Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698748770171.pdf (Micronesia, Federated States of)
STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.

20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 The Honorable Wesley W. Simina Speaker, Twentieth Congress Federated States of Micronesia Fifth Regular Session, 2018 Dear Mr. Speaker: Your Committee on Transportation and Communication, to which was jointly referred Presidential Communication No.

20-211 begs leave to report as follows: Presidential Communication No.
20-211 concerns the National Government’s proposed budget for fiscal year 2019 as set forth in the National Government Fiscal Year 2019 Proposed Budget (“Budget Book”).

Pursuant to rule 7, section 4(b) of the Official Rules of Procedure of the Twentieth Congress of the Federated States of Micronesia, your Committee has limited its review to those portions of the proposed budget relating to matters under its jurisdiction.

These are: I.

Department of Transportation, Communications and Infrastructure a.
Operations i.

Administration ii.

Marine Transportation iii.

Civil Aviation iv.

Communication v. Infrastructure vi.

Project Management Unit SCRL 20-98/FY 2019 BUDGET/T&C COMMITTEE STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.

20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 II.

Grants, Subsidies and Contributions: a.

Department of Transportation, Communications and Infrastructure i. FSM Capital Energy ii.

Fueling & Provisions of Caroline Voyager & Navigator iii.
Asia Pacific Telecommunity (APT) iv.

International Telecommunication Union (ITU) v. International Civil Aviation Organization vi.

Micronesian Shipping Commission III.

Capital and Human Resources Development a.

Department of Transportation, Communications and Infrastructure i. FSM National Government Computer Network (Internet and Equipment cost for centralizing computer services) ii.

Outer Island Airport Improvement iii.

Woleai Runway Terminal Building iv.


Woleai Runway Additional Work v. Onoun Runway Overlay and Construction vi.

Sapwuafik Runway Rehab and Construction vii.

Mwokil Runway Rehabilitation viii.

Pingelap Runway Rehabilitation ix.

Operation and Dry-docking of Caroline Voyager and Micronesia Navigator x.

New Warehouse Building xi.

Capital Improvement Projects 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 commentary found in this report should be treated as policy for the guidance of the relevant departments, agencies and offices.

Your Committee conducted a series of public hearings following the convening of the Fourth Regular Session of the Twentieth Congress in May 2018.

The report and recommendations that follow are based upon the information -2- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.
20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 contained in the Budget Book and the input provided by witnesses at those hearings.

Your Committee’s findings and recommendations follow: DISCUSSION OF FY 2019 BUDGET The appropriations discussed below are presented, by department, office and agency, in the order in which they appear in the Budget Book.
The figures given for each department, office and agency include the figures from the budget book for the total amount appropriated by law for FY 2018 and the amount recommended by the President and the amount recommended by Congress for each entity for FY 2019.

Your Committee makes the following recommendations: I.

Operations a.

Department of Transportation, Communications and Infrastructure Detail by Division i.
Administration, Office of the Secretary FY 18 Appropriated Personnel Travel Contract OCE Fixed TOTAL #Positions 6 90,705 27,084 6,500 36,000 0 160,289 FY 19 President Recommended 119,439 37,779 6,500 40,000 15,000 218,718 Proposed Change 28,734 10,695 0 4,000 15,000 58,429 FY 19 Congress Recommended 90,705 27,084 6,500 36,000 10,000 170,289 6 0 6 -3- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.

20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 Personnel: An increase of $28,734 is sought.
A large portion of this is due to the significant salary increase to the secretary from $26,000 to $49,000.

The Committee finds the amount requested is not justified.

Travel: An increase of $10,695 is sought.

This is related primarily to a greater responsibility to travel to the states more often.
There is a trip to D.C. to discuss transportation need, travel to the states to discuss IDP projects, the FAA annual meeting, a trip to the Philippines to discuss international port security reports, meeting with the Coast Guard and to Suva for 2 annual conferences.

The Committee finds that the increase is not justified.

Contractual Services: No change is requested in this category.

Other Current Expenses: An increase of $4,000 is sought.

This is requested for representation funding for hosting guests.
The Committee finds that the increase is justified.

Fixed Assets: An increase of $15,000 is sought.

This is for computer upgrades and new furniture.

The Committee finds that the increase is justified.

ii.
ii.

Division of Marine Transportation Proposed Change FY 18 Appropriated FY 19 President Recommended 124,273 28,217 1,031,039 1,434,331 95,238 20,978 29,035 7,239 403,292 0 1,370,830 1,370,830 0 0 0 1,147,255 2,957,651 1,810,396 FY 19 Congress Recommended 124,273 20,978 1,031,039 0 0 1,176,290 Personnel Travel Contract OCE Fixed TOTAL #Positions 4 5 0 5 -4- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.

20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 Personnel: An increase of $ 29,035 is sought.
This is related to a salary increase for the Operation Manager that is already in place and approved in the supplemental.

The Committee finds the amount requested is justified.

Travel: An increase of $ 7,239 is sought.

There are additional state visits required for additional security assessments and Port Authority inspections.

The ISP requires that they support the states until they are in compliance.

In addition, the President request an overall assessment of all of the ports.
The Committee finds the amount requested is not justified.

Contractual Services: An increase of $403,292 is sought.

This amount is due to the fact Marine Transportation employees have not been eligible for MiCare.

These funds are to provide medical care for the employees.

No reason was provided as to why they are not receiving MiCare coverage.

The Committee finds the amount requested is not justified.

Other Current Expenses: An increase of $1,370,830 is sought.
The department was to provide a written response regarding the increase and no response was received.

The Committee finds the amount requested is not justified.

Fixed Assets: No change is requested in this category.

iii.
iii.

Division of Civil Aviation FY 18 Appropriated Personnel Travel Contract OCE Fixed TOTAL #Positions 3 62,241 29,877 40,000 0 0 132,118 Proposed Change FY 19 President Recommended (266) 61,975 36,680 6,803 80,000 40,000 15,000 15,000 10,000 10,000 203,655 71,537 FY 19 Congress Recommended 61,975 36,680 50,000 5,000 0 153,655 3 0 3 -5- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.

20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 Personnel: There is a small decrease in this category.
Travel: An increase of $ 6,803 is sought.

The increase is due to the fact they need to do inspections at airports in all the states and they have to meet with international inspectors.

The Committee finds the amount requested is justified.

Contractual Services: An increase of $40,000 is sought.

Additional funding is requested to assist with trainings and repairs and to fund a contract for a “specialist”, security trainer.

They would like to have more equipment and security contracts.
The Committee finds the amount to be excessive and approves a $10,000 increase.

Other Current Expenses: An increase of $15,000 is sought.

This request is for office supplies.

The committee finds the amount to be excessive and approves a $5,000 increase.

Fixed Assets: An increase of $10,000 is sought.

The request is for computer equipment.

The Committee finds the request is not justified.

iv.
iv.

Division of Communication FY 18 Appropriated Personnel Travel Contract OCE Fixed TOTAL #Positions 3 67,226 33,900 30,000 0 0 131,126 Proposed Change FY 19 President Recommended 1,135 68,361 46,300 12,400 0 30,000 0 0 5,000 5,000 149,661 18,535 FY 19 Congress Recommended 68,361 33,900 30,000 0 5,000 137,261 3 0 3 Personnel: An increase of $ 1,135 is sought.

The Committee finds the amount requested is justified.

-6- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.


20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 Travel: An increase of $12,400 is sought.

The request is to have technical staff travel to outer islands to assist school and health clinics per IPU/APD and JTB requirements.

The Committee finds the amount requested is not justified.

Contractual Services: No change is requested in this category.

Other Current Expenses: No change is requested in this category.
Fixed Assets: An increase of $ 5,000 is sought.

The request is for a computer and equipment.

The Committee finds the amount requested is justified.
v. Division of Infrastructure FY 18 Appropriated FY 19 President Recommended Proposed Change Personnel Travel Contract OCE Fixed TOTAL #Positions 13 209,067 72,942 186,965 12,600 0 481,574 237,481 28,414 133,142 60,200 231,465 44,500 8,900 132,000 132,000 755,588 277,014 21,500 13 0 13 FY 19 Congress Recommended 209,067 72,942 186,965 12,600 30,000 511,574 Personnel: An increase of $ 28,414 is sought.
This is a $10,000 request for overtime and $8,000 for a new inspector position, in addition to some raises for some staff.

The Committee finds the amount requested is not justified.

Travel: An increase of $ 60,200 is sought.

The request is because there are more projects that require more monitoring.

The Committee finds the amount requested is not justified.

-7- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.


20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 Contractual Services: An increase of $ 44,500 is sought.

The request is because there are new projects that will require additional maintenance.

The Committee finds the amount requested is not justified.

Other Current Expenses: An increase of $ 8,900 is sought.

The explanation provided was for “more consumables”.

The Committee finds the amount requested is not justified.
Fixed Assets: An increase of $132,000 is sought.

The request is for 4 new trucks because the ones they have are outdated.

The committee finds the amount requested is excessive and approves an increase of $30,000.

vi.
vi.

Project Management Unit FY 18 Appropriated Personnel Travel Contract OCE Fixed TOTAL #Positions 0 0 0 324,075 19,645 0 343,720 Proposed Change FY 19 President Recommended 466,256 466,256 96,355 96,355 68,100 (255,975) (1,045) 18,600 3,000 3,000 308,591 652,311 FY 19 Congress Recommended 39,791 0 0 5,000 3,000 47,791 8 8 2 Personnel: An increase of $466,256 is sought.

This is to create full-time positions from the contract positions and to fund additional positions.
Because the PMU is to be phased out and the work assigned to each state PMO, the Committee finds the amount requested is not justified.

The Committee approves the positions of Administrative Officer and IT Personnel and approves an increase of $39,791.

Travel: An increase of $96,355 is sought.

This is for monitoring the activities in the states, consultation with the states and writing and monitoring grants.

The Committee finds the amount requested is not justified.
-8- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.

20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 Contractual Services: There is a decreased amount of $(255,975) in this category because the PMU has requested the contract positions be changed to full-time employees.

No amount is approved for this category because the PMU is to be phased out.

Other Current Expenses: There is a small decrease in this category.

Fixed Assets: An increase of $3,000 is sought.

This request is for 2 new laptops.


The Committee finds the amount requested is justified.

II.

Grants, Subsidies and Contributions a.

Department of Transportation, Communications and Infrastructure i. FSM Capital energy (Utilities) FY 18 Appropriated 600,000 FY 19 President Recommended 600,000 Proposed Change 0 FY 19 Congress Recommended 600,000 No change is requested in this category.

ii.
ii.

Fueling & Provisions of Caroline Voyager & Micronesian Navigator FY 18 Appropriated 1,345,830 FY 19 President Recommended 1,345,830 Proposed Change 0 FY 19 Congress Recommended 1,345,830 No change is requested in this category.

-9- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.

20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 iii.
Asia Pacific Telecommunity (APT) FY 18 Appropriated 11,000 FY 19 President Recommended 11,000 Proposed Change 0 FY 19 Congress Recommended 11,000 No change is requested in this category.

iv.

International Telecommunication Union (ITU) FY 18 Appropriated 20,867 FY 19 President Recommended 20,867 Proposed Change 0 FY 19 Congress Recommended 20,867 No change is requested in this category.
v. International Civil Aviation Organization FY 18 Appropriated 28,050 FY 19 President Recommended 28,050 Proposed Change 0 FY 19 Congress Recommended 28,050 No change is requested in this category.

i. Micronesian Shipping Commission FY 18 Appropriated 25,000 FY 19 President Recommended 25,000 Proposed Change 0 FY 19 Congress Recommended 25,000 No change is requested in this category.

III.

Capital and Human Resources Development -10- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.
20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 a.

Department of Transportation, Communications and Infrastructure i. FSM National Government Computer Network (Internet and Equipment cost for Centralizing Computer Services) FY 18 Appropriated 100,000 FY 19 President Recommended 277,420 Proposed Change FY 19 Congress Recommended 177,420 100,000 An increase of $177,430 is sought.

The request is to connect all of the offices with fiber optics and to upgrade equipment.
The Committee finds the amount requested is not justified and no increase is approved.

ii.

Outer Island Airport Improvement FY 18 Appropriated 2,500,000 FY 19 President Recommended 2,500,000 Proposed Change 0 FY 19 Congress Recommended 2,500,000 No change is requested in this category.

iii.

Woleai Runway Terminal Building FY 18 Appropriated 0 FY 19 President Recommended 86,000 Proposed Change 86,000 FY 19 Congress Recommended 0 An increase of $86,000 is sought.
The Committee finds that these funds should be accessed from the $2,500,000 approved about for “Outer Island Airport Improvement”.

The Committee finds the amount requested is not justified.

-11- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.

20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 iv.

Woleai Runway Additional Work FY 18 Appropriated 0 FY 19 President Recommended 1,500,000 Proposed Change FY 19 Congress Recommended 1,500,000 0 An increase of $1,500,000 is sought.
The Committee finds that these funds should be accessed from the $2,500,000 approved about for “Outer Island Airport Improvement”.

The Committee finds the amount requested is not justified.

v. Onoun Runway Overlay and Construction FY 18 Appropriated 0 FY 19 President Recommended 1,500,000 Proposed Change FY 19 Congress Recommended 1,500,000 0 An increase of $1,500,000 is sought.
The Committee finds that these funds should be accessed from the $2,500,000 approved about for “Outer Island Airport Improvement”.

The Committee finds the amount requested is not justified.

vi.

Sapwuafik Runway Rehab & Construction FY 18 Appropriated 0 FY 19 President Recommended 500,000 Proposed Change FY 19 Congress Recommended 500,000 0 An increase of $500,000 is sought.

The Committee finds that these funds should be accessed from the $2,500,000 approved about for “Outer Island Airport Improvement”.
The Committee finds the amount requested is not justified.

-12- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.

20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 vii.

Mwokil Runway Rehabilitation FY 18 Appropriated 0 FY 19 President Recommended 100,000 Proposed Change FY 19 Congress Recommended 100,000 0 An increase of $100,000 is sought.

The Committee finds that these funds should be accessed from the $2,500,000 approved about for “Outer Island Airport Improvement”.
The Committee finds the amount requested is not justified.

viii.

Pingelap Runway Rehabilitation FY 18 Appropriated 0 FY 19 President Recommended 1,500,000 Proposed Change FY 19 Congress Recommended 1,500,000 0 An increase of $1,500,000 is sought.

The Committee finds that these funds should be accessed from the $2,500,000 approved about for “Outer Island Airport Improvement”.

The Committee finds the amount requested is not justified.

ix.
ix.

Operation and Dry-docking of Caroline Voyager and Micronesia Navigator FY 18 Appropriated 1,500,000 FY 19 President Recommended 1,500,000 Proposed Change 0 FY 19 Congress Recommended 1,500,000 -13- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.

20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 No change is requested in this category.

x.
x.

New Warehouse Building FY 18 Appropriated 0 FY 19 President Recommended 860,000 Proposed Change FY 19 Congress Recommended 860,000 200,000 An increase of $860,000 is sought.

The Committee finds the amount requested is excessive and approves an increase of $200,000.

xi.

Capital Improvement Projects FY 18 Appropriated 0 FY 19 President Recommended 0 Proposed Change 0 FY 19 Congress Recommended 1,200,000 The Committee allocates $300,000 to each state for Capital Improvement Projects.
CONCLUSION With the modifications identified above, your Committee on Transportation and Communication recommends authorizing those portions of the FY 2019 budget relating to matters under its jurisdiction, subject to the availability of funds, as determined by your Committee on Ways and Means.

-14- STANDING COMMITTEE REPORT NO: 20-80 RE: P.C.


20-211/T&C SUBJECT: FY 2019 BUDGET SEPTEMBER 20, 2018 Respectfully submitted, /s/ Victor V. Gouland Victor V. Gouland, chairman Alik L. Alik, vice chairman /s/ Florencio S. Harper Florencio S. Harper, member /s/ Ferny S. Perman Ferny S. Perman, member /s/ Dion G. Neth Dion G. Neth, member /s/ Wesley W. Simina Wesley W. Simina, member /s/ Joseph J. Urusemal Joseph J. Urusemal, member -15-