is to offer most of the 2021 fall semester in person and to "normalize" administration and student activities as much as the ever evolving situation allows.

The College leadership remains hopeful that the stalled search for the new COM-FSM President can resume shortly.
Likewise, some infrastructure projects have been delayed due to the closed borders and the Committee looks forward to progress on these in the near future.

There are slight increases recommended by the President and these were satisfactorily explained as increased costs of maintaining the facilities and costs associated with the pandemic.

The increase in funding requested for operations of COM-FSM and FMI are commensurate with general price increases and inflation.
The Committee notes with pleasure the expansion of programs and advanced certification now offered by FMI.

It is impressive that at this time of extreme challenge and uncertainty the administration and instructors at FMI have found a way forward to maintain excellent instruction and expand service.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 During the public hearing NDOE presented a concise summary regarding the necessity of reaching out to all of our Nation's schools and evaluating the stalled student testing or NMCT, as well as, making sure the test is administered at the close of the school year.
Your Committee understands the disruption to the testing process and the student instruction means getting this program back into a routine is very important.

It also concedes that fuel and provisioning of the ships is increasing annually.

Your Committee, therefore, concurs and recommends $140,312 for the NDOE student testing, NMCT for the coming fiscal year FY22.

In the past year plans were finalized by NDOE for developing a new language arts curriculum.
This project needs to go forward to update the course for all schools across the Nation.

A budget was recommended for this curriculum development of $232,214.

The Department submitted a detailed budget and activities breakdown to your Committee.

This funding would be used by the project as follows: travel $120,214, contractual services $75,000 and consumable expenses $37,000.
These routine curriculum development projects should go forward in the coming fiscal year and are a sign that some activities may be able to normalize after the long pandemic pause.

In light of the above information your Committee recommends $232,214 for FY22 for the NDOE curriculum development of language arts.

The printing of the new Science Student Learning Outcomes should be done now as this project has been completed and these are ready for distribution to all of the schools.
The Committee concurs with the President and recommends $75,000 for FY22 for the printing of the Science SLOs.

The Division of Special Education has been mandated to contribute local revenue in a small percentage in order to - 17 - STANDING COMMITTEE REPORT NO.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 access a much larger grant.
Your Committee has been informed about the Certification in Education Leadership, Policy and Practice (CELPP) initiative in previous hearings.

This is a type of train the trainer program that could radiate throughout the country and impact all those who deal with special needs students.

The program would give intensive training to individuals who be responsible for bringing the skills back to others in their area.
Your Committee believes this is a small investment for accessing a much more costly training program.

It is satisfied with both the design and the contribution of $50,000 for the FY22 period and recommends this funding.

Another initiative that needs to restart in the coming fiscal year is the school accreditation process.

The Department submitted a budget of $431,877 for FY22.
This increased amount includes reaching out to all schools, either in person or remotely, and evaluating their current situation.

One of the concerns of the Committee has been the lack of adherence to minimum standards by many of our schools.

Basic education is a right given to all of our Nation's children.

The inequality between public schools, and especially private schools is striking.

The Committee urges the Department to do remedial evaluations and set plans for all schools underperforming.
Most of the budget is travel related expenses.

The Committee agrees this is an important initiative and supports it, however, it expects results.

Therefore, your Committee recommends the $431,877 for the school accreditation project for FY22.

Teacher certification has been disrupted but has continued on a modified basis this past year.

Much of the requested $205,273 for FY22 is printing ($164,329) and the remaining ($40,944) travel for the instructors.
This program needs to reach one hundred percent as soon as possible.

For many years the Committee has been advised that some teachers were not yet able - 18 - STANDING COMMITTEE REPORT NO.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 to attain the minimum requirements, but these teachers were reaching retirement age and a new generation of teachers would be fully certified.

After a decade this does not ring true.


The children of our Nation must be served by quality instructors.

The Committee recommends the $205,273 for FY22, but notices NDOE of its intention to do oversight on this initiative.

Conclusion Your Committee has carefully reviewed the President's FY22 budget and all of the information provided by the Executive and all entities under its jurisdiction.
The recommended sums set forth above reflect your Committee recommendation on the level of funding for the designated activity, program or project for all of the Fiscal Year 2022.

Subject to the conditions and limitations set forth herein, and subject to the concurrence of your Committee on Ways and Means, your Committee on Education recommends approval of the amounts and sources of funds identified as Committee Recommendations.

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21-533 SUBJECT: FISCAL YEAR 2022 BUDGET/EDUCATION SEPTEMBER __, 2021 Respectfully submitted, ____________________________ Joseph I. Urusemal, chairman ____________________________ Aren B. Palik, vice chairman ___________________________ Wesley W. Simina, membeR Edmond B. Moses, member ____________________________ ___________________________ ____________________________ Derensio S. Konman, member Florencio S. Harper, member ___________________________ Ferny S. Perman, member - 20 -