U.S. Census Data Show Compact Migrants throughout U.S. Areas, with Growing Populations in Guam and Hawaii

		Compact Migrants Reside throughout States and Territories

The combined data from Census’ 2005-2009 ACS and the 2008 required  enumerations in Guam and the CNMI estimated approximately 56,000  compact migrants—nearly a quarter of all FAS citizens—living in U.S.  areas, with the largest populations in Guam and Hawaii.   Use of two different methods.   Limited comparability with prior enumeration. In 2008, Census did not  collect information on characteristics of compact migrants in Guam  and the CNMI beyond that required for the enumerations. Preliminary Approach for 2013 Also Has Strengths and Limitations

Although Interior has not yet selected an approach for its 2013  enumeration of compact migrants in the affected jurisdictions, Interior and  Census officials are discussing a preliminary approach that would have  strengths and limitations similar to those we found in the 2008  approach. Estimates of Rising Compact Impact Costs Have Weaknesses, and Guidance on Impact Reporting Is Lacking

		Guam and Hawaii Report Rising Costs, Primarily for Education and Health

For 2004 through 2010, the affected jurisdictions’ reports to Interior show  more than $1 billion in costs for services related to compact migrants.   Federal funding. Compact migrants participate in local economies through taxation, but  reliable data quantifying their effect are not available. Government Officials, Service Providers, and Compact Migrants Suggested Approaches to Directly Address Challenges Related to Compact Migration

Compact migrants confront complex challenges related to the compact  migrants’ unfamiliarity with local language and culture, limited job skills,  and difficulty in accessing available services, according to various  government officials, services providers, and compact migrants. Job training. Sector Grants to the FSM and the Marshall Islands Indirectly Address Compact Impact

Sector grants awarded in fiscal years 2004 through 2010 may have  helped mitigate compact impact by supporting the health and education  sectors and, in some instances, directly targeted issues related to  compact impact in the affected jurisdictions. In allocating sector grants for fiscal years 2004 through 2010, the joint  management committees did not formally address the needs of compact  migrants or their impact on U.S. states and territories, according to  Interior officials. In 2011, the committees formally placed compact impact  on their annual meeting agendas; however, as of September 2011 they  had not allocated 2012 sector grant funding to directly address issues that  concern the compact migrants or the affected jurisdictions. Interior’s compact impact grants have generally been used for affected  jurisdictions’ budget support, projects, and purchases in the areas of  education, health, and public safety. Comments from U.S. Areas

			Hawaii

The government of Hawaii generally agreed with our recommendations  and made several related observations. Appendix I: Scope and Methodology

This report describes migration to U.S. areas from the Federated States  of Micronesia (FSM), the Marshall Islands, and Palau under those  countries’ compacts of free association with the United States; reviews  approaches to enumerating these compact migrants; evaluates reporting  of these migrant’s impact on Guam, Hawaii, and the Commonwealth of  the Northern Mariana Islands (CNMI); and reviews Department of the  Interior (Interior) grants related to compact migration. To estimate the populations of affected jurisdictions, FSM,  and the Marshall Islands in 2003 and 2008, we used the 1999 Marshall  Islands census, an estimate from the Marshall Islands’ embassy to the  U.S. for the 2011 population, and 2000 and 2010 censuses for the FSM  and the affected jurisdictions, assumed that the population changed at a  constant rate, and interpolated the population counts for the years in  between.   Accuracy. Revenue. However, some agency costs were  reported in subsequent fiscal year reports. Appendix VII: Interior-Awarded Compact Impact Grants to Affected Jurisdictions from 2004 to 2011

Interior distributed the compact impact grants to the affected jurisdictions  in 2004 through 2010 as follows:    From fiscal year 2004 through 2009, based on the results of 2003  enumeration, Interior annually awarded approximately $14 million to  Guam, $10.6 million to Hawaii, and $5.2 million to the CNMI. The Department of the Interior suggested that our report’s use of the  terms “compensation” and “reimbursement” to describe compact  impact funds could give the impression that these funds were  intended to fully reimburse the affected jurisdictions for their added  expenses when the amended compacts' enabling legislation states  that compact impact grants are “to aid in defraying costs incurred by  affected jurisdictions as a result of increased demands placed on  health, educational, social, or public safety services or infrastructure  related to such services due to the residence in affected jurisdictions”  of compact migrants. 3. 2. 12. 4.
Why GAO Did This Study

U.S. compacts with the freely associated states (FAS)--the Federated States of Micronesia (FSM), the Marshall Islands, and Palau--permit FAS citizens to migrate to the United States and its territories (U.S. areas) without regard to visa and labor certification requirements. Thousands of FAS citizens have migrated to U.S. areas (compact migrants)--particularly to the Commonwealth of the Northern Mariana Islands (CNMI), Guam, and Hawaii, which are defined as affected jurisdictions. In fiscal year 2004, Congress appropriated $30 million annually for 20 years to help defray affected jurisdictions' costs for migrant services (compact impact). Though not required, affected jurisdictions can report these costs to the Department of the Interior (Interior), which allocates the $30 million as impact grants in proportion to compact migrant enumerations required every 5 years. This report (1) describes compact migration, (2) reviews enumeration approaches, (3) evaluates impact reporting, and (4) reviews Interior grants related to compact impact. GAO reviewed U.S. agency data, recent enumerations, impact reports, and grants and it also interviewed officials, employers, and migrants in the affected jurisdictions.

What GAO Found

Combined data from the U.S. Census Bureau's (Census) 2005-2009 American Community Survey (ACS) and the required enumeration in 2008 estimate that a total of roughly 56,000 compact migrants from the FSM, the Marshall Islands, and Palau--nearly a quarter of all FAS citizens--were living in U.S. areas. Compact migrants resided throughout U.S. areas, with approximately 58 percent of all compact migrants living in the affected jurisdictions. According to the 2008 required enumeration, compact migrant populations continued to grow in Guam and Hawaii and were roughly 12 percent of the population of Guam and 1 percent of the population of Hawaii. Working under agreements with Interior, Census used a different approach for the most recent enumeration than for prior enumerations, employing two methods in 2008: (1) a one-time survey in Guam and the CNMI and (2) a tabulation of existing multiyear ACS data for Hawaii. The affected jurisdictions opposed the change in approach. The 2008 approach allowed for determining the precision of the estimates but did not yield comparable results across jurisdictions or detailed information on compact migrants. Interior and Census officials have a preliminary plan for the required 2013 enumeration but Interior has not determined its cost or assessed its strengths and limitations. The methods used by affected jurisdictions to collect and report on compact impact have weaknesses that reduce their accuracy. For fiscal years 2004 through 2010, Hawaii, Guam and the CNMI reported more than $1 billion in costs associated with providing education, health, and social services to compact migrants. However, some jurisdictions did not accurately define compact migrants, account for federal funding that supplemented local expenditures, or include revenue received from compact migrants. Although Interior is required to report to Congress any compact impacts that the affected jurisdictions report to Interior, it has not provided the affected jurisdictions with adequate guidance on estimating compact impact. Compact migrants participate in local economies through employment, taxation and consumption, but data on these effects are limited. From fiscal years 2004 to 2010, Interior awarded approximately $210 million in compact impact grants to the affected jurisdictions, which used the funds primarily for budget support, projects, and purchases in the areas of education, health, and public safety. In Guam and Hawaii, government officials, service providers, and compact migrants discussed approaches to more directly address challenges related to migration by bridging language barriers, providing job training, and increasing access to services. The amended compacts also made available $808 million in sector grants for the FSM and the Marshall Islands from fiscal years 2004 to 2010. Sector grants are jointly allocated by the joint U.S.-FSM and U.S.-Marshall Islands management committees and have been used primarily in the FAS for health and education. Few sector grants directly address issues that concern compact migrants or the affected jurisdictions. The committees had not formally placed compact impact on their annual meeting agendas until 2011 and have not yet allocated any 2012 sector grant funds to directly address compact impact.

What GAO Recommends

GAO recommends that Interior assess the 2013 enumeration approach, disseminate adequate guidance on estimating compact impact, and encourage uses of grants that better address compact migrants' impact and needs. Interior generally agreed with the report but did not support the recommendation on grant uses.