Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698747592798.pdf (Micronesia, Federated States of)
STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 The Honorable Wesley W. Simina Speaker, Twentieth Congress Federated States of Micronesia Second Regular Session, 2015 Dear Mr. Speaker: Your Committee on Transportation and Communications, to which was jointly referred Presidential Communication No.

19-579, begs leave to report as follows: Presidential Communication No.
19-579 concerns the National Government's proposed budget for fiscal year 2018 as set forth in the National Government Fiscal Year 2018 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.

Operations: A.


Department of Transportation, Communication, and Infrastructure 1.

Administration 2.

Marine Transportation 3.

Civil Aviation 4.

Communication SCRL 20-26/FY 2018 BUDGET/T&C Committee STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 5.

Infrastructure 6.

Project Management Unit II.

Grants, Subsidies and Contributions: A.

Department of Transportation, Communications, and Infrastructure 1.
Asia Pacific Telecommunity 2. International Telecommunication Union 3.

ICAO 4.

FSM Capital Energy 5.

Micronesian Shipping Commission (MSC) 6.

Fuel and provisions for Caroline Voyager and Navigator 7. International Maritime Organization III.

Capital and Human Resources Development: A.

Department of Transportation, Communications, and Infrastructure 1.

Dry docking of Caroline Voyager and Navigator 2.

FSM capital road, bridge and pavement drainage 3.

Outer island airports 4.


FSM National Government computer network 5.

FSM Capitol Complex (2-story building) 6.

New Warehouse Building 7.

Rehabilitation of all National Government buildings 8.

New backup generator 9.

Outstanding inaugural stage 10.

Y12 aircraft operation budget 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 First Regular Session of the Twentieth 2 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 Congress in May, 2017.
The report and recommendations that follow are based upon the information contained in the Budget Book and the input provided by witnesses at those hearings.

Your Committee's findings and recommendations follow: DISCUSSION OF FY 2017 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 2017, as set forth in Public Law No.

19-32, as amended, and the amount recommended by for each entity for FY 2018.

Your Committee makes the following recommendations.

I.

OPERATIONS A.

Department of Transportation, Communications, and Infrastructure Detail by Division 1.
Administration, Office of the Secretary FY 17 Appropriated FY 18 Recommended Proposed Change Personnel Travel Contract OCE Fixed Assets 0 Total 90,705 27,084 6,500 36,000 160,289 117,452 38,869 6,500 40,000 0 202,821 26,747 11,785 0 4,000 0 42,532 FY 18 Committee Recommendation 90,705 27,084 6,500 36,000 0 160,289 # positions 6 6 0 6 3 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.
20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 Personnel – An increase of $26,747 is requested to fully fund the salary of the Secretary of TC&I ($49,000).

Travel – An increase of $11,785 is sought to cover the increase cost of two return trips to Suva and a new itinerary of a return trip to LA.

Contractual Services – No change is sought from FY 2017.

Other Current Expenses – An increase of $4000 is requested which restores the 10% mandated decrease in FY 2017.
Fixed Assets – There is no fixed assets request.

The Committee feels that no increases are justified at this time.

2.
Division of Marine Transportation FY 17 Appropriated FY 18 Recommended Proposed Change Personnel Travel Contract OCE 95,238 20,978 1,031,039 0 204,111 28,217 1,402,518 1,345,830 109,173 7,239 371,479 1,345,830 FY 18 Committee Recommendatio n 95,238 20,978 1,031,039 0 Fixed Assets 0 0 0 0 Total 1,147,255 2,898,688 1,751,433 1,147,255 # positions 4 9 5 4 Personnel – Just as in FY 2017, the Division is requesting an increase to fund a new position: Manager of Transportation System Development Branch ($19,070).
Currently, the position of Assistant Secretary is vacant.

4 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 On August 18, 2017, the Department submitted a request (copy attached) for additional funding of $82,288 for 4 additional positions for the Caroline Voyager and Micronesian Navigators: specifically, 2 Chief Engineers and 2 Masters, plus their housing.

That request is incorporated under personnel above.
Travel – An increase of $7,239 is requested with no obvious explanation for the increase, as the trip itineraries remain the same.

Contractual Services – Increase of $371,479 is requested consisting of the following increases: 1) $10,000 increase for consultant fee; 2) $200,000 increase for contractual services; 3) $13,200 increase for Housing Crew: 4)$44,000 increase for insurance; 5) $52,107 increase for Personnel Contractual Services (MN Crew); and 6) 52,172 for Personnel Contractual Services (CV Crew).
Other Current Expenses – Just as in 2017, rather than funding fuel and provisions for the Caroline Voyager and the Navigator in the operational budget, your Committee has provided funding via a grant.

Fixed Assets – There is no fixed assets request.

The Committee feels that no increases are justified at this time.

3.
3.

Division of Civil Aviation FY 17 Appropriated 62,241 29,877 40,000 0 0 132,118 FY 18 Recommended 61,991 36,680 40,000 0 0 138,671 Proposed Change -250 6,803 0 0 0 6,553 FY 18 Committee Recommendation 62,241 29,877 40,000 0 0 132,118 Personnel Travel Contract OCE Fixed Assets Total 5 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.
20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 # positions 3 3 0 3 Personnel – The recommendation is a decrease of $250 from the FY 2017 line and the request is approved.

Travel – An increase in travel of $6,803 is sought, which consists of three new travel itineraries to/from Kosrae, Chuuk, and Yap “To provide FSM’s Aviation Security Regulation.” Contractual Services – Your Committee notes this is the same amount as the FY 2017 line and approves it as recommended.
Other Current Expenses – There is no other current expenses request.

Fixed Assets – There is no fixed assets request.

The Committee feels that no increases are justified at this time.

4.
4.

Division of Communication FY 17 Appropriated FY 18 Recommended Proposed Change FY 18 Committee Recommendation 67,226 Personnel 33,900 Travel 30,000 Contract OCE 0 Fixed Assets 0 Total 131,126 67,327 43,900 30,000 0 0 131,126 101 10,000 0 0 0 0 67,226 33,900 30,000 0 0 131,126 # positions 3 3 0 3 Personnel - Your Committee notes this is nearly the same amount 6 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 as the FY 2017 line and approves it.
Travel – Your Committee notes this is an increase of $10,000 consisting of $5,000 increase for two line items from previous years with no obvious explanation.

Contractual Services – Your Committee notes this is the same amount as the FY 2017 line and approves it as recommended.

Other Current Expenses – There is no other current expenses request.

Fixed Assets – There is no fixed assets request.

The Committee feels that no increases are justified at this time.

5.
5.

Division of Infrastructure FY 17 Appropriated FY 18 Recommended Proposed Change Personnel Travel Contract OCE Fixed Assets 0 Total 209,067 72,942 186,965 12,600 481,574 247.307 120,642 202,965 17,600 123,500 712,014 38,240 47,700 16,000 5,000 123,500 230,440 FY 18 Committee Recommendation 209,067 72,942 186,965 12,600 0 481,574 # positions 12 13 1 12 Personnel - An increase of $38,240 is requested in order to fund two new positions.
Travel – An increase is requested of $47,700 consisting of two itineraries; $24,700 for the State Consultation for GCE and $23,000 to visit the FSM Consulate Office in Fiji.

7 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 Contractual Services - An increase of $16,000 is sought for the ground janitorial contract.

Other Current Expenses – An increase of $5000 is requested for a POL for the new trucks the division is requesting.
Fixed Assets – The amount requested is for four new 4x4 trucks and GIS equipment.

The Committee feels that no increases are justified at this time.

FY 18 Committee Recommendation 0 0 6.


Project Management Unit FY 17 Appropriated FY 18 Recommended Proposed Change Personnel Travel Contract OCE 27600 52,574 324,075 19,645 0 0 2,168,140 60,647 -27,600 -52,574 1,844,065 324,075 19,645 41,002 Fixed Assets 0 5000 5,000 0 Total 423,894 2,233,787 1,809,893 343,720 # positions 1 0 -1 0 Personnel – There is no personnel request Travel – There is no travel request.

Contractual Services – Increase of $1,844,065, with no explanation.
The only description is Project Management Contract.

Other Current Expenses – Increase of $41,992, entire increase consists of a generic item entitled: “other consumables” with no explanation.

8 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 Fixed Assets – The request is for office furniture and fixtures.

The Committee feels that no increases are justified at this time.

II.

Grants, Subsidies and Contributions A.


Department of Transportation, Communication, and Infrastructure 1.

Asia Pacific Telecommunity FY 17 Appropriated 11,000 FY 18 Recommended 11,000 0 Proposed Change FY 18 Committee Recommendation 11,000 Your Committee notes this is the same amount as the FY 2017 line and approves it.
2. International Telecommunication Union FY 17 Appropriated 20,867 FY 18 Recommended 104,863 Proposed Change 83,296 FY 18 Committee Recommendation 20,867 The Committee feels that no increases are justified at this time.

3.

ICAO FY 17 Appropriated 28,050 FY 18 Recommended 91,531 Proposed Change 63,481 FY 18 Committee Recommendation 28,050 The Committee feels that no increases are justified at 9 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.
20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 this time.

4.

FSM Capital Energy FY 17 Appropriated 600,000 FY 18 Recommended 615,745 Proposed Change 15,745 FY 18 Committee Recommendation 600,000 Your Committee notes this amount is an increase from the FY 2017 line.

The Committee feels that no increases are justified at this time.

5.
5.

Micronesian Shipping Commission (MSC) FY 17 Appropriated 25,000 FY 18 Recommended 25,000 Proposed Change 0 FY 18 Committee Recommendation 25,000 Your Committee notes this is the same amount as the FY 2017 line and approves it.

6.
6.

Fuel and provisions for Caroline Voyager and Navigator FY 17 Appropriated 1,000,000 FY 18 Recommended 0 Proposed Change -1,000,000 FY 18 Committee Recommendation 1,345,830 Your Committee approves $1,345,830 to fund fuel and provisions for the Caroline Voyager and the Navigator as a grant rather than under the OCE line for the Division of Marine Transportation.

10 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 A.
Department of Transportation, Communication, and Infrastructure 1.

Operation and dry-docking of Caroline Voyager and Navigator FY 17 Appropriated 1,200,000 FY 18 Recommended 1,500,000 300,000 Proposed Change FY 18 Committee Recommendation 1,500,000 The Committee approves the requested increase.

2.

Capital Improvement Projects FY 17 Appropriated 1,200,000 FY 18 Recommended 0 Proposed Change -1,200,000 FY 18 Committee Recommendation 0 No money is being requested for Capital Improvement Projects.

3.
3.

Outer island airport FY 17 Appropriated 1,000,000 FY 18 Recommended 5,095.000 4,095,000 Proposed Change FY 18 Committee Recommendation 2,500.00 The Committee approves $2,500,000 or construction of the Outer Island Airports.

4.

FSM national government computer network FY 17 Appropriated 277,420 FY 18 Recommended 277,420 Proposed Change 0 FY 18 Committee Recommendation 100,000 The Committee only approves $100,000.

11 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.
20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 5.

6.

FSM Capitol Complex (2 story office building) FY 17 Appropriated -- FY 18 Recommended 1,500.000 1,500,000 Proposed Change FY 18 Committee Recommendation 0 The Committee feels that this request has not been sufficiently justified.

7.
7.

New Warehouse Building FY 17 Appropriated -- FY 18 Recommended 200,000 Proposed Change 200,000 FY 18 Committee Recommendation 0 The Committee feels that this request has not been sufficiently justified.

7.

Rehabilitation for all national government buildings.

FY 17 Appropriated -- FY 18 Recommended 500,000 Proposed Change 500,000 The Committee only approves $150,000.

8.
8.

New Backup Generator FY 17 Appropriated -- FY 18 Recommended 80,000 Proposed Change 80,000 FY 18 Committee Recommendation 150,000 FY 18 Committee Recommendation 80,000 The generator is needed and the Committee approves the request.

12 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 9.

10.
10.

Outstanding Inaugural Stage FY 17 Appropriated -- FY 18 Recommended 48,179 Proposed Change 48,179 FY 18 Committee Recommendation 0 The Committee feels that this request has not been sufficiently justified.

10.

Y12 Aircraft Operation Budget FY 17 Appropriated -- FY 18 Recommended 1,005,000 1,005,000 Proposed Change FY 18 Committee Recommendation 0 11.

Funding for Road Seaport and Airport Improvement.


FY 17 Appropriated 0 FY 18 Recommended 0 Proposed Change 0 FY 18 Committee Recommendation 1,200,000 This authorization was not requested, but the Committee feels that each state is in need of funding to improve basic infrastructure.

The Committee approves of equal funding to each state of $300,000 to be used for Airport, Seaport and Road improvement.

In Yap and Kosrae, funds should be spent on seaport improvement.
In Chuuk, the funds may be used for completion of secondary roads in Weno.

The Committee feels that this request has not been sufficiently justified.

CONCLUSION With the modifications identified above, your Committee on Transportation and Communication recommends authorizing those portions of the FY 2018 budget relating to matters under its 13 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.
20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 jurisdiction, subject to the availability of funds, as determined by your Committee on Ways and Means.
Respectfully submitted, Victor V. Gouland, chairman /s/ Alik L. Alik Alik L. Alik, vice chairman 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 14 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 15 STANDING COMMITTEE REPORT NO.

20-21 RE: P.C.

NO.
20-21 RE: P.C.

NO.

19-579/T&C SUBJECT: FY 2018 BUDGET SEPTEMBER 21, 2017 Respectfully submitted, Victor V. Gouland, chairman chairman Robson U. Romolow, vice Alik L. Alik, Member ___________________ Joseph J Urusemal,member ___ __ Esmond B. Moses, member Alik L. Alik, member _______________ _ Joseph J. Urusemal, member 16