Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694844110944.pdf (Micronesia, Federated States of)
STANDING COMMITTEE REPORT NO.

22-23 RE: C.B.

No.

22-85/CONSOLIDATED W&M SUBJECT: FY 2022 BUDGET SEPTEMBER 22, 2021 The Honorable Wesley W. Simina Speaker, Twenty-Second Congress Federated States of Micronesia Second Regular Session, 2021 Dear Speaker: Your Committee on Ways & Means, to which was referred Congressional Bill No.
22-85, entitled: “A BILL FOR AN ACT TO APPROPRIATE $69,582,358 FROM THE GENERAL FUND OF THE FEDERATED STATES OF MICRONESIA FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2022, TO PROVIDE FUNDING FOR THE OPERATIONS OF ALL BRANCHES OF THE NATIONAL GOVERNMENT OF THE FEDERATED STATES OF MICRONESIA, ITS AGENCIES, VARIOUS PROGRAMS, GRANTS, SUBSIDIES AND CONTRIBUTIONS AND CAPITAL AND HUMAN RESOURCES DEVELOPMENT, AND FOR OTHER PURPOSES.”, begs leave to report as follows.
The intent and purpose of the bill are expressed in its title.

Reports on the Proposed FY 2022 Budget The subject bill is based upon the FSM National Government FY2022 Recommended Budget (“Budget Book”), transmitted by the Executive in Presidential Communication No.

21-533, as SCRL 22-32/CONSOLIDATED/W&M STANDING COMMITTEE REPORT NO.

22-23 RE: C.B.

No.

22-85/CONSOLIDATED W&M SUBJECT: FY 2022 BUDGET SEPTEMBER 22, 2021 reported on by each Congress Standing and one Special Committee.
Your Standing and Special Committees have recommended funding levels for budget requests within their areas of jurisdiction.

Congress has adopted each of the Committee’s reports.

The report numbers are as follows: Climate Change and Environmental Issues – Special Committee Report No.

22-04; Transportation and Communication - S.C.R.

No.

22-17; Judiciary and Governmental Operations - S.C.R.

No.

22-19; Health and Social Affairs - S.C.R.

No.

22-16; Education – S.C.R.

No.


22-14; External Affairs - S.C.R.

No.

22-20; Resources and Development - S.C.R.

No.

22-18; and Ways and Means - S.C.R.

No.

22-09.

FY 2021 Revenue Projections Your Committee notes that FY 2022 Estimated Revenues were included with the Budget Book, with projections of $85,664,484 of Domestic Revenue, $1,000,000 of Amended Compact Sector Grant funding, and $1,612,592 of Supplemental Education Grant (SEG) funding for FY 2022.
The Estimated Revenues also included U.S. Federal Programs and other foreign assistance, which Congress does not appropriate; as such, your Committee has disregarded these sources from the Estimated Revenues and appropriating legislation.

Your Committee recommends using the Revenue Projection of $85,664,512 in Domestic Revenue as provided by the FY 2022 Budget Book, as the Committee defers to the President for domestic revenue projections for FY 2022.
Your Committee recommends $1,542,202 in Supplemental Education Grant (SEG) funding and $1,000,000 in Amended Compact Sector Grant funding for COM-FSM as per the amounts indicated in Presidential Communication No.

22-101.

Adding the Domestic Revenue, the Amended Compact Sector Grant funding for COM-FSM, and the SEG, a total of $88,206,714 in revenue is estimated for FY 2022.

This total - 2 - STANDING COMMITTEE REPORT NO.

22-23 RE: C.B.

No.
22-23 RE: C.B.

No.

22-85/CONSOLIDATED W&M SUBJECT: FY 2022 BUDGET SEPTEMBER 22, 2021 includes $12,000,000 which shall be deducted as 20% of the Fishing Fees go into the FSM Trust Fund and $3,000,000 which shall also be deducted as 50% of the Corporate Tax go into the FSM Trust Fund.
After deducting the aforementioned amounts, $70,664,512 will be available from Domestic Revenue, $1,000,000 will be available from Amended Compact Sector funds, and $1,542,202 will be available from the Supplemental Education Grant.

All your Committees worked diligently to bring the budget into balance while trying to meet the needs of the National Government, agencies, and programs, as well as provide the Grants, Subsidies and Contributions on which many organizations rely.
In this report, your Committee on Ways and Means recommends approval of a budget for FY 2022 totalling $69,582,358; of this amount, $67,040,156 is recommended from Domestic Revenue and $1,000,000 is recommended from the Amended Compact Sector for COM-FSM and $1,542,202 is recommended from the Supplemental Education Grant.

Standing Committee Reports Adjustments Your Committee has reviewed the Standing Committee Reports of each of your Committees.
Each report made recommendations in relation to the budgets of the departments, agencies, offices and programs within each Committee’s jurisdiction.

Your Committee’s deliberations and recommendations are summarized by this report and are reflected in the attached bill.
Your Committee notes that while all of your Committees were diligent in their review of the budget under their jurisdictions, your Committee on Ways and Means, mindful of the current global pandemic caused by COVID-19 and potential effects that it will have in the economy in FY 22, which could result in lower revenues than projected in FY 2022, and with a focus on fiscal responsibility, followed the policy to reduce the travel by an additional ten (10%) - 3 - STANDING COMMITTEE REPORT NO.

22-23 RE: C.B.
22-23 RE: C.B.

No.

22-85/CONSOLIDATED W&M SUBJECT: FY 2022 BUDGET SEPTEMBER 22, 2021 percent from the recommended amounts by all the Standing Committees Reports.

After reviewing each report, your Committee wishes to issues make the following adjustments: (1) Committee on Climate Change and Environmental Issues- Special Committee Report No.
22-04 Your Committee notes that in light of the COVID-19 pandemic and the travel restrictions in place on the nation, that all the Committees recommended travel was reduced by ten (10%) percent; therefore, under the operating expenses for the department and offices listed below, your committee recommends decreasing the travel to meet the ten (10%) percent mark.
The total operational budget for the Department of Environment, Climate Change, and Emergency Management as recommended by your Committee on Ways and Means, is as follows: $586,978 for personnel; $66,434 for travel; $31,500 for contractual services; $52,220 for OCE; and $336,000 for fixed assets, for a total of $773,133.

Furthermore, your Committee recommends not funding the Department’s Section 8 request for $100,000 to Travel to Climate Change Conference.
Your Committee notes the current travel restrictions in place and the continued raise in COVID-19 cases worldwide and encourages Departments to travel only within the country.

(2) Committee on Transportation and Communication, S.C.R.

No.
No.

22-17 Your Committee notes that in light of the COVID-19 pandemic and the travel restrictions in place on the nation, that all the Committees recommended travel was reduced by ten (10%) percent; therefore, under the operating expenses for the departments and offices listed below, your committee - 4 - STANDING COMMITTEE REPORT NO.

22-23 RE: C.B.

No.

22-85/CONSOLIDATED W&M SUBJECT: FY 2022 BUDGET SEPTEMBER 22, 2021 recommends decreasing the travel to meet the ten (10%) percent mark.
The total operational budget for TC&I, as recommended by your Committee on Ways and Means, is as follows: $758,042 for personnel; $114,800 for travel; $2,054,764 for contractual services; 118,900 for OCE; and $111,500 for fixed assets, for a total of $3,158,006.

(3) Committee on Judiciary and Government Operations, S.C.R.

No.
No.

22-19 Your Committee notes that in light of the COVID-19 pandemic and the travel restrictions in place on the nation, that all the Committees recommended travel was reduced by ten (10%) percent; therefore, under the operating expenses for the departments and offices listed below, your committee recommends decreasing the travel to meet the ten (10%) percent mark.
The total operational budget for the Department of Justice, as recommended by your Committee on Ways and Means, is as follows: $4,015,412 for personnel; $101,196 for travel; $750,920 for contractual services; $818,142 for OCE; and $113,000 for fixed assets, for a total of $5,798,670.
The total operational budget for the Office of the Public Defender, as recommended by your Committee on Ways and Means, is as follows: $971,457 for personnel; $38,476 for travel; $128,394 for contractual services; $86,900 for OCE; and $46,900 for fixed assets, for a total of $1,272,127.
The total operational budget for the National Judicial Branch, as recommended by your Committee on Ways and Means, is as follows: $1,343,038 for personnel; $50,214 for travel; $394,300 for contractual services; $228,050 for OCE; and $6,000 for fixed assets, for a total of $2,075,602.

The total operational budget for the National Postal Service, as recommended by your Committee on Ways and Means, - 5 - STANDING COMMITTEE REPORT NO.

22-23 RE: C.B.

No.
22-23 RE: C.B.

No.

22-85/CONSOLIDATED W&M SUBJECT: FY 2022 BUDGET SEPTEMBER 22, 2021 is as follows: $609,752 for personnel; $19,993 for travel; $187,119 for contractual services; $175,950 for OCE; and $80,000 for fixed assets, for a total of $1,072,814.
The total operational budget for the National Election Commissioner, as recommended by your Committee on Ways and Means, is as follows: $338,678 for personnel; $6,215 for travel; $64,708 for contractual services; $82,963 for OCE; and $0 for fixed assets, for a total of $492,564.

(4) Committee on Health and Social Affairs, S.C.R.

No.
No.

22-16 Your Committee notes that in light of the COVID-19 pandemic and the travel restrictions in place on the nation, that all the Committees recommended travel was reduced by ten (10%) percent; therefore, under the operating expenses for the departments and offices listed below, your committee recommends decreasing the travel to meet the ten (10%) percent mark.
The total operational budget for the Department of Health and Social Affairs, as recommended by your Committee on Ways and Means, is as follows: $768,853 for personnel; $41,639 for travel; $124,942 for contractual services; $161,621 for OCE; and $0 for fixed assets, for a total of $1,097,055.
The total operational budget for the Office of National Archives, Culture and Historic Preservation, as recommended by your Committee on Ways and Means, is as follows: $215,538 for personnel; $9,605 for travel; $15,425 for contractual services; $20,289 for OCE; and $0 for fixed assets, for a total of $260,857.

(5) Committee on Education, S.C.R.

No.


22-14 Your Committee notes that in light of the COVID-19 pandemic and the travel restrictions in place on the nation, that all the Committees recommended travel was reduced by ten (10%) percent; therefore, under the operating expenses for the departments and offices listed below, your committee - 6 - STANDING COMMITTEE REPORT NO.

22-23 RE: C.B.

No.
22-23 RE: C.B.

No.

22-85/CONSOLIDATED W&M SUBJECT: FY 2022 BUDGET SEPTEMBER 22, 2021 recommends decreasing the travel to meet the ten (10%) percent mark.

Your Committee notes that the Standing Committee Report and recommendations for this Committee were finalized before the receipt of Presidential Communication 22-101 which set the amount of SEG Funds for FY 22 at $1,542,202.

This is $70,418 less than the FY22 Budget Book estimates.
Therefore, your Committee recommends the amounts appropriated from the SEG funding for the COM-FSM and NDOE SEG Project in Section 9 remain as recommended and the difference ($70,418) in funding to be deducted from the travel of the Division of Quality and Effective Education in their operations budget.

Under Grants, Subsidies, and Contributions for the Department of Education your Committee recommends funding Xavier High School and Yap Catholic High School in the amounts of $75,000 each.
The total operational budget for the Department of Education, as recommended by your Committee on Ways and Means, is as follows: $474,931 for personnel; $61,067 for travel; $152,069 for contractual services; $66,448 for OCE; and $31,000 for fixed assets, for a total of $785,514.

(6) Committee on External Affairs, S.C.R.

No.


22-20 Your Committee notes that in light of the COVID-19 pandemic and the travel restrictions in place on the nation, that all the Committees recommended travel was reduced by ten (10%) percent; therefore, under the operating expenses for the departments and offices listed below, your committee recommends decreasing the travel to meet the ten (10%) percent mark.
The total operational budget for the Department of Foreign Affairs, as recommended by your Committee on Ways and Means, is as follows: $2,246,458 for personnel; $125,982 for - 7 - STANDING COMMITTEE REPORT NO.

22-23 RE: C.B.

No.

22-85/CONSOLIDATED W&M SUBJECT: FY 2022 BUDGET SEPTEMBER 22, 2021 travel; $391,311 for contractual services; $522,780 for OCE; and $91,000 for fixed assets, for a total of $6,377,531.
The total operational budget for the Office of Veteran’s Affairs, as recommended by your Committee on Ways and Means, is as follows: $79,240 for personnel; $11,401 for travel; $50,000 for contractual services; $18,000 for OCE; and $0 for fixed assets, for a total of $158,641.

Under Grants, Subsidies, and Contributions, your Committee notes that the request for $100,000 for the Japan and Oregon Consulates New Office Needs is only for the Portland, Oregon Consulate office.
(7) Committee on Resources and Development, S.C.R.

No.

22-18 Your Committee notes that in light of the COVID-19 pandemic and the travel restrictions in place on the nation, that all the Committees recommended travel was reduced by ten (10%) percent; therefore, under the operating expenses for the departments and offices listed below, your committee recommends decreasing the travel to meet the ten (10%) percent mark.
The total operational budget for the Department of Resources and Development, as recommended by your Committee on Ways and Means, is as follows: $993,842 for personnel; $116,137 for travel; $120,200 for contractual services; $219,999 for OCE; and $9,280 for fixed assets, for a total of $1,459,456.
The total operational budget for the National Oceanic Resource Management Authority, as recommended by your Committee on Ways and Means, is as follows: $820,685 for personnel; $111,363 for travel; $200,741 for contractual services; $86,370 for OCE; and $0 for fixed assets, for a total of $1,219,159.

The total operational budget for the FSM Banking Board, as recommended by your Committee on Ways and Means, is as - 8 - STANDING COMMITTEE REPORT NO.

22-23 RE: C.B.

No.
22-23 RE: C.B.

No.

22-85/CONSOLIDATED W&M SUBJECT: FY 2022 BUDGET SEPTEMBER 22, 2021 follows: $115,263 for personnel; $22,877 for travel; $41,128 for contractual services; $25,110 for OCE; and $4,500 for fixed assets, for a total of $208,877.
The total operational budget for the FSM Insurance Board, as recommended by your Committee on Ways and Means, is as follows: $151,355 for personnel; $21,308 for travel; $347,175 for contractual services; $32,004 for OCE; and $0 for fixed assets, for a total of $551,842.

Under Capital and Human Resources Development, your Committee does not recommend $1,000,000 for Enhancing Tourism.

(8) Committee on Ways and Means, S.C.R.


22-09 Your Committee notes that in light of the COVID-19 pandemic and the travel restrictions in place on the nation, that all the Committees recommended travel was reduced by ten (10%) percent; therefore, under the operating expenses for the departments and offices listed below, your committee recommends decreasing the travel to meet the ten (10%) percent mark.
The total operational budget for the Office of the President, as recommended by your Committee on Ways and Means, is as follows: $729,392 for personnel; $226,800 for travel; $870,000 for contractual services; $130,000 for OCE; and $56,000 for fixed assets, for a total of $2,012,192.
The total operational budget for the Department of Finance and Administration, as recommended by your Committee on Ways and Means, is as follows: $2,450,382 for personnel; $139,280 for travel; $241,300 for contractual services; $341,300 for OCE; and $10,000 for fixed assets, for a total of $3,182,262.
The total operational budget for the Office of Personnel, as recommended by your Committee on Ways and Means, is as follows: $185,161 for personnel; $3,930 for travel; $0 for - 9 - STANDING COMMITTEE REPORT NO.

22-23 RE: C.B.

No.

22-85/CONSOLIDATED W&M SUBJECT: FY 2022 BUDGET SEPTEMBER 22, 2021 contractual services; $11,500 for OCE; and $5,000 for fixed assets, for a total of $205,591.
The total operational budget for the Congress – Speaker and Members, as recommended by your Committee on Ways and Means, is as follows: $840,650 for personnel; $169,531 for travel; $2,415,000 for contractual services; $0 for OCE; and $0 for fixed assets, for a total of $3,425,181.
The total operational budget for the Congress – Staff Offices, as recommended by your Committee on Ways and Means, is as follows: $1,613,185 for personnel; $27,000 for travel; $602,000 for contractual services; $259,000 for OCE; and $160,000 for fixed assets, for a total of $2,661,185.
The total operational budget for the Office of the National Public Auditor, as recommended by your Committee on Ways and Means, is as follows: $780,535 for personnel; $62,550 for travel; $126,000 for contractual services; $67,000 for OCE; and $20,000 for fixed assets, for a total of $1,056,485.
Under the Congress Delegation Offices your Committee recommends adding the following language: “Any unexpended Representation funds shall lapse into the FSM Trust Fund state sub-account of the respective state or states, which had remaining unexpended Representation funds.” Under the Grants, Subsidies and Contributions for the Office of the President your Committee recommends the following: decreasing the request for the JCRP to halve their travel request from $484,088 to $242,044.
The total your Committee is recommending for the JCRP is $1,078,937.

- 10 - STANDING COMMITTEE REPORT NO.

22-23 RE: C.B.

No.

22-85/CONSOLIDATED W&M SUBJECT: FY 2022 BUDGET SEPTEMBER 22, 2021 CONCLUSION Your Committee on Ways and Means, with the aforementioned adjustments to the respective Standing Committee Reports, is in accord with the intent and purpose of C.B.

No.
No.

21-85 and recommends its passage on First Reading, and that it be placed on the Calendar for Second and Final Reading in the form attached hereto.

Respectfully submitted, /s/ Isaac V. Figir Isaac V. Figir, chairman Victor V. Gouland, member /s/ Victor V. Gouland /s/ Dion G. Neth Dion G. Neth, member Ferny S. Perman, member /s/ Ferny S. Perman /s/ Robson U. Romolow /s/ Joseph J. Urusemal Robson U. Romolow, member Joseph J. Urusemal, member /s/ Paliknoa K. Welly Paliknoa K. Welly, member - 11 -