Transcript JEMFAC Progress Monitoring - USCompact.org | US Compact of

JEMFAC Progress Monitoring
Presented by the RMI Government
6th RMI-U.S. JEMFAC Meeting
Washington D.C
August 27th, 2008
Outline of Presentation
• Economic Update & Policy
Reform
• Fiscal Year 2009 Budget
• Priority Funding
• Fiscal Update & Decrement
Management
Photo: Rairok Elementary School II
Policy Framework
• Maintaining Macroeconomic Stability
• Improving the Business Policy Environment
• Prioritizing Education & Health Sectors
• Implementing Infrastructure Development
Projects
Photo: Jaliut High School (JHS) Phase II – Admin. Building
Sectoral Shares of GDP ( FY 2008)
NGOs
1%
Households
13%
Private
Enterprise
Government
38%
Public
Enterprise
Finance
(Banks)
Government
NGOs
Households
Finance (Banks)
6%
Private Enterprise
32%
Public Enterprise
10%
Photo: NIHS Phase II - Classrooms
Recent Economic Performance
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
Real GDP Growth
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
-5.4%
-3.6%
-2.9%
5.1%
2.7%
3.8%
3.4%
5.6%
1.7%
1.3%
1.3%
2008
Forcaste
d
1.8%
• Positive GDP growth continues but at a modest pace;
• Slow growth in FY 2007 & 2008 partly due to high global energy prices;
• Real GDP growth in FY 2007 was1.3%;
• Projected Real GDP growth for FY 2008 is 1.8%;
Photo: JHS Phase II – Staff House
What is influencing GDP?
• Modest value added activities in the private sector
• Job losses and reduction of working hours at USAKA
• Public sector
• High energy cost.
Photo: Northern Islands High School (NIHS) Phase II - Classrooms
Industry Developments
Positive prospects for the RMI economy:
• The newly formed Marshall Islands Shipping Corporation
has operated with improved delivery services to the outer
islands;
• Japan Airlines has conducted direct chartered flights
between Tokyo and Majuro, boosting the tourism industry;
• The Tuna Loining Plant is open and operational with new
management and prospect of employing up to 600 workers
by the end 2008;
• Majuro Atoll Waste Company (MAWC) has tremendously
improve waste collections.
Photo: Majuro Atoll Waste Company (MAWC)
USAKA
Impact Summary
FY07
(Baseline) FY08
RMI Workforce
1030
Yearly RMI Employee Tax
Contribution
$1.5
Million
US Workforce On-Island
1034
Yearly US Contractor Tax
Contribution
$2.5
Million
912
FY09
FY10
FY11
FY12
15%
3%
3%
3%
$1.3
$1.1
$1.1
$1.0
$1.0
Million Million Million Million Million
958
17%
4%
5%
4%
$2.3
$1.9
$1.8
$1.7
$1.5
Million Million Million Million Million
*estimated FY08 – FY12 and reflect Prime Contractor (KRS) and AAFES only;
*figures not adjusted for inflation
Photo: Pan Pacific Foods (RMI) Inc.
Employment Trend Factors
4,500
4,000
3,500
Private Sector
3,000
Kwajalein US Base
2,500
2,000
Non-Governmental
Sector
RMI Government
1,500
Other Public Sectors
1,000
500
0
FY97
•
•
•
•
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
Modest growth in Private Sector in FY08, expected growth in FY09
Decreased employment in USAKA
Slight decrease in Non-Governmental Sector
Stagnant growth in RMI Government and Other Public Sectors
Photo: Pan Pacific Foods (RMI) Inc.
RMI Priorities:
• Education and Health sectors continue as the
RMI Government’s two top priorities;
• Direct positive impact on all other sectors and
the economy, as a whole, over the medium and
long-term.
Photo: Rairok Elementary School II
Education & Health Spending
• Recurrent spending on Education & Health have
grown rapidly since FY 2003:
• Education recurrent spending has increased by
125%;
• Health recurrent spending has increased by 71%;
• Spending on other areas has declined by 9%.
Photo: JHS Phase II – Admin. Building
Education and Health Spending
Recurrent Expenditure FY 2003 - FY 2008
(General Fund, Compact Funds, Federal Grants and Special Revenues)
$90,000,000
$100,000,000
$80,000,000
$90,000,000
$80,000,000
$70,000,000
$70,000,000
$60,000,000
MoH
$60,000,000
$50,000,000
MoH
MoE
Other
$40,000,000
$50,000,000
MoE
$40,000,000
$30,000,000
$30,000,000
Others
$20,000,000
$20,000,000
$10,000,000
$10,000,000
$FY03
FY04
FY05
FY06
FY 07
Budget
FY 08
Proposed
$FY08
FY09 (Proposed)
Photo: JHS Phase II – Iakwe Sign
Fiscal Year 2009 Budget
• FY 2009 Budget projected at $124.5 million
• Slight increase from FY 2009 partly due to inflation adjustments
• Revenues forecast decrease largely to reduction in labor force in
USAKA
• Federal grants forecast to be steady
• Special Revenues slightly decreased
Photo: CMI Classroom
Factors Affecting FY 2009
Budget Formulation
•
Energy costs which led to a declaration of economic emergency;
•
Wage & Hiring Freeze Policy;
•
Modest assumptions of inflation and growth used for revenue estimates
based on recent trends and expectations;
•
Utility costs increased sharply;
•
ADB debt payment to increase substantially;
•
Slight reduction in Compact infrastructure grant to support Ministry of
Health & Ministry of Education;
•
High inflation rate.
Photo: Rairok Elementary School II
Government Fiscal Status
•
•
•
•
Overall fiscal position is stagnant;
Imposed freeze on General Fund;
Recent freeze on vacant government posts;
Reduction of subsidies to State Owned Enterprises
(SOE);
• Aggressive tax collections;
• Consolidation of funds
Photo: NIHS Phase II - Classrooms
Consumer Price Index – FY2008
Photo: MAWC – Red Bin Repaired
Global Budget Figures
Funding Source
FY 2008
FY 2009
Domestic Revenue
$ 34,999,891 $
33,249,896
Compact Sector & Other Grants
$ 40,272,580 $
41,833,589
Special Revenues
$
7,528,008 $
6,784,089
Federal Grants
$
7,310,129 $
7,326,078
Overseas Revenue (ROC recurrent and projects)
$
5,500,000 $
5,250,000
Compact Trust Fund
$
9,713,700 $
10,784,291
Kwajalein Development Fund
$
2,050,670 $
2,167,308
Kwajalein Landowner payments
$ 16,189,500 $
17,110,328
Total
$ 123,564,477 $
124,505,579
Photo: JHS Phase II – Admin. Building
FY 2009 Compact sector grant allocations
Compact Sector Grants Breakdown
Proposed Sector Allocations
Education
$
11,957,410
Health
$
7,404,620
Private Sector
$
Capacity Building
$
Environment
$
Infrastructure Development
$
12,047,382
Total
$
31,834,412
-
425,000
-
Photo: CMI Classroom
FY 2009 Education Spending
Table 1: MOE Funding (total $) by Outcome, Agency and Source
MOE Outcomes &
Compact
General
Special
Base Grant
Fund
Related Agencies
Revenue
Outcome 1: To improve the
efficiency and effectiveness of
MOE staff through the provision of
budget, finance and HR
development
Outcome 2: Improve education
results in the RMI through
research, testing, data
management, and IT services
Outcome 3: Provide property
maintenance services to all
schools and administration
building and coordinate expanded
community role for maintenance
and upkeep
Outcome 4: To provide access
and improve student performance
and learning outcomes at early
childhood and primary levels
Outcome 5: To provide access
and improve student performance
and learning outcomes at the
secondary level
Outcome 6: To vocationalize the
RMI curriculum
Outcome 7: To continue to
improve the effectiveness of
classroom instruction through
improved, curriculum, testing and
teacher program delivery
Outcome 8: To improve service
delivery and learning outcomes by
addressing the special needs of
the students on Kwajalein atoll
Outcome 9: To address needs of
special education students
Outcome 10: National
Scholarship Board
Outcome 11: National Training
Council
College of the Marshall
Islands
Total
Ebeye
Special
Needs
Federal and
other Grants
Capital
SEG
Tuition/Fees
Pell Grants
Non-Appro
Auxiliary
Non-Appro
Total
2,026,938
738,820
0
0
0
1,210,978
0
0
0
3,976,736
97,500
238,492
0
0
0
60,000
0
0
0
395,992
332,322
330,668
0
0
0
123,000
0
0
0
785,990
4,456,698
109,373
0
0
0
2,490,475
0
0
0
7,056,546
2,228,005
84,538
0
0
0
960,543
0
0
0
3,273,086
0
0
0
0
0
0
0
0
0
0
45,750
379,344
0
0
0
0
0
0
0
425,094
816,344
0
0
1,692,845
0
0
0
0
0
2,509,189
0
104,999
0
0
1,677,186
0
0
0
0
1,782,185
600,000
173,223
0
100,000
0
679,000
0
0
0
1,552,223
0
0
174,631
0
0
476,004
0
0
642,000
1,292,635
1,353,853
2,000,000
0
0
770,771
100,000
5,000,000
3,416,910
0
12,641,534
11,957,410
4,159,457
174,631
1,792,845
2,447,957
6,100,000
5,000,000
3,416,910
642,000
35,691,210
Photo: Rairok Elementary School II
FY 2009 Recurrent Education
Spending by Outcomes
Admin
11%
Admin
Policy
1%
CMI
36%
Policy
Property
2%
Property
Primary
Secondary
Primary
20%
TVET
CIA
Kwaj
NTC
4%
Special Ed
Secondary
9%
NSB
4%
Special Ed
5%
TVET
0%
Kwaj
7%
NSB
NTC
CMI
CIA
1%
Photo: JHS Phase II - Staff House
FY 2009 Health Spending
Table 1: MOH Funding (total $) by Outcome, Agency and Source
MOH Outcomes
Outcome 1: Provide Primary and Preventive
Health Care and Improve the Health Status
in then Outer Islands
General
Fund
Health Fund
Health Care
Revenue
Compact
Base
Grant
US Federal
Grants
Ebeye
Special
Needs
Other
Grants
Total
492,349
681,000
777,455
0
430,565
0
2,381,369
411,589
30,000
0
0
1,070,366
96,300
1,608,255
1,077,925
1,874,000
3,085,298
0
1,480,503
0
7,517,726
462,593
801,000
1,151,337
1,585,393
25,000
0
4,025,323
10,169
0
23,000
85,750
15,243
0
134,162
27,238
15,000
239,988
72,146
694,940
0
1,049,312
Outcome 7: To Provide Effective
Management of OH Personnel and Finance
282,295
308,000
1,802,542
0
784,754
210,400
3,387,991
Outcome 8: To Provide Timely and Current
HIS Service
145,549
0
0
0
0
29,300
174,849
Outcome 9: To Provide Referral Service to
Patients who Require Medical Attention
75,144
2,268,000
0
0
0
0
2,343,144
0
0
325,000
0
0
0
325,000
2,984,851
5,977,000
7,404,620
1,743,289
4,501,371
336,000
22,947,131
Outcome 2: Provide Primary and Preventive
Health Care on Majuro
Outcome 3: To provide Effective Hospital
Service Majuro
Outcome 4: To Provide Kwajalein Atoll with
efficient Hospital Services (Ebeye)
Outcome 5: To Improve the Effectiveness
of Hospital Service for Kwajalein Atoll
Outcome 6: To Provide Kwajalein Atoll with
Efficient Primary and Preventative Health
Care Services and Management
Outcome 10: MAWC
Total
Photo: JHS Phase II – Staff House
FY 2009 Recurrent Health
Spending By Outcomes
HIS
1%
Referral
10%
MAWC
1%
OIHS
10%
OIHS
MPP
MPP
7%
Adm in
15%
MHS
KHS
KHS-Im provem ent
KPP
5%
KPP
MHS
32%
KHS-Im provem ent
1%
Adm in
HIS
Referral
MAWC
KHS
18%
Photo: NIHS Phase II - Classrooms
Infrastructure Development
• Infrastructure Development Plan is consistent with the RMI’s
sectoral priorities, the Education and Health Sectors:
• The College of the Marshall Islands
• Elementary and High Schools
• Majuro Hospital Redevelopment
• National Energy Capital Projects
• Matching for grants;
• Infrastructure and Maintenance Fund (IMF)
• Majuro Atoll Waste Company (MAWC)
• Infrastructure grant increased in FY 2009 due to inflation
adjustments and well above 30% requirement
Photo: CMI Classroom
FY 2009 Capital Infrastructure
Compact Capital Fund
$
12,047,381
College of the Marshall Islands
$
5,000,000
Elementary and High School Projects
$
3,625,012
Majuro Hospital
$
1,000,000
National Energy Capital Projects
Marshall Islands Ports Authority (FAA
Matching)
$
1,000,000
$
700,000
Infrastructure Maintenance Fund
$
602,369
Majuro Atoll Waste Company
$
120,000
Photo: CMI Classroom
FY 2009 Infrastructure Plan
IMF
5%
MIPA (FAA
Matching)
6%
MoE
72%
MoE
MoH
NECP
NECP
8%
MIPA (FAA
Matching)
IMF
MoH
9%
Photo: Rairok Elementary School II
Decrement Management
• Full inflation is critical in coping with rising
costs and will allow time to make fiscal
adjustments;
• Cost controls through hiring and wage freeze
policy;
• Consolidation of Special Revenue Funds
• Tax Reform Commision
Photo: CMI Classrooms
Compliance Management: Audit
Progress since FY2003
• No. of Audit Findings reduced by 50%;
• No. of unauditable Component Units: 8 - 0;
• Amount of Questioned Costs reduced by 33%;
• Fixed Assets qualification resolved two years in a row;
• Request for extension of DOI TA to assist Component Units
• Achieved Unqualified Opinion – Clean Audit for the first time
Photo: Namdrik Elementary School (Phase 1 – Outer Islands School)
Thank you
“Kommol Tata”
Photo: MAWC – Majuro Dumpsite (Rebuilding Red Bins)
IDMP 0018 Marshall Islands High School Phase II
IDMP 0017 Rita Elementary School Phase II
IDMP 0020 Namdrik Elementary School (Phase I)
IDMP 0028 Laura High School Phase II (Stage II)