Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694844258008.pdf (Micronesia, Federated States of)
STANDING COMMITTEE REPORT NO.

13-160 RE: C.B.

NO.

13-130/W&M SUBJECT: FY 2005 BUDGET ACT AMENDMENTS SEPTEMBER 1, 2004 The Honorable Peter M. Christian Speaker, Thirteenth Congress Federated States of Micronesia Fifth Special Session, 2004 Dear Mr. Speaker: Your Committee on Ways & Means to which was referred C.B.

No.

13-130 entitled: "A BILL FOR AN ACT TO AMEND PUBLIC LAW NO.

13-46, BY AMENDING SECTION 2 AND 6 THEREOF TO CHANGE THE AMOUNT APPROPRIATED FOR CERTAIN PURPOSES, AND FOR OTHER PURPOSES.
", begs leave to report as follows: The intent and purpose of the bill are expressed in its title.

Public Law No.

13-46, an act appropriating funds for the operations of the National Government for FY 2005, was passed by the Thirteenth Congress in its Third Regular Session.

C.B.

No.

13-130 has the purpose of making the following amendments to the FY 2005 budget as set forth in that act: 1.

The amount appropriated for travel for the Department of Foreign Affairs would be reduced by $100,000; 2.
The amount approved for travel for the Customs and Tax Administration of the Department of Finance and Administration would be increased by $40,000; and 3.

The appropriation for travel for the National Oceanic Resource Management Authority (NORMA) would be reduced by $40,000.

Your committee supports the reduction in the budget for the Department of Foreign Affairs.

Much of the travel described by the Department in its FY 2005 proposed budget does not appear to be tied to any identifiable strategic plan.
Further, much of the proposed expense can be avoided by reducing the number of people traveling to international meetings and by being selective as to the international conferences attended.

Your committee does not believe that the Department’s travel budget, as contained in P.L.

No.

13-46, can be justified until STANDING COMMITTEE REPORT NO.

13-160 RE: C.B.

NO.


13-130/W&M SUBJECT: FY 2005 BUDGET ACT AMENDMENTS SEPTEMBER 1, 2004 the Department both (a) develops a strategic foreign relations plan tied to identifiable national goals, and (b) provides a cost-benefit analysis of the FSM’s participation in each of the many international organizations to which the National Government now belongs.

C.B.

No.

13-130 would add $40,000 to the previously-approved travel budget for the Customs and Tax Administration.
Your committee believes that the National Government must significantly improve the effectiveness of its tax collection efforts to help offset the decline in Compact revenues.

An enhanced tax auditing program in the states is a necessary component of the program to improve collections.

Your committee supports adding $40,000 to the FY 2005 budget to fund additional travel to the states for auditing purposes.
Your committee, upon further consideration, regards the travel appropriation for NORMA to be unnecessarily large.

The travel budget submitted by NORMA contemplates extensive travel to international meetings in such places as Italy, Fiji and New Zealand, many man-days spent in Guam, and a number of trips involving teams of four or more NORMA representatives.

There are many opportunities to economize.


The committee recognizes that international cooperation is necessary to protect our fisheries and that, therefore, some involvement in international organizations is appropriate.

On the other hand, our fish is much in demand in the world and it seems likely that foreign buyers would be prepared to come to the FSM.
Having the management of NORMA traveling much of the year appears to be an unnecessary expense and may actually interfere with the Authority’s ability to accomplish its mission.

Scheduled decrements in Compact funding leave the FSM little choice but to increase internal revenues and reduce the costs of operating the National Government.

Your committee believes that the budget amendments contained in C.B.

No.

13-130 will be helpful in accomplishing those objectives.

-2- STANDING COMMITTEE REPORT NO.


13-160 RE: C.B.

NO.

13-130/W&M SUBJECT: FY 2005 BUDGET ACT AMENDMENTS SEPTEMBER 1, 2004 Thus, your Committee on Ways and Means is in accord with the purpose and intent of C.B.

No.

13-130 and recommends its passage on First Reading and that it be placed on the Calendar for Second and Final Reading.
W&M Respectfully submitted, /s/ Sabino S. Asor Sabino S. Asor, chairman /s/ Roosevelt D. Kansou Roosevelt D. Kansou, vice chairman /s/ Henry C. Asugar Henry C. Asugar, member Peter M. Christian, member Peter M. Christian Isaac V. Figir, member Dohsis Halbert, member /s/ Claude H. Phillip Claude H. Phillip, member -3-