By Susan Mann
Caribbean Net News St Thomas-St John Correspondent
Email: susan@caribbeannetnews.com
ST THOMAS, USVI: Governor John deJongh this week submitted the Fiscal Year 2008 budget for the Executive Branch in accordance with provisions of the Revised Organic Act of 1954. The balanced spending plan totaling $799.2 million dollars was presented to the 27th Legislature during a meeting with the Governor on Wednesday morning. DeJongh outlined the provisions of the proposed budget in a Government House news conference.
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| USVI Governor John deJongh meets with senate |
“Consistent with our commitment to truth in governing, I offer you a document that accurately depicts our current fiscal situation and makes an effort to bring about an environment of openness and transparency in government,” deJongh said Wednesday.
The financial condition of the government remains precarious and fundamental problems do exist that will take years to address, but it is critical that the process of adjustment to historically wrong patterns of public sector management begin.
DeJongh explained further that in the past, the operating budget has failed to fund a number of financial and legal obligations.
The governor outlined as goals over the next year to bring financial reporting current with regards to the government’s financial statements.
“We will align our resources with our priorities. This budget begins this process by addressing issues including: reforming public education and improving public safety, implementing institutional reform such as moving housing to the Housing Finance Authority, developing a new Sports, Parks and Recreation department and the relocation of the Energy Office to the Governor’s Office."
In the area of Education, the governor spoke of the empowerment of district superintendents by giving them enhanced budget authority. “In this process we reallocate resources by district, and transfer managerial responsibility for the day to day operations of schools to the district level and away from state administration.”
DeJongh sees this move as better addressing the needs of school children and ensures that more money is spent in the classroom rather than on administration. In addition, the budget increases the appropriation for teacher professional development and certification and all funding for maintenance has been factored into the annual operating budget of the department.
In the Public Safety area, changes have been made to the administrative structure of the Virgin Islands Police Department.
“As I promised when I was sworn into office, I have created separate Chiefs of Police in each district. This has allowed for improved management and a better level of service from our Police Department,” deJongh said Wednesday.
Specific appropriations include: $4 million in funding to upgrade the territorial 9-1-1 system and to purchase new equipment.
“We have also begun to address longstanding officer vacancies in the V.I. Police Department by creating and funding a “recruiter” position in the agency; institute a new recruitment program including outreach off island; institute improved training programs for all officers; establish a joint Cold-Case unit within the Police and Justice departments to address unsolved major crimes and dedicated funding for a police staff psychologist.”
The governor also said in a news conference that the administration has “begun what will prove to be a long and at times arduous, process of addressing the unfunded liabilities that we have accumulated in our Government Employees’ Retirement System.”
DeJongh said that contained in the budget is $30 million towards the effort to include an increase in the employer contribution to the retirement system from 14.5 % to 17.5%. “The effort will be followed by the issuance of a pension obligation bond to ensure that a cash injection is provided to the System while we meet our employer obligations at a higher funding level,” deJongh pointed out.
The budget also provides for: A restructuring of the Department of Housing, Parks & Recreation including the transfer of the housing component and the various loan programs to the Virgin Islands Housing Finance Authority; allowing for improved coordination of local housing resources; enhance the development of affordable housing; continued funding for negotiation of successor agreements for our many expired collective bargaining agreements.
“The submission of a nominal Capital Budget providing funding from the Internal Revenue Matching Fund proceeds to enable departments and agencies to upgrade their equipment and facilities. The General Fund operating budget for Fiscal Year 2008 is based on our net revenue projections of $799.2 million. Most tax and other revenue categories will experience moderate growth. However, Real Property Tax collections will increase with the collection of two calendar years’ property tax bills during the fiscal year. These bills are expected to be based on the new valuations that have been ordered by the District Court,” deJongh said.
DeJongh further explained that as a result of the reduction contributions to the General Fund, the total FY2008 budget projection is 0.6% lower than the most recent FY 2007 revenue estimates of $804.3 million dollars. “This was caused by reductions in transfers from the Internal Revenue Matching Fund which will be used for: The Capital Budget, The Insurance Guaranty Fund and no reimbursement for the Education Department’s federal grant funds.”
Looking towards the remainder of the current fiscal year or through the end of September, deJongh said the economy is expected to show modest growth with the construction and retail trade sectors as the prime movers.
“While changes in the residency and source of income rulings as a result of the American Jobs Creation Act have impacted the EDC program and resulted in a loss of jobs, activity in the tourism sector and strong private sector development are off-setting these losses and sustaining growth,” deJongh said.
The outlook is for stronger growth as we move into 2008, led by construction, manufacturing and tourism sectors, with new hotel construction and other public sector capital projects commencing within the next year.
In a spirit of cooperation, deJongh met with members of the 27th Legislature to present them his budget and asked them to give the proposed spending blueprint due consideration.
In a meeting with the lawmakers, the governor renewed the administration’s commitment to working with each and all of them in the months and years ahead to meet the challenges that we face in addressing our needs as a government and as a community.
“I have pledged to them to know that my door is always open to discuss this budget and other issues in good faith, and our common commitment to the welfare of the Virgin Islands," deJongh told members of the 27th Legislature. | 
