The Legislature has acted. They passed a bill to authorize borrowing the funds necessary to maintain a level of cash flow that would permit this government to operate in the coming weeks and months. And then they voted not to provide the basis by which this essential borrowing would be repaid. This negated their earlier vote. To authorize a borrowing without providing the means of repayment is the same as offering to lend one’s car and then removing the tires.
Every senator at the session today understood what they were doing. Each senator understood fully that to vote against the increase in the Gross Receipts Tax in the absence of any other revenue generating alternative was a vote to dismiss government workers. The administration and their colleagues made it clear that the banks have stated that they will not lend money where there is no demonstration of the commitment to do what it takes to repay the loan they were being asked to make. Eight members of the Legislature voted to not show that commitment to repay the money we sought to borrow.
Without the cash from such a loan we do not have the cash to maintain government services and to pay the workers who provide those services, to pay tax refunds and to pay WAPA so they can buy fuel. In our system of government the so-called “power of the purse” is in the Legislature. Under our law the Executive Branch cannot issue checks that cannot be covered -- and we shall obey the law.
To those seven senators who took the most difficult of votes in voting to raise taxes to save jobs, pay tax refunds and support WAPA, I applaud your commitment to the people of these islands and the seriousness of purpose which has guided your actions.
