PROPOSED FMC FISCAL 2004 BUDGET COVERS OPERATIONS COSTS ? BARELY

PROPOSED FMC FISCAL 2004 BUDGET COVERS OPERATIONS COSTS à BARELY    The U.S. Federal Maritime Commission’s proposed budget for fiscal year 2004 is expected to cover the operational costs of the 137-person agency, but barely,
   The budget proposes $18.47 million for fiscal year 2004, an increase of about 10 percent over the FMC appropriations in fiscal year 2003.
   “After many years of reductions, this increase should help to restore the commission’s budget to a more reasonable level so it can continue vigilant enforcement of foreign shipping rules and regulations that protect U.S. shipping concerns,” said Rep. Frank LoBiondo, R-N.J., chairman of the House Coast Guard and Maritime Transportation Subcommittee on March 13.
   Steven R. Blust, chairman of the FMC, explained to the subcommittee that the agency’s budget will just make ends meet, but operational costs are expected to rise.
   The budget does not include funding for the 1 percent fiscal year 2003 pay increase. “The commission must find the resulting $140,000 increase in fiscal year 2004,” Blust said.
   Blust also said the FMC must not reduce its travel budget any further. “Travel remains an essential aspect of our effort to provide better service to the ocean transportation industry and to accomplish our oversight duties more effectively,” Blust said.
   In addition, the FMC is bracing for a “substantial increase” in rent as a result of a new long-term lease. “Other administrative expenses will be incurred in fiscal year 2004 to support increases in our customary business expenses, such as maintaining government and commercial contracts, and for items such as telephone, postage, and supplies,” Blust said.