Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697808579232.pdf (Micronesia, Federated States of)
STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.

21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 The Honorable Wesley W. Simina Speaker, Twenty-First Congress Federated States of Micronesia Fifth Regular Session, 2020 Dear Mr. Speaker: Your Committee on Resources and Development, to which was jointly referred Presidential Communication No.
21-253 transmitting the National Government’s proposed FY2021 budget, begs leave to report as follows: Presidential Communication No.

21-253 transmits the National Government’s fiscal year 2021 Proposed Budget (Budget Book).

Pursuant to rule 7, section 2(b), of the Official Rules of Procedure of the Twenty-First Congress of the Federated States of Micronesia, your Committee has confined its review to those items of the proposed budget relating to matters within its jurisdiction.
These are the budgets for: 1.

2.

3.

4.

5.

Department of Resources and Development; National Oceanic Resource Management Authority; FSM Banking Board; FSM Insurance Board; Grants, subsidies and contributions: a. Pacific Island Development Program (PIDP); b.
Forum Fisheries Agency (NORMA); c. Pacific Asian Travel Association (PATA); d. United Nations Development Program (UNDP); e. Micronesian Challenge Endowment Fund; f. Food Agriculture Organization; SCRL 21-74/R&D FY-2021 BUDGET STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.


21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 6. g. Western Forestry Leadership Coalition (WFLC); h. SPC Matching Fund; i. Micronesian Challenge; j. Micronesian Cruise Association; k. South Pacific Tourism Organization; l. International Renewable Energy Agency; m. Micronesia Trade Committee; n. Convention on Biological Diversity; o.

International Food and Agriculture Development; p. Micronesian Island Forum; q.
United Nation Industrial Development Organization (UNIDO); r. Micronesia Association for Sustainable Development; s. Micronesian Island Forum Membership Fee; t. Micronesian Island Forum Hosting; u. Pacific Festival (FSPAC); and v. WCPFC Membership Fee (NORMA).

Capital and Human Resources Development: a.


State & National Leadership Conference (SNLC); b. R&D Conference; c. Foreign Investment Data Management System; d. EXPO 2020 Dubai United Arab Emirates; e. Intellectual Property Rights (IRP) Regime; f. Development of a Coastal Fisheries Policy for the FSM; g. Development & Operation Framework to implement the National Seabed Resources Act of 2014; h. Tourism Conference; i.

Little Fire Ants (Wasmannia auropunctatat-LFA) Eradication, Control & Prevention; j.
State Strategic Action Plan for the FSM; k. National Social Indicators Survey; l. Localization of Sustainable Development Goals in the FSM; m. Enhancing Tourism; n. Commemoration of World Tuna Day –May 2020; o.

Electronic Monitoring Project -2023 T3 Challenge; p. Hosting of WCPFC Technical & Compliance Committee and Science Committee meetings; and q. Internship for students in the area of fisheries management.

2 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.


21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 This report and all previous and subsequent reports by this Committee should be treated as policy for this Nation as defined by the Congress.

It is your Committee’s intent that any comments found in this report should be treated as policy for the guidance of the relevant departments, agencies and offices in the obligation and expenditures of their respective budgets and implementation of their programs.
Your Committee conducted a series of public hearings virtually on Wednesday, July 15, 2020, Thursday, July 16, 2020 and Monday, July 20, 2020.

The report and recommendations that follow are based upon the information contained in the Budget Book and the input provided by the Secretary, Assistant Secretaries, Board of Directors for the FSM Banking Commission and FSM Insurance Commission, Commissioners, and staff of the various departments, offices, agencies and entities during those hearings.
On Wednesday, September 2, 2020, your Committee conducted its mark-up on the fiscal year 2021 budget for the divisions under the Department of Resources and Development, NORMA, the FSM Banking Commission and the FSM Insurance Commission.

Accordingly, the Committee recommends seventy percent cut in the travel based on the policy direction of the FSM Congress for this fiscal year.

3 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.


21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 I.

GENERAL DISCUSSION OF THE PROPOSED FY 2021 BUDGET For this fiscal year 2021, the total operation budget request is $1,552,617, as compared to FY20 appropriation of $1,548,527, an increase of $4,090.

There is one position (Accountant IV) requested under the Division of Statistics, but EBRC did not recommend.
By Speaker’s memo dated May 14, 2020, the recommendation is to reduce the travel category by 70% from the FY20.

On the basis of Speaker’s memo, the Department’s travel budget is at $96,082, and the four categories remain the same subject to the Committee’s discretion.

In the Grants, Subsidies and Contributions category, your Committee recommends $336,580, and for NORMA $381,397.

In the Capital and Human Resource Development category, your Committee recommends $3,676,955, and for NORMA $155,000.
Your Committee conducted its first public hearing on the Department of Resources and Development FY21 proposed budget on Wednesday, July 15, 2020.

Following are the recommendations.

I(a).

Office of the Secretary FY 2020 Appro.

FY 2021 Proposed FY21 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 3 $75,412 $50,784 $150 $15,640 $0 $141,986 $75,412 $50,794 $500 $21,515 8,993 $157,214 $75,412 $50,794 $500 $21,515 8,993 $157,214 3 3 3 Committee Recommends 75,412 15,238 500 21,515 8,993 121,658 Personnel – No change in this category.

There are three positions under this category.

Your Committee recommends $75,412.


Travel – In comparing to the fiscal year 2020 appropriation of $50,784, an amount of $50,794 requested and recommended for FY21, there is an increase of $10.

By Speaker’s memo to cut seventy percent in travel, your Committee recommends $15,238.

Contractual Services – No change in this category for three consecutive fiscal years, until this fiscal year, there is an increase from $150 to $500, an increase of $350.

Your Committee recommends $500.


4 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.

21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 Other Current Expenses – The FY20 appropriation is $15,640.

The requested amount this year is $21,515, an increase of $5,875 in this category.

Your Committee recommends $21,515.

Fixed Assets – No appropriation in FY 2020.

For FY 2021, an amount of $8,993 is requested.

Your Committee recommends $8,993.

II.


Tourism Unit FY 2020 Appro.

FY 2021 Proposed FY21 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.

Employees 2 $48,620 $40,178 $3,500 $13,200 $0 $105,498 $48,620 $53,290 $3,500 $16,095 $1,320 122,825 $48,620 $53,290 $3,500 $16,095 $1,320 122,825 2 2 Committee Recommends $48,620 $15,987 $3,500 $16,095 $1,320 $85,522 2 Personnel – No change in the Personnel.

Your Committee recommends $48,620.


Travel – In fiscal year 2020, an amount of $40,178 was appropriated.

This year, and amount of $53,290 is requested and recommended by EBCR, an increase of $13,211.

With the reduction of seventy percent, your Committee recommends $15,987.

Contractual Services – No change in this category.

The same amount appropriated last fiscal year is being requested.

Your Committee recommends $3,500.

Other Current Expenses – An amount of $13,200 was appropriated in FY20.
For this fiscal year, an amount of $16,095 is requested, an increase of $2,895 as compared to fiscal year 2020.

Your Committee recommends $16,095.

Fixed Assets – In FY 2020, there was no appropriation.

This year, an amount of $1,320 is requested to purchase computers.

Your Committee recommends $1,320.

5 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.

21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 III.

Marine Resources Unit FY 2020 Appro.


FY 2021 Proposed FY21 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.

Employees 3 $67,475 $41,016 $0 $14,200 $0 $122,691 $67,475 $59,628 $0 $19,176 $3,960 $150,239 $67,475 $59,628 $0 $19,176 $3,960 $150,239 3 3 Committee Recommends $67,475 $17,888 $0 $19,176 $3,960 $108,499 3 Personnel – The same amount appropriated in fiscal year 2020 is requested and recommended for fiscal year 2021.

No change in this category.

Your Committee recommends $67,475.


Travel – In comparing the fiscal year 2020 appropriation of $41,016 to fiscal year 2021 recommended amount of $59,628, there is an increase of $18,612 in this category.

Your Committee recommends $17,888 based on the 70% cut in travel.

Contractual Services – No funding appropriated in FY20.

This fiscal year, no funding is sought.

Your Committee recommends $0.


Other Current Expenses – An amount of $19,176 is requested and recommended for this fiscal year, as compared to $14,200 appropriated last fiscal year.

Your Committee recommends $19,176.

Fixed Assets – An amount of $3,960 is requested and recommended to purchase computers.

Your Committee recommends $3,960.

6 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.

21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 IV.
Agriculture Unit FY 2020 Appro.

FY 2021 Proposed FY21 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.

Employees 23 $321,431 $52,939 $0 $64,000 $100,000 $538,370 $321,431 $52,939 $0 $70,947 $4,840 $450,187 $321,431 $52,939 $0 $70,947 $4,840 $450,187 23 23 Committee Recommends $321,431 $15,882 $0 $70,947 $4,840 $413,100 23 Personnel – No change in this category.

Your Committee recommends $321,431.

Travel – No change in this category.


Based on the 70% policy reduction in travel, your Committee recommends $15,882.

Contractual Services – No change in this category.

Your Committee recommends $0.

Other Current Expenses - This fiscal year, there is an increase of $6,947, as compared to FY20 appropriation of $64,000.

The increase is for supplies and printing.

Your Committee recommends $70,947.

Fixed Assets – In FY20, an amount of $100,000 was appropriated to purchase vehicles.
This year, there is a request of $4,840 to purchase printers.

Your Committee recommends $4,840.

7 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.

21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 V. Division of Trade and Investment FY 2020 Appro.

FY 2021 Proposed FY21 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 4 $81,021 $53,418 $9,000 $14,000 $0 $157,439 $81,021 $53,448 $59,000 $27,754 $7,280 $228,503 $81,021 $53,448 9,000 $27,754 $7,280 $178,503 4 4 Committee Recommends $81,021 $16,034 $9,000 $14,000 $7,280 127,335 4 Personnel – No change in this category.

Your Committee recommends $81,021.

Travel – An amount of $53,418 was appropriated in FY 2020.

This year, the Division is requesting $53,448 and was recommended, an increase of $30.00.
Based on the policy to cut 70% on travel, your Committee recommends $16,034.

Contractual Services - In FY 2020, an amount of $9,000 was appropriated for the website maintenance.

This year, the Division requested $50,000 for an Economist, but EBRC only recommended the $9,000 for the website maintenance and not for the Economist.

Your Committee recommends $9,000.

Other Current Expenses - An amount of $14,000 was appropriated under this category in FY 2020.
This year, the Division has requested $27,754 and was recommended.

This is an increase of $13,754, and the justification is for the reproduction of brochures for the Dubai Expo.

At the mark up meeting, your Committee understands that the restriction on travel may prevent individuals to attend the Dubai Expo, thus the reproduction of brochures may not be needed.

But, if individuals can travel and attend the Dubai Expo, supplemental funding can be sought later.

Your Committee recommends $14,000.


Fixed Assets – No appropriation in fiscal year 2020.

This year, an amount of $7,280 is requested and recommended for the purchase of one laptop and 4 desktop computers.

Your Committee recommends $7,280.

8 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.

21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 VI.

Division of Energy FY 2020 Appro.

FY 2021 Proposed FY21 Recom Personnel Travel Contract.Serv.
OCE Fixed Assets Total No.

Employees 1 $26,774 $28,672 $200 $5,500 $2,000 $63,146 $26,774 $28,672 $200 $7,415 $3,320 $66,381 $26,774 $28,672 $200 $7,415 $3,320 $66,381 1 1 Committee Recommends $26,774 $8,602 $200 $7,415 $3,320 46,311 1 Personnel – No change in this category.

Your Committee recommends $26,774.

Travel – In FY 2020, an amount of $28,672 was appropriated.

The same amount is being requested for this year.

Again, with the 70% cut, your Committee recommends $8,602.
Contractual Services – No change in this category.

Your Committee recommends $200.

Other Current Expenses – An amount of $5,500 was appropriated last year.

This year’s request is $7,415, an increase of $1,915.

The increase is for more supplies.

Your Committee recommends $7,415 Fixed Assets – In FY 2020, the Division requested $2,000 to purchase a desktop computer, which was recommended.

This year the Division is requesting $3,320 for the same purpose.
The justification is that the computers currently used are outdated.

Your Committee recommends $3,320.

VI Division of Statistics FY 2020 Appro.

FY 2021 Proposed FY21 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.

Employees 19 $286,581 $24,816 $47,000 $61,000 $0 $419,397 $302,925 $24,836 $47,000 $68,851 $0 $443,612 $286,581 $24,836 $47,000 $68,851 $0 $427,268 19 19 Committee Recommends $286,581 $7,451 $47,000 $68,851 $0 $409,883 19 9 of 21 STANDING COMMITTEE REPORT NO.
21-61 RE: PRESIDENTIAL COMMUNICATION NO.

21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 Personnel – This year, the Division has requested a new position (Accountant IV), but EBRC did not recommend.

There are four vacant positions.

Your Committee recommends $286,581.

Travel – The FY2020 appropriated amount was $24,816.

For FY2021, there is a request of $24,836, which was recommended.

There is a minor increase of $20.00.

With the 70% cut, your Committee recommends $7,451.
Contractual Services – No change in this category.

Your Committee recommends $47,000.

Other Current Expenses – There is an increase of $7,851, as compared to the fiscal year 2020 appropriation of $61,000.

The increase is for more supplies.

Your Committee recommends $68,851.

Fixed Assets – No amount requested, same as last fiscal year.

Your Committee recommends $0.

VII.


NATIONAL OCEANIC RESOURCE MANAGEMENT AUTHORITY (NORMA) Your Committee conducted the NORMA’s FY21 budget hearing on Thursday, July 16, 2020.

Witnesses at the hearing included: Deputy Executive Director Mathew Chigiyal, Miss.
Moria Joseph, Administrative Officer II, Mrs. Liman Helgenberger, Assistant Director Fisheries Development, Mr. Okeen Ehmes, the Coordinator for the PROP Project, Mr. James Jamel, Assistant Biologist, Mr. Justino Helgen, Senior Fisheries Officer-Compliance Analyst, Miss.

Valerie Hawley, Fisheries Observer Administration Manager, Mr. Sohs John, Chief Budget Officer, and Assistant Secretary, Mr. Dwight Edward.
The figures shown in the chart below for NORMA include the total amount appropriated in FY 2020; the FY 2021 amount requested by NORMA, and the amount transmitted as recommended, as listed in the “FY 2021 Recommended” column in the “Budget Book”.

The last column is the amount recommended by your Committee for FY 2021.

10 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.

21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 FY 2020 Appro.
FY 2021 Proposed FY21 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.

Employees $658,705 $140,897 $168,150 $73,300 $0 $745,793 $247,475 $186,100 $75,800 $0 $1,107,630 $1,421,373 $1,255,168 29 $731,993 $375,880 $177,700 $75,800 $60,000 29 29 Committee Recommends 669,217 $74,242 186,100 75,800 0 1,005,359 29 Personnel – The amount appropriated in FY20 was $658,705 for 29 employees.

For FY 2021, the Authority requested $731,993, but EBRC recommended $745,793.
However, the exact figure is $669,217.

Your Committee notes that certain increases in salaries were recommended by the EBRC.

The justifications regarding the increase in salaries were not thoroughly discussed in the hearing.
The list of the 11 employees with their increase in salaries is provided herein in “bold” for ease of comparison: FY20 app FY21 prop FY21 recom Flores, Iniki Executive Secretary II Edward, Eliaser Martin, Prileen Debriefer Statistics and Compliance Analyst 10,937 10,937 10,937 10,937 12,060 12,060 Vacant Assistant Director/Fisheries Compliance Division 22,377 22,377 Helgen, Justino Helgenberger, Limanman Senior Fisheries Officer - Compliance Analyst Assistant Director/Fisheries Management & Deve.
Irons, Tosuo Jr. Debriefer Jano, Truman Port Sampler Coordinator Joseph, Moria Falieapiy, Yvonne Vacant Vacant Narruhn, Ricky Pangelinan, Eugene Administrative Officer II Fisheries Officer-VMS/VDS Analyst Tuna Data Entry Techician Fisheries Observer Trainer Observer Coordinator Executive Director James, Jamel Assistant Biologist 14,723 14,723 22,377 22,377 10,937 10,937 13,308 13,308 14,723 14,723 14,723 14,723 9,939 9,939 12,060 12,060 15,492 15,492 60,000 60,000 14,723 14,723 Phillp, Bradley Assistant Director/Fisheries Research Division 22,377 22,377 10,937 11,478 12,664 22,377 16,304 22,377 11,478 13,308 19,070 15,492 11,478 12,060 15,492 60,000 15,492 22,377 11 of 21 STANDING COMMITTEE REPORT NO.
21-61 RE: PRESIDENTIAL COMMUNICATION NO.
21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 Naiten Jr. Hawley, Valerie Fisheries Observer Administrative Manager 17,405 17,177 Sigrah, Francisco Debriefer Chigiyal, Mathew Yee-Ting, Miorida Inatio, Camille Movick Economist Deputy Director Manager Licensing Lebehn, Alfred IT/GIS Manager Vacant Welles, Jean Assistant Director/Corporate Services Division Vessel Day Scheme Administrator Albert, Ronna License Assistant Gilmete, Dan EM/ER Coordinator Adolf, Maverick Electronic Reporting Officer IT Developer Fisheries Officer-Competent Authority/CDS Filled Vacant Fringe benefit (15%) COLA At the mark-up meeting, the Committee recommends the increases recommended by the EBRC as transmitted.
Your Committee received a communication from NORMA, which explained that in a supplemental budget approved by FSM Congress (PL No.

21-147), the salaries of the Executive Director and the Deputy Director were increased by $20,000 each.

In the transmitted proposed FY21 budget, the salary for the Deputy Director remains at $35,000.
During the hearing of the NORMA’s FY21 budget, the gap in salary between the Executive Director and the Deputy Director was discussed; however, there was no concrete decision reached.

The Committee is well informed of the request to increase the Executive Director’s salary, but not the Deputy Director.

The increase of the Economist’s salary was also discussed during the budget hearing.

12 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.


21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 So the amount for 29 employees is $570,573, plus $68,484 for fringe benefits and $30,160 for COLA.

The total is $669,217.

Your Committee recommends $669,217.

Travel – In FY 2020, the amount appropriated was $247,475, and during the pandemic, the travel was reduced to $140,897 pursuant to Public Law No.

21-94.

The amount requested and recommended for FY21 is $375,880, but EBRC recommended $247,475.
Your Committee decreases the travel fund using the 70% cut, and recommends $74,242.

Contractual Services – In FY 2020, an amount of $168,150 was appropriated.

For the FY21 request, an amount of $177,700, but EBRC recommended $186,100.

The Office Rental is increased from $45,600 to $54,000.

Another increase is on the Web Hosting for Online Licensing System from $20,000 to $25,000.

The last increase is on the Housing for contractual staff from $8,400 to $12,000.

Your Committee recommends $186,100.


Other Current Expenses – The amount appropriated in FY 2020 was $73,300.

The request for FY 2021 is $75,800.

Your Committee recommends $75,800.

Fixed Assets – The Authority is requesting $60,000 for a new vehicle, but was not recommended by EBRC.

Your Committee recommends $0.

VIII.


FSM BANKING BOARD The figures shown in the chart below for the FSM Banking Board include the total amount appropriated in FY 2020; the amount requested by the FSM Banking Board for FY 2021, and the amount transmitted as recommended for FY 2021.

The last column is the amount recommended by your Committee for FY 2021.

13 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.


21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 FY 2020 Appro.

FY 2021 Proposed FY21 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 4 $93,068 $84,726 $22,225 $25,110 $2,000 $227,129 $120,032 $84,728 $32,442 $25,110 $3,500 $265,812 $93,068 $84,728 $32,442 $25,110 $3,500 $213,430 5 5 Committee Recommends 93,068 25,418 32,442 25,110 3,500 $179,538 4 Your Committee held a public hearing with the FSM Banking Board on Monday, July 20,2020.
Witnesses included: The Banking, Board member Joe Hambuchimai; the Banking Commissioner Mr. Jesse Giltamag, Mr. Pilika Palik, Banking Examiner, Mr. Dwight Edward from the Division of the Personnel and Mr. Sos John from the Division of Budget.

Personnel – The amount appropriated in FY 2020 was $93,068.

For the FY21 request, the Banking Board requested $120,032, an increase of $26,964, as compared to FY20 appropriation.

At the hearing the increase is to fund a new position (Credit Union Examiner).
Your Committee understands that the FSM Banking Board does not have the authority to regulate Credit Union, and did not recommend the amount requested to fund the new Credit Union Examiner, and recommends $93,068.

Travel – There is an increase in the amount of $10,217, as compared to the FY20 appropriation.

Based on the policy to cut 70% in the travel category, your Committee recommends $25,418.

Contractual Services – In FY 2020, an amount of $22,225 was appropriated.
For this fiscal year, an amount of $32,442 was requested and recommended.

This is an increase of $10,217.

The justification of this increase is to pay rental space.

Your Committee inquired how they arrived at the amount requested.

According to the Banking Commissioner, the price is based on the price of square feet even though they have not found a place yet.

Your Committee recommends $32,442.

14 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.


21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 OCE – The amount appropriated in FY20 was $25,110.

The same amount is being requested.

Your Committee recommends $25,110.

Fixed Assets – In FY 2019, an amount of $2,000 was appropriated in FY20 to purchase cabinets, filing drawers and conference tables.

For this fiscal year, an amount of $3,500 is requested for a scanner and a laptop.

Your Committee recommends $3,500.

IX.


FSM INSURANCE BOARD The figures shown in the chart below for the FSM Insurance Board include the total amount appropriated in FY 2020; the amount requested by the FSM Insurance Board for FY 2021, and the amount transmitted as recommended for FY 2021.

The last column is the amount recommended by your Committee for FY 2021.

FY 2020 Appro.

FY 2021 Proposed FY21 Recom Personnel Travel Contract.Serv.

OCE Fixed Assets Total No.


Employees 5 $131,531 $78,920 $347,175 $23,544 $52,100 $633,270 $162,729 $80,260 $362,175 $28,284 $2,200 $635,648 $131,531 $78,920 $347,175 $28,284 $2,200 $588,110 5 6 Committee Recommends 143,660 23,676 347,175 28,284 2,200 544,995 5 Your Committee held a public hearing on the FSM Insurance Board FY21 budget requests on Monday, July 20, 2020.
Witnesses included: Insurance Board member Joe Hambuchimai; the Insurance Commissioner Mr. Nakama Sana, Mr. Dwight Edward from the Division of Personnel and Mr. Sos John from the Division of Budget.

Personnel – The amount appropriated in FY20 was $131,531.

For FY21, the request is $162,729.

There is a request of $19,070 to fund a new Insurance Examiner, but was not recommended by EBRC.
The Insurance Commission explained that there was a change in the title of its Executive Secretary to Administrative Officer I.

The FY21 proposed budget reflected the change in title, but not the corresponding salary.

The additional administrative work of the current Executive Secretary led to the change in title.

Your Committee recommends the corresponding salary of $12,664.

Your Committee recommends $143,660.

15 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.


21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 Travel – An amount of $78,920 was appropriated in FY20.

For FY21, an amount of $80,260 is requested and recommended, an increased of $1,340, as compared to FY20 appropriation.

Based on the 70% cut, your Committee recommends $23,676.

Contractual Services – In FY 2020 an amount of $347,175 was appropriated.

For FY 2021, the request is $362,175, but was not recommended.
Your Committee recommends $362,175.

OCE – In FY 2020 an amount of $23,544 was appropriated.

This year there is a request of $28,284, which was recommended.

This is an increase of $4,470, as compared to FY20 appropriation.

Your Committee recommends $28,284.

Fixed Assets – In FY20 budget, an amount of $52,000 was appropriated to purchase two laptops and a server.

This year, an amount of $2,200 is requested for laptops/CPU.

Your Committee recommends $2,200.

VII.


GRANTS, SUBSIDIES & CONTRIBUTIONS Department of Resources and Development Grants, Contributions & Subsidies FY 2020 Appropri FY 2021 Proposed FY21 Recommends Committee Recommends a. Pacific Island Development Program (PIDP) b.
Forum Fisheries Agency(FFA) c. Pacific Asian Travel Association (PATA) d. United Nations Development Program (UNDP) e. Micronesian Challenge Endowment Fund f. Food Agriculture Organization (FAO) g. Western Forestry Leadership Coalition 15,000 0 0 0 0 0 15,000 0 $6,000 $6,000 $6,000 $6,000 $30,000 $30,000 $30,000 $30,000 $0 $100,000 $100,000 $100,000 $4,800 $6,800 $6,800 $6,800 $530 $530 $530 $530 16 of 21 STANDING COMMITTEE REPORT NO.

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21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 h. Matching to SPC Projects i. Micronesian Challenge j. Micronesian Cruise Association k. South Pacific Tourism Organization l. IRENA m. Micronesia Trade Com.

n. Convention on Biological Diversity (CBD) o.

International Fund for Agriculture Development (IFAD) p. Micronesian Island Forum (MIF) q.
United Nations Industrial Development Organization (UNIDO) r. Micronesia Associ for SD s. Micronesian Island Forum Membership fee t. MIF Hosting u. Pacific Festival Total Grants, Subsidies & Contributions for R&D $60,000 $10,000 $60,000 $60,000 $60,000 $10,000 $10,000 $10,000 $2,500 $2,500 $2,500 $2,500 $8,000 $8,000 $8,000 $8,000 $250 $30,000 $1,000 $250 $30,000 $1,000 $250 $30,000 $1,000 250 $30,000 $1,000 $500 $500 $500 $500 $15,000 15,000 15,000 $15,000 $1,000 $1,000 $1,000 $1,000 $0 $15,000 $50,000 $0 $50,000 $0 $50,000 0 $120,000 $100,000 $419,580 $0 $0 $321,580 $0 $0 $321,580 0 0 $336,580 During the mark-up meeting of the Committee, it was brought to its attention that the annual contribution to Pacific Island Development Programs (PIDP) in the amount of $15,000 was not requested for this fiscal year 2021.
Your Committee recommends the $15,000 for PIDP for this fiscal year.

OTHER GRANTS, CONTRIBUTIONS & SUBSIDIES FY 2020 Appropriation FY 2021 Proposed FY21 Recommended Committee Recommends 1.

Forum Fisheries $62,638 $62,638 $62,628 $63,000 Agency 2.

NORMA – WCPFC $257,284 $257,284 $257,284 $318,397 Tuna Commission Fee GRANT TOTAL FOR NORMA GRANTS, SUBSIDIES & CONTRIBUTIONS $676,864 $578,864 $578,864 $381,397 17 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.


21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 On August 19, 2020, the Executive Director of NORMA sent a communication to Chairman Dion Neth regarding the adjustment on the “Forum Fisheries Agency” and “WCPFC” line items.

The correct figure for FSM’s contribution to Forum Fisheries Agency is $63,000, and to WCPFC is $318,397.

Your Committee agreed to these adjustments, as they are considered arrears of previous years.

IX.
IX.

CAPITAL & HUMAN RESOURCES DEVELOPMENT BUDGET FY2020 Appropriate.
FY2021 Proposed FY21 Recommended Committee Recommends a. R&D SNLC $100,000 $60,000 $60,000 $0 $0 $0 $0 $0 $0 b. R&D Conference c. Foreign Investment Data Management System d. EXPO 2020 Dubai, United Arab Emirates e. Intellectual Property Rights (IRP) Regime f. Development of a Costal Fisheries Policy g. Development & Operation Framework to Implement Seabed Mining Act h. Tourism Conference 0 $0 $80,000 $103,000 $80,000 $103,000 $0 $136,800 $136,800 $0 $117,000 $117,000 $117,000 $0 $150,000 $150,000 $150,000 $0 $200,000 $200,000 $200,000 i.
Tourism Budget & Planning with the States j.

Tourism Public Awareness k. Little Fire Ants Eradication $0 $0 $0 $80,000 $80,000 $80,000 $20,000 $0 $75,000 $166,440 $0 $166,440 $0 $166,440 l. State Strategic Action Plan for the FSM m. Renewable Energy Development Project n. National Social Indicators Survey o. Localization of Sustainable Development Goals in the FSM $0 $60,990 $60,990 $60,990 $0 $60,000 $0 $0 $0 $0 $661,713 $661,713 $661,713 $320,812 $320,812 $320,812 18 of 21 STANDING COMMITTEE REPORT NO.
21-61 RE: PRESIDENTIAL COMMUNICATION NO.

21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 $250,000 $500,000 $100,000 p. Enhancing Tourism: Kosrae subsidy to Governor’s Office q.

Enhancing Tourism: Pohnpei r. Chuuk Visitor’s Bureau $120,000 $120,000 s. Chuuk EPA-Solid Waste Management Program t. Department of Agriculture Forestry & Conservation u.

Fisheries v. Chuuk Women’s Council (CWC) w. Chuuk Public Health-none communicable disease prevention, education and outreach x.
Enhancing Tourism: Yap State Other Capital and Human Resources Development $100,000 $30,000 $250,000 $30,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,000,000 $2,000,000 1.

Enhancing Tourism 2.

Conservation Society in each state 2a.

Kosrae State 2b.

Pohnpei State 2c.

Chuuk State 2d.

Yap State Total for R&D Dept.
NORMA a. NORMA –World Tuna Day b. T3 Monitoring c. Hosting of WCPFC, TCC & SC Meetings $0 d. Internship for Students in the area of fisheries e. FFC Meetings Total $50,000 $50,000 $50,000 $50,000 $1,700,000 $0 $0 $0 $0 $2,291,755 $0 $0 $0 $0 $4,136,755 $0 $0 $0 $0 $3,676,955 $25,000 $0 $0 $40,000 $100,000 $10,000 $40,000 $100,000 $10,000 $40,000 $100,000 $10,000 $5,000 $5,000 $5,000 $80,000 $105,000 $155,000 $155,000 $155,000 Your Committee did not recommend most of the line items under the Capital and Human Resources that relates to conferences.
Your Committee understands that travel is still restricted due to COVID-19 pandemic, so there is no need to hold such conferences.

If people can travel to the states, then the Committee would honor any supplemental 19 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.

21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 travel request for interstate conferences and not international conferences.
Your Committee did not recommend the funding for the Foreign Investment Data Management System.

The Committee felt that there is still a foreign investment bill that the states are still trying to understand.

Since the specific data management system is link to the bill, the Committee decided to hold off on this project.

Your Committee recommends the $200,000 requested for the ‘Development & Operation Framework to Implement Seabed Mining Act’ because the required regulation is needed.
Your Committee understands that the Department needs the assistance from the Department of Justice and relevant regional or international organization for this project.

Your Committee recommends the $2,000,000 for Enhancing Tourism, and proposes an apportionment of such fund as follows: 1.

Enhancing Tourism – Chuuk State $500,000 2.

Enhancing Tourism – Pohnpei State $500,000 3.

Enhancing Tourism – Yap State $500,000 4.


Enhancing Tourism – Kosrae State $500,000 CONCLUSION Your Committee on Resources and Development has carefully reviewed the President’s recommended FY 2021 budget and all information provided by the Executive and the entities under your Committee’s jurisdiction.
The recommended sums set forth above reflect your Committee’s recommendations on the level of funding for the designated activity, program or project for FY 2021, subject to the recommendations of the Committee on Ways and Means.

20 of 21 STANDING COMMITTEE REPORT NO.

21-61 RE: PRESIDENTIAL COMMUNICATION NO.


21-253 SUBJECT: FISCAL YEAR 2021 BUDGET/R&D SEPTEMBER 15, 2020 Respectfully submitted, /s/ Dion G. Neth Dion G. Neth, chairman /s/ Aren B. Palik Aren B. Palik, vice chairman /s/ Tiwiter Aritos Tiwiter Aritos, member /s/ Derensio S. Konman Derensio S. Konman, member /s/ Peter M. Christian Peter M. Christian, member Isaac V. Figir, member ____________________________ Victor V. Gouland, member 21 of 21