Late Thursday, Governor deJongh issued a strongly worded statement in response to an amendment filed by Florida Senator George LeMieux that would alter the nearly century old rum excise tax cover-over program to the detriment of the Virgin Islands economy while unfairly benefiting Puerto Rico. 

In his statement, the Governor said:

Senator LeMieux of Florida today ignored almost 100 years of federal precedent and clear Congressional intent by filing an amendment that drastically alters the rum excise tax cover-over program. His amendment would severely harm the economy of the U.S. Virgin Islands and overtly favors Puerto Rico.

Senator LeMieux’s amendment looks like it was developed alongside Puerto Rican lobbyists. The proposed amendment takes excise tax revenue paid by U.S. Virgin Islands rum makers on rum produced in the U.S. Virgin Islands and directly transfers it to Puerto Rico’s government coffers. Puerto Rico would end up with billions of dollars generated by rum production in the U.S. Virgin Islands. 

As we search for solutions to the economic downturn, America needs smart, thoughtful leadership – not desperate attempts to pander to powerful special interests. Senator LeMieux is directly attacking his fellow Americans in the U.S. Virgin Islands by doing Puerto Rico’s bidding. 

We are strengthening the U.S. Virgin Islands’ economy and stabilizing our government’s finances. The rum cover-over is a long-standing and successful economic development program that has provided benefits to the U.S. territories. 

Furthermore, the rum cover-over program is of great economic and financial importance to the U.S. Virgin Islands. For the first time, we are making full use of these tools given to us, and we have done so without hurting any other location. I cannot understand why Puerto Rico and certain other interests are determined to hold back and undermine the economic interests and future of the U.S. Virgin Islands.

Senator LeMieux’s plan could cause us to default on hundreds of millions of dollars in bonds, which would stop progress on infrastructure projects and environmental improvements, and would force the government of the U.S. Virgin Islands to the brink of receivership. 

By promoting this amendment, Puerto Rico has not only given up any pretense of negotiating their concerns with the U.S. Virgin Islands as we have been asked to do by Congressional leaders, but Puerto Rico now also seems willing to walk away from the long history of friendship and collaboration which has linked America's two Caribbean possessions.

Earlier today, I released a statement denouncing as misinformed and regrettable, public statements made by Senator Alvin Williams claiming “procrastination” in the providing of emergency services on the West End of St. Thomas. 

In my statement, I explained that for months the deJongh-Francis Administration has been working to complete repairs to the facility located in Estate Fortuna so that it can function as a multi-purpose center and provide not only ambulance and emergency medical care to residents on the West End, but also provide expanded fire and police services from the same facility. 

One would hope that the senator might appreciate that simply buying another ambulance does not provide these services. I also noted that in addition to preparing the facility, there is also a need to hire additional emergency medical technicians to properly provide the needed services.

Senator Williams’ press release and radio comments that "because of politics we continue to see procrastination regarding this issue… The ambulances were purchased and are here in the territory…" are at best, unhelpful grandstanding and little more than petty political posturing. All Senator Williams needed to do to learn what steps were being taken with respect to this issue or any other issue of concern to him, was pick up the telephone and call. Surely, that call might have assisted the senator in avoiding making wrong and misleading statements that will only be regretted after the fact.

Jean Greaux is the Government House Communications Director.

On Tuesday, Governor deJongh acknowledged receipt of President Obama’s submission to the United States Congress of the proposed Virgin Islands Constitution together with the analysis of the U.S. Department of Justice. 

The submission expressed the President’s and the Department of Justice’s concerns with the absence of an express recognition of U.S. sovereignty and the supremacy of Federal law while also noting the substantial problems presented by provisions which called for “conferring legal advantages on certain groups defined by place and timing of birth, timing of residency or ancestry…”

The Governor stated that he was pleased that the President had confirmed his concerns that the proposed constitution failed to recognize fully the supremacy of the United States Constitution just as it failed to guarantee that all residents of the Virgin Islands are to be accorded equal rights and equal protections under the law. Governor deJongh again stated his firm belief that such rights and protections must be guaranteed to and protected for all who live in the Virgin Islands. He stated his continued opposition to any proposed Virgin Islands Constitution that fails to achieve this result.

DeJongh said that at the appropriate time his Administration’s position with respect to the proposal will be presented to the United States Congress. Congress will hold hearings on the proposed Constitution on March 17th in Washington.

The deJongh-Francis Administration today launched its latest outreach initiative with the introduction of the "Administrator's Corner" radio program. In announcing the program, Governor deJongh said:

"The weekly radio program hosted by island administrators: Dodson James, Leona Smith and Barbara Petersen is a two hour forum designed to allow residents of the Virgin Islands to present their concerns about issues and challenges they face in the respective communities whether they reside on St. Thomas, St. Croix, St. John or Water Island."

He added that a better informed community can inform us in government as we we work together to make a better Virgin Islands for all of us. 

The Administrator's Corner can be heard each Tuesday morning at 8 a.m. on radio station WSTX (970 AM). The program is also live on the Internet at www.wstxam.com.

St. John Administrator Leona Smith and St. Thomas/Water Island Administrator Barbara Petersen participate take a listener's call during the premiere of the " Administrator's Corner" program on WSTX (970 AM) on March 2, 2010.

St. Croix Administrator Dodson James answers a question during the premiere of the " Administrator's Corner" on WSTX (970 AM) on March 2, 2010.

Earlier today, Governor deJongh announced that several representatives of his Administration have contributed their signatures to a letter requesting the federal government modify its definition of the poverty line.

Members of the Virgin Islands Poverty to Prosperity Working Group have joined their colleagues in 13 U.S. states in recommending that poverty measuring guidelines be changed to ensure that nutrition programs, food stamps and welfare benefits are within reach of families who desperately need them. The Poverty to Prosperity Working Group is part of the Virgin Islands Children and Families Council, chaired by First Lady Cecile deJongh. This group leads the effort to achieve the Governor's goal of reducing poverty in the territory by 50% by 2020.

“The call for federal action is in line with what we are trying to do here in the territory to help low-income families meet the many challenges of raising children. The recommendations also echo those made by the National Academy of Sciences over a decade ago,” the Governor said in his announcement.

A total of 131 representatives of poverty task forces from the V.I. and various states joined to request the federal government implement a new poverty income measure. The Center for Law and Social Policy sent the letter to U.S. Representative Jim McDermott, U.S. Senator Chris Dodd and Rebecca Blank, Under Secretary for Economic Affairs with the U.S. Department of Commerce.

Currently, the poverty line is set at an annual income of $18,310 for a family of three. In the Virgin Islands, the average income of a three-person family is $35,364. That figure is 19 percent lower than Mississippi, the lowest income state in the country, and 38 percent lower than the national average.

While earnings are lower in the territory, costs are significantly higher. As an outlying territory, Virgin Islands families must purchase more expensive goods, energy and other necessary items. Those increasing financial pressures have placed many families in the territory in a financial crisis.

According to the 2000 U.S. Census, 35 percent of families with children live below the federal poverty threshold in the territory, and 41 percent of families with children under the age of 5 are in poverty. The numbers are even more alarming for single parent households headed by females. 

The current income measure that establishes poverty is based on outdated assumptions about the expenses faced by American families. The letter calls for a more comprehensive measure of poverty that considers the rising costs of housing, health care and child care for families with children.

“We are determined to undermine the roots of poverty in the territory. The ultimate goal is to cut in half the number of families living in the Virgin Islands below the poverty line within the next 10 years,” the Governor added.

Governor deJongh and Senate President Hill recently received a donation of $50,000 for the Virgin Islands Haiti Relief Fund from Fortune Brands, Inc,  the parent company of Cruzan Rum. The generous donation was presented by Matthew J. Shattock, President  and CEO of Beam Global Spirits and Wine, Inc at a ceremony at Government House, St. Thomas last week.

Governor John P. deJongh, Jr. and Senate President Louis Patrick Hill receive a $50,000 donation to the Virgin Islands Haiti Relief Fund from Matthew J. Shattock, President and CEO of Beam Global Spirits and Wine, Inc. the parent company of Cruzan Rum. The ceremony was held on February 25, 2009 at Government House, St. Thomas.

On receiving the check Governor de Jongh said, 

“We deeply appreciate this generous contribution from Fortune Brands and will ensure it is used to bring real assistance to the people of Haiti from the people of the United States Virgin Islands. This donation adds to the thousands of dollars already pledged by Virgin Islanders to assist emergency efforts for our Caribbean brothers and sisters during this difficult time.”

The donation was received by the Governor and Senate President on behalf of The Fund, which they jointly established as part of a territory-wide response to the devastation wrought on Haiti by last month’s paralyzing earthquake. 

Matt Shattock, President and CEO of Beam Global Spirits and Wine, the spirits business of Fortune Brands, said at the ceremony:

“The devastation in Haiti is a heartbreaking tragedy, and the Fortune Brands family is proud to play a part in the worldwide humanitarian response. Our commitment to Haiti earthquake relief is especially meaningful to our associates at Cruzan Rum on St. Croix, and we are pleased to partner with the Virgin Islands Haiti Relief Fund on their behalf.” 

To date, Fortune Brands and its employees have committed more than $130,000 to Haiti earthquake relief through corporate donations, employee contributions and matching gifts. 

The $50,000 check brings to $270, 000 the amount pledged to the fund to date. A significant portion of the donated contributions was raised through the VI Haiti Relief Telethon, a six-hour fundraiser broadcast live on WTJX Channel 12 on January 31, 2010, produced in conjunction with the Offices of the Governor and Senate President. 

Senate President Hill said, 

"Cruzan Rum, the Nelthropp family, and their dedicated employees have a history of coming to the aid of the Virgin Islands Community when disaster strikes. Fortune Brands continues their commitment to be a socially responsible company, connected to its Caribbean community, and has set a standard of excellence for corporate citizenship with their generous donation to the Haiti Relief Fund."

In addition to the Fund and Telethon, a special program has been launched through Innovative Telephone to enable the Haitian community in the territory to place free calls for 30 days to family, relatives and friends in Haiti. The call center in St. Thomas has been in operation for over a week at Tutu Park Mall in space donated by the Mall and is supervised by The Lion’s Club of Charlotte Amalie. The centers in St. John and St. Croix will be operational shortly.

On Wednesday, Governor deJongh reconfirmed the Administration’s commitment to a positive and mutually beneficial relationship with Cruzan VIRIL, Ltd., the makers of Cruzan Rum, at a private meeting at Government House, St. Thomas with Matthew J. Shattock, who recently took the helm of Cruzan’s parent company, Beam Global Spirits and Wine, Inc. as President and CEO.

“Mr. Shattock and I have a common vision for Cruzan Rum and its relationship to the people of St. Croix and the Virgin Islands. Cruzan is a signature product of our territory, and the expanding distillery is an important element of St. Croix’s economic landscape,” deJongh said.

The courtesy meeting between Governor de Jongh and Mr. Shattock signaled the already strong ties between Beam Global Spirits & Wine, Inc. and the Virgin Islands Government. On October 6, 2009, the GVI signed an agreement with Fortune Brands, solidifying a thirty year public-private partnership that continues the diversification and growth of the Virgin Islands’ economy and locks in an expansion of production capacity for Cruzan Rum in the territory. Beam Global is owned by Fortune Brands. 

The economic development and investment agreement represents one component of Governor de Jongh’s innovative financial and economic plan to expand and secure the development of the Territory’s rum industry on St. Croix, providing invaluable stability to the USVI government’s finances.

In recent months, Cruzan Rum launched a new marketing campaign to reinvigorate its brand, and has substantially invested in a state of the art, wastewater treatment facility to remediate the company’s past environmental issues. The groundbreaking for the facility is April 15.

“It was a pleasure to meet with Governor deJongh and discuss the progress of his economic development strategy and our plans at Cruzan Rum to build the new wastewater treatment system and expand the distillery. I look forward to returning in the coming weeks to join with the Governor for the groundbreaking of the wastewater treatment project, which will help the Virgin Islands set a new environmental standard for rum production,” Matthew J. Shattock said.

The St. Croix-based rum industry provides a dependable revenue stream, creates jobs and is a source of pride and prestige for the territory. 

Shattock, a former British tank troop commander, was appointed President and CEO of Beam Global Spirits & Wine, Inc., in March of 2009 and assumed his current position in April. He will be responsible for the company’s portfolio of nearly 100 brands (eight of the world’s top-100 premium spirits), more than a dozen global operating and commercial facilities and some 3,000 employees worldwide.

Shattock joined Beam Global after six years of leading business units at Cadbury Plc., the global confectionary company. Before that, Shattock spent 16 years in senior management and brand development positions at Unilever, a manufacturer of food, home care and personal care products. When Unilever merged with Best Foods in 2005, Shattock became chief operating officer of the $3 billion food and beverage business.

“We here in the Virgin Islands wish Mr. Shattock all the best with his family’s move from the United Kingdom to Chicago, and are confident that we will maintain a rewarding relationship with Beam Global Spirits & Wine as the new CEO guides the company.”

The National Governor’s Association this week called on Congress to extend the enhanced federal match for Medicaid (FMAP), enacted by the American Recovery and Reinvestment Act (ARRA), for two additional quarters.

The February 21st letter to Congress signed by 47 governors, including Governor deJongh, cited the ongoing effects of the recession on state and territory budgets and requested the timely extension of enhanced FMAP to enable legislatures to finalize Fiscal Year 2011 budgets that will maintain services and continue the stabilization of the economy. 

DeJongh fully endorsed the nation’s governor’s call to extend the program, saying 

“ARRA’s enhanced FMAP program is critical to our ability to continue to provide and expand health care services where they are needed during this economic downturn. We are appreciative of the territory’s inclusion in ARRA and the 30% increase in our Medicaid allotment, and have requested that Congress extend the program through the lingering budget shortfalls the recession has created.” 

ARRA provided for 27 months of enhanced FMAP, which is currently due to expire December 31, 2010. 
In addition to the positive impacts of enhanced FMAP on health care services, deJongh noted that the extension is needed for continued assistance with economic recovery, 

“ARRA’s provisions were crafted with the intention of presenting and creating jobs and providing economic stimulus, as well as providing direct assistance where necessary. I am fully in support of their continuation until our economy has sufficiently recovered, in order to mitigate the recession’s negative effects on the territory’s employment landscape and economic stability.”

Just ahead of today’s historic White House summit on healthcare reform, Governor deJongh called on Congressional leaders to restore the $14.35 billion in additional federal funding for the territories that was earlier agreed to by House and Senate negotiators in any final healthcare bill passed by the Congress. 

In a strongly-worded letter to Speaker of the House Nancy Pelosi (D-California) and Senate Majority Leader Harry Reid (D-Nevada), deJongh expressed his disappointment with the latest White House healthcare plan which provided only modest increases for the territories in Medicaid funding and excluded residents in the U.S. Territories from participating in the healthcare exchanges where uninsured individuals can access more affordable health insurance plans. The deJongh letter was also signed by the governors of Puerto Rico, Guam and the Commonwealth of the Northern Marianas Islands. 

DeJongh, who has led the efforts of the territorial governors in the healthcare fight in Washington, said that the President’s proposal for healthcare reform released on Monday of this week was “an important additional step” in the long road to “ensuring that all Americans have a right to affordable and quality healthcare,” but noted that the President’s proposal, “for the most part, left out the four and one-half million Americans who live in the U.S. territories.” 

Calling for adoption of the House provisions and funding for the Territories, deJongh said that “the current unfair disparities in federal healthcare policy can and should be addressed in any final healthcare bill. Such a decision is required by the principle that fair and equitable treatment should extend to all Americans under law and should not be contingent on where they were born or where they reside.” 

Yesterday, Governor deJongh met with members of the India Association at the Indian Cultural Center on St. Thomas. The meeting was held to discuss the territory’s top priorities and was an opportunity for the Chief Executive to hear the concerns of the Association on a wide variety of topics from downtown preservation to dredging and cruise ship activity to Main Street improvements in process. During the meeting the Governor delivered an overview of the territory’s economic and financial position, pointing to the projected shortfall of $170.1 million this fiscal year, as well as the cost-savings measures in place to help stabilize the economy. 

During his remarks, the Governor said:

“With all the challenges before us as a nation and as a territory, my Administration continues to embrace the opportunities for progress. While 2010 will be a difficult year for us all in this third year of a national economic crisis, I am optimistic that we are poised well for growth. There is light at the end of the tunnel. I also take this opportunity to express my appreciation to you for your continued belief in the future of the territory."

"While 48 states have major deficits and most have laid off workers or increased taxes, my Administration has the confidence through the agreements with Diageo and Cruzan Rum to pave the way forward in a manner that sets the stage for continued growth. However, as a necessary measure, we will also need to continue to borrow funds to help spur economic activity, consumer spending, economic growth and investment in our infrastructure.”

Governor John P. deJongh, Jr. with members of the the India Association Board. The Governor spoke to the group on February 22, 2010 at the Indian Cultural Center on St. Thomas.

Pointing to the importance of retailers to the Virgin Islands tourism-based economy, Governor de Jongh underscored their challenges in facing the economic crisis as similar to the ongoing challenges of the V.I. Government. “With the Oasis of the Seas visits to St. Thomas every Tuesday and projected cruise ship passenger arrivals and airlift capacity numbers on the rise territory-wide, my Administration is committed to taking a proactive stance in supporting Main Street so that together we can anticipate and address our collective concerns. It is my intent to ensure that the historic relevance of Charlotte Amalie and its economic importance are given the attention deserved.” 

From January 2009 to January 2010, cruise ship passenger arrivals on St. Thomas increased at a rate of 10.3% and airlift capacity increased by 25%. Referring to continued efforts to support economic development throughout the territory, Governor de Jongh noted, “We are embracing opportunities that advance our economy and move the territory forward, measures that are all the more important locally given the economic worldwide recession.”

The Governor also spoke of the $70.9 million in State Fiscal Stabilization monies soon expected in the territory which will provide additional dollars for education services, including keeping teachers in the classrooms and preventing the cutting of valuable education programs at the Department of Education and UVI. 

“It is important that we maintain economic activity and keep up government services. The limited hiring freeze has made possible a net savings of $30.7 million at a time of continued projected revenue losses and necessary expenditure reductions. However, we are continuing to recruit teachers, police officers, and other key personnel.”

Governor John P. deJongh, Jr. listens to a question posed by India Association Acting President Pash Daswani during a panel discussion following the Governor's speech to the group on February 22, 2010 at the Indian Cultural Center on St. Thomas.

India Association Acting President Pash Daswani facilitated a discussion that covered a wide array of topics, including: the status of the WICO/Port Authority lease; the proposed harbor dredging off St. Thomas; airlift negotiations; cruise line activity for 2010 and beyond; Main Street improvements and enhancements in process; the enforcement of barkers; taxi drop-off stations on lower Main Street; noise control ordinance and enforcement; crime and policing issues; surveillance camera placement on Main Street; peace officer status of federal agents; education issues, especially regarding hospitality and tourism training; the Administration’s efforts to attract new hotels to the Virgin Islands; downtown preservation of historic areas and other improvements to sidewalks; and property taxes.

Throughout the meeting Governor de Jongh reiterated the importance of government’s responsiveness to the community. The Governor also thanked the members of the India Association for the opportunity to address key, territorial issues in an open and frank discussion.

As a final note Governor de Jongh commended the India Association’s recent donation of $23,000 to the V.I. Haiti Relief Fund. A check was presented to the Governor during a January 31st telethon on WTJX.

This afternoon, Governor deJongh was joined by members of the community at a groundbreaking ceremony at Mountain Top. The groundbreaking marks the third time the facility will be rebuilt, signaling the importance of the iconic site to St. Thomas and the Virgin Islands community. As a premier tourism attraction known throughout the world, the Mountain Top site sets the territory apart from other Caribbean destinations. The rebuilding of the area is seen as a new beginning for the tourism attraction, which has in recent days sparked an outpouring of support and positive sentiments in anticipation of the planned reconstruction.

“The future of St. Thomas and the Virgin Islands rests on tourism, and with this effort, we are signaling the community’s commitment to investing in one of our most well-loved attractions, a project that will create 30-50 Virgin Islands jobs at a time when our nation is struggling with lay-offs, deficits, and other economic challenges. It is truly an honor to celebrate this new beginning for Mountain Top, as we continue to progress our tourism product forward."

The Mountain Top facility was rated by National Geographic magazine as one of the 10 best views in the world, and was destroyed by a catastrophic fire on May 18, 2009. In cooperation with Attraction Management Group, LLC, Springline Architects, LLC, First Bank, and others, the owners are committed to rebuilding the facility with a vision to regain its placement as a top Virgin Islands tourism attraction.

During his remarks at the event Tuesday, the Chief Executive acknowledged the massive and coordinated emergency response to the May 2009 fire and complimented all parties involved in the rebuilding effort, noting the “considerable investment and enormous faith” of various community partners dedicated to restoring and upgrading the facility.

Also present at the groundbreaking ceremony were: Lieutenant Governor Gregory R. Francis; Acting Commissioner of Tourism Monique Sibily-Hodge; Attorney Tom Bolt, who served as Master of Ceremonies for the event; Rabbi Asher Federman; Vice President of Attraction Management Group, LLC Abe Franco; Springline Architects, LLC representative Michael de Haas; Senator Patrick Simeon Sprauve; Senator Carlton Dowe; and tourism industry leaders.

During a meeting on Friday with executives of the airlines serving the territory, Governor deJongh renewed his efforts in addressing the influx of weapons to the Virgin Islands by imploring the airline executives to work with their corporate and federal counterparts in establishing a process of reporting in-bound firearms that are checked-in as baggage by passengers headed to the territory. 

“We continue to sensitize the airline officials to the challenge we are facing with weapons coming into the Virgin Islands. We are asking for the airlines to submit this information so that when a plane lands here, we are aware of every weapon that comes in and who the owner is. There was an open and frank discussion on next steps, I believe the airline officials recognize the seriousness of our concern."

Police Commissioner Novelle E. Francis, Jr., who attended the meeting along with leaders from the Port Authority and Tourism Department, said the deJongh-Francis Administration has been working to establish this reporting system for some time, having already reached out to top airline officials and the leadership of the Transportation Security Administration, TSA.

Airline executives also wanted the opportunity to update both the Governor and the leadership of the V.I. Port Authority on some of the industry’s concerns which challenge their operations on a day to day basis. 

The Governor thanked Joanne Bohr of Worldwide Flight Services, the company which represents a number of the major airlines serving the territory, for organizing the meeting was an opportunity for all involved parties to share their concerns and to discuss how those concerns can be addressed.

Some of the other key areas of discussion included:

Baggage belt and operation. Although long-term planning is underway to enhance the baggage belt areas at Cyril E. King Airport, there is a need to develop a short-term solution given that the current facility cannot accommodate the volume of inbound baggage. VIPA officials said once the solutions are identified, officials may consider implementing a baggage belt charge as a funding source. 

Food and beverage concessions. VIPA officials were asked to review the contractual relationship with Concessions International, operators of the airport food and beverage concessions. Officials said neither the VIPA nor passengers are being served well by the operator given the limited hours of operation and the limited food selections. 

The presence of derelict aircraft in spaces that could be generating revenue for the V.I. Port Authority. Several disabled aircraft, including those owned by a defunct cargo airline, are occupying these spaces. The Governor noted that with March expected to be a busy month as regards private aircraft arrival to St. Thomas, there is concern about the lack of available parking space. He said that the Port Aurhtoity will discuss the legal options in terms of having the disabled aircraft removed.

At the meeting, Port Authority Executive Director Kenn Hobson was accompanied by Chief Engineer Dale Gregory and VIPA Director of Public Information Monifa Marrero. Also, Cyril E. King Airport Manager Jose Nazario, Police Commissioner Novelle E. Francis, Jr. and Tourism Commissioner Beverly Nicholson-Doty attended the meeting.

The airline executives included: David Alvarado, General Manager, American Airlines and American Eagle; Gene Robinson, General Manager, Cape Air; Gerardo Narvaez, General Manager, Continental Airlines; Seaborne Aviation St. Thomas General Manager John Lathuillerie; Owner of St. Thomas Jet Center Michael Hancock; United’s Regional Manager Steve Sheil; Lecaldo Sylvester and Ray Stackhouse of U.S. Airways and St. Thomas and St. Croix executives of Worldwide Flight Services including: Victor Barry, Ricardo Edwards and Joanne Bohr. Delta Airlines was represented by Dan Garland of Corporate Facilities, Warren Hoss of Corporate Headquarters and General Manager for St. Thomas and St. Croix, Bob deLugo.

DeJongh said the meeting was productive and showed the commitment of his Administration to hear the concerns of the airline executives whose companies are responsible for thousands of visitors who call on the Virgin Islands each year.

Earlier today, Governor de Jongh applauded the Health Department’s progress with the Ryan White Part B Program following a site visit by federal officials, who praised the program’s turnaround. The program, which pays for HIV/AIDs medications for clients under its AIDS Drug Assistance Program and commonly referred to as ADAP, lost $400,000 in funding last year because of past compliance issues dating back to 2007. Since that time, officials with the Health Resources and Services Administration (HRSA), which administers the grant, has held frequent meetings via conference call with the Office of the Governor and the Department of Health to ensure that compliance issues were met.

DeJongh said that, as a result of the progress, the Department of Health is eligible to apply for a variety of funds including a new grant of $1.1 million as well as supplemental funding under ADAP, Minority AIDS Initiative and Ryan White Part B, which would cover primary healthcare for AIDS patients. 

“I am extremely pleased that we were able to turn this program around as this funding is essential for residents who rely daily on critical HIV medications. As governor, I remain committed to ensuring that all programs benefitting the public remain in compliance so that we are never faced with losing grant funding over issues, that often times, can easily be rectified.”

At a site visit last month, HRSA project officers met with deJongh Administration officials and praised the fact that all mandatory reports to the federal agency were on time and the fact that the Department of Health had medical coverage for clients in both clinics. 

DeJongh said Monday that in addition to being eligible for more grant funding, HRSA has also offered technical assistance to the department to identify new patients. Health Commissioner Julia Sheen also applauded the turnaround, noting that the department was on its way to developing a model program. “Nearly a year later, in the words of the consultants and federal project officers, the Ryan White Part B Program has officially put out the fire in addressing all the compliance issues that caused the penalty,” she said. 

Last week, The U.S. Department of Health and Human Services has announced grant awards to help health care providers advance the adoption and meaningful use of health information technology (HIT). One million dollars was awarded to the Virgin Islands Department of Health to help facilitate a territory-wide Health Information Exchange (HIE). This award will enable the DOH to take a leadership role in achieving HIE in the territory, developing governance structures, technical services and capabilities, and policies required to support the infrastructure necessary to the meaningful use of Electronic Health Records (EHR) by providers through information exchange.

Governor deJongh welcomed the award announcement, saying:

"I extremely excited by this opportunity to participate on the front lines of our nation’s health care technology transformation, and pleased that the Department of Health is continuing to take a leadership role in that effort. These projects, along with the Broadband Initiative currently underway to provide robust, high-speed internet access capability across the territory, will help us establish a world-class health information environment in the U.S. Virgin Islands, to the benefit of the entire territory."

Establishment of a territory level HIE is a critical step towards the goal of a nation-wide interoperable, private and secure electronic health information system. The resulting ability of all providers in the Territory to exchange health records electronically will help modernize our health care system, improve its efficiency, and improve the quality of care for everyone in the Territory. This grant award will help develop the electronic infrastructure necessary to that goal. As a first step, the Department of Health is working to appoint a Territorial HIT Coordinator, a condition of the grant. This individual will serve as the lead on the HIE project, coordinating activities among the many stakeholders and providing overall guidance under the auspices of the DOH.

The National Coordinator for Health Information Technology, Dr. David Blumenthal, said of the grant:

“I applaud each awarded entity for its dedication to the mission of improving the quality of health care and for the leadership and guidance it will provide.” 

This grant complements the $231,786 grant announced on December 8, 2009 for development of a comprehensive territorial plan for HIT and establishment of an EHR incentive program for providers. It is also part of the HIT transformation underway in the territory that started with the award of $815,760 from the U.S. Department of Health and Human Services for the design, acquisition and implementation planning of a Medicaid Management Information System (MMIS) last October 28.

Recovery in Action: One Year Later
Posted by Jean Greaux on February 17, 2010 at 5:10 PM AST

Ed. Note: Cross-posted from the VI Recovery Blog

On today’s first anniversary of the American Recovery and Reinvestment Act, Governor deJongh updated Virgin Islanders about the benefits the territory has seen from President Barack Obama’s stimulus plan.

He said that the Recovery Act has created jobs, secured public services, eased hardships, stabilized small businesses and laid a foundation for economic recovery in the Virgin Islands, as well as across the nation. 

"Members of my administration, including the V.I. Office of Economic Opportunity, have worked tirelessly over the past year to obtain and implement stimulus funding that would assist the Virgin Islands and its people in these difficult economic times. We in the territory deserve the same opportunities at prosperity as our fellow citizens across the country."

“I would like to join many other governors in acknowledging the positive effect the American Recovery and Reinvestment Act (ARRA) has had on our economy, security and livelihood."

Over the past year, the territory has received more than $156 million in formula and competitive awards. That money from the Reinvestment Act has gone to 19 different government, semi-autonomous, business and charitable organizations that met the federal requirements.

The Governor noted that the ARRA legislation has provided $45 million in direct fiscal relief to people who are struggling through veterans’ benefits, food stamp programs, small business loans and social security benefits.

“We have received more than $85 million in competitive grants that have gone towards fiscal stabilization, transportation, marine security and law enforcement. We have also used our stimulus dollars to expand clean-energy initiatives, health and human service benefits and job creation programs. Almost 200 people are employed in the territory because of the Reinvestment Act,."

Many government and private economists have attributed the creation of two million jobs across the country to the Recovery Act. It is now clear that the stimulus plan helped to cushion the greatest economic crisis since the Great Depression and has provided a foundation for economic growth in the near future. 

In the fourth quarter of 2009, the U.S. economy grew by an unprecedented 5.7 percent. Many economists attribute the growth to the stimulus spending. The Recovery Act has also provided more than 100 billion in tax relief to families and businesses, and saved several U.S. states from drastic and dangerous cutbacks in education, health care and law enforcement. 

Governor deJongh stressed that this is only the beginning:

“The Recovery Act was designed to infuse money into the economy gradually in order to maintain a solid recovery—we will see peak spending reached during this year. The Virgin Islands will continue to benefit from this crucial piece of economic legislation, so that our territory will rise back into economic health along with the rest of the country.” To this end, Governor deJongh stands with President Obama, who is working diligently to find more solutions in creating jobs and driving economic growth throughout our country. “President Obama says he will not be satisfied until our nation’s economy is back on a firm footing. I make the same commitment to this territory."

The Governor will continue to improve upon our partnerships with Washington, D.C. and the President’s administration to successfully implement stimulus spending and keep moving away from the near depression we were looking at exactly a year ago. In doing all this, the deJongh Administration has sought to maintain transparency, in line with the President’s mandate for the dispersion of stimulus funds."

To learn more about how federal stimulus money is being obtained, and spent, in the Virgin Islands, visit GovernordeJongh.com/Recovery

Governor deJongh is in Golden, Colorado this week meeting with officials from the Department of the Interior, the Department of Energy and the National Renewable Energy Laboratories (NREL) on energy issues.

Governor deJongh said this afternoon that he has executed a Memorandum of Understanding which establishes the terms of the USVI’s relationship as part of the Energy Development in Island Nations (EDIN) project. The EDIN project includes the Virgin Islands in a global partnership that seeks to develop energy efficiency and renewable energy technologies within small island nations in the Caribbean and the Pacific. 

Assistant Interior Secretary Anthony Babauta signed the MOU on behalf of the Department of the Interior. Joe Garcia, Director of the Office of Economic Impact signed on behalf of the Department of Energy. DeJongh announced in April 2009 that the territory had been selected to participate in the EDIN pilot project. The Governor has been in Colorado since Monday at the invitation of the Department of Energy and the National Renewable Energy Laboratories (NREL). 

Joe Garcia, Director of the Department of Energy's Office of Economic Impact, Governor John P. deJongh, Jr. and Assistant Interior Secretary Tony Babauta sign a Memorandum of Understanding relative to the USVI’s relationship as part of the Energy Development in Island Nations (EDIN) project

During opening remarks at NREL visitor’s center, the governor set a goal for the territory of reducing the consumption of fossil fuel derived energy in the Virgin Islands by 60% by 2025. “There is no reason why the Virgin Islands cannot be the leaders in clean energy deployment in the Caribbean,” deJongh said. The Department of Energy has pledged to provide the technical assistance to the Virgin Islands for producing the technical and economic tools necessary to realize the goals of this initiative.

Listen to the Governor's Remarks .mp3 (4 MB)

DeJongh pursued participation in EDIN Partnership as a resource in helping the Territory achieve the objectives of the Virgin Islands Comprehensive Energy Strategy developed by the Virgin Islands Energy Office. The U.S.V.I. EDIN Project is designed to bring about fundamental and sustained transformation in the way in which renewable energy and energy efficiency resources are planned and used in the Territory.

WAPA Executive Director Hugo Hodge, Jr. who is also attending the workshops outlined several initiatives that are underway as part of the EDIN project including the deployment of distributed solar energy and grid interconnection with the island of Puerto Rico “We hope to have some significant wins via this partnership between the Virgin Islands, the Department of the Interior, and the Department of Energy.” Also present at the workshops were representatives of the Water & Power Authority, the V.I. Energy Office, the Public Services Commission, the University of the Virgin Islands, and various other public agencies, as well as Senate President Louis Patrick Hill and At-Large Senator Craig Barshinger.

Listen to the WAPA Executive Director Hodge's Remarks .mp3 (2 MB)

Officials from Hawaii and Kodiak, Alaska are in Golden, Colorado presenting case studies on how their islands have approached deployment of renewable energy. Other workshops include promoting green jobs and industries; landfill gas conversion; financing strategies for renewable energy and energy efficiency; advanced vehicles and fleet planning; energy efficient building design, and energy savings performance contracts. 

DeJongh returns to the territory on Thursday. 

Governor deJongh is encouraging Virgin Islanders to continue to support the relief effort to Haiti at an upcoming concert performance by more than a dozen local musicians on St. John:

“Our Virgin Islands musicians are contributing their talents to raising money for this worthy cause, a critically important effort that is saving lives and providing needed emergency care. In cooperation with groups and organizations throughout the territory, along with Senator Hill’s Office, my Administration continues to raise awareness on the situation in Haiti with the goal of providing both short-term and long-term assistance for the people of Haiti."

The Haitian Relief and Goodwill Concert, a grassroots effort organized by local musicians, will take place between noon and midnight on Saturday, February 27, 2010 at the Winston Wells Ballpark on St. John.

Donations collected at the concert will support the Doctors Without Borders non profit organization in their efforts to provide medical relief to earthquake-torn Haiti.

The event is the brainchild of Phillip Pickering and Inner Visions Band, who reached out to St. John Administrator Leona Smith and Ira Wade at the Department of Public Works for coordination assistance.

The St. John Administrator’s Office offered assistance with informing the public about the concert and collecting donations. The V.I. Department of Public Works has provided a stage, chairs and other equipment.

Performing at the ballpark will be Cool Sessions Brass; Ah We Band; Inner Visions; Wrecktion Band; Michael Beason; Echo People; Chris Carsel and Co.; Mighty Groover; Slammin’; Malon and the Sunshine Band; The Pan Dragons; T Bird & Friends; Percy’s Sound System; Kat, T-Bird & Wanda and more performers.

Donations for Doctors Without Borders will be accepted at the gate, and food and drinks will be on sale inside.

Governor de Jongh thanks the Virgin Islands community for its continued support of Haiti’s relief effort and encourages all St. Johnians to participate in this important fundraising opportunity for our Caribbean brothers and sisters in need.

For additional information, please contact St. John Administrator Leona Smith at 776-6484. 

Last Friday, joined by Lt. Governor Francis, Governor deJongh convened his first Cabinet meeting of the year at the Arthur Abel Complex in Frederiksted, St. Croix. The complex houses the Office of the Governor on the west end of the island. The meeting agenda included a discussion on the status of union negotiations, an update on the relief effort for Haiti, the rehiring of retirees into government service and an update on the state of the government’s finances in light of upcoming budget hearings.

Chief Labor Negotiator Valdemar Hill provided an overview of current labor negotiations and proposed that labor management committees be established within the Executive Branch departments and agencies. “This would be done in order to preclude some grievances and reduce the amount of money that is presently spent in arbitration. Partnership is key in solving the existing problems.” The governor has signed an Executive Order facilitating the formation of the labor-management committees. “These committees will advise the department and agency heads in the development of labor management policies and other related areas to promote and enhance the relationship between employer and employees,” the order states. Hill also said Friday that he has been instructed to resume negotiations with unions having expired contracts.

DeJongh pointed out that the government has done a great job in contributing to the ongoing relief effort in Haiti. “But I am pleased to note that our children in public schools were quite successful in their fundraising for Haiti.” Government House point of contact on Haiti, David Edgecombe, updated the Cabinet on the ongoing efforts. The January 31st telethon was a huge success, he said, adding that call centers have been developed at Tutu Park Mall for people to make free calls to Haiti. The call center opened on Monday. Edgecombe also reported on an organizing effort now taking place where goods will be collected at various locations throughout the territory, sorted at Bellows International before being prepared for shipment to Haiti. “Bellows has graciously donated the floor space at their old warehouse site to allow us to develop a clearinghouse and sorting center for the goods that will be shipped to Haiti.

Governor deJongh led the discussion of the existing policy for the rehiring of retirees. “In the first quarter, 347 employees retired. Our new policy will require each agency to identify those persons who will be required to be brought back into service after retiring. Reasons must be given as to why the employees service is needed and a detailed listing must be provided as to what projects the employee will be working on.” 

Noting that February 17th will mark the first year of the American Recovery and Reinvestment Act, commonly referred to as federal stimulus legislation, Governor deJongh asked that representatives of the Office of Economic Opportunity within the Public Finance Authority update the Cabinet on the status of federal stimulus funds in the Virgin Islands. Marian Prescod of 3P Consultants noted that the Virgin Islands has received more than $156 million in formula and competitive awards. Prescod invited everyone to visit the Office of Economic Opportunity web site at www.GovernordeJongh.com/recovery/oeo for the latest ARRA related information. I encourage every Commissioner and agency head to go after more grants and to take full advantage of all opportunities made available through the ARRA,” deJongh said.

Budget Director Debra Gottlieb in her overview of the financial condition of the territory said that preliminary reports indicate that for Fiscal Year 2009, the government’s operating deficit was in excess of $300 million. To help fund this deficit, the government utilized available cash balances in excess of $150 million, borrowed $43.6 million from the Insurance Guaranty Fund, and drew approximately $100 million against the approved $250 million line of credit to maintain government services and employment. Director Gottlieb stated that the government continues to reduce expenditures and allotments to miscellaneous appropriations and reducing the size of government through its attrition program. DeJongh also addressed issues ranging from the continued hiring freeze, the need to reign in the cost of overtime and the more efficient use of government vehicles. 

The governor spoke briefly about the work that has taken shape over the last three years to improve relations with the Delegate and the federal government. DeJongh noted that the congressional outreach will continue. 

DeJongh later urged the agency heads to come into compliance with law which requires that automated telephone systems not be used as the first point of contact with the public. He said while most departments had complied, others still utilize auto attendant services. “Any member of the public calling on our agencies for information or service should be greeted by a human being who can channel their call to the proper person for service. We should not continue the practice of having automated answering services be the primary point of contact with our residents.” 

This afternoon, Governor deJongh released a seven-page letter addressed to Mary L. Kendall, Acting Inspector General of the Department of the Interior, in which he responded strongly to the Inspection Report prepared by the local office of the Inspector General with respect to security enhancements made at the Governor's property.

View/Download the Governor's Letter .pdf (3MB)

The Governor condemned several aspects of the Report as well as the overall quality of the report. The Governor also challenged many of the Report’s findings and conclusions and raised questions around specific sections including: 

• The fact that the Report failed to set forth the full and correct record of events;
• It failed to quote or correctly analyze the law which authorized the use of appropriated funds;
• It misapplied the law with respect to the interpretation of statutes;
• And the Report failed to follow the Inspector General's own Standards for fair and complete investigations. 

The Governor's response also noted that the IG failed to set forth the official written record of what took place after he was informed that the government owned no secure and appropriate housing for him and his family after his election in November, 2006. The Governor’s response outlined how he made the decision to live in his own home rather than create a far greater expense to the territory by refitting Estate Catharineberg. Before finalizing that decision, the Governor insisted that two steps be taken before anything could be done to implement security improvements:

Step One was to get an answer as to whether any public funds could be used to improve private property in order to provide security for the Governor which was handled by the Opinion of the Attorney General finding such a use of public funds to be legal. 

Step Two was to identify appropriate funds for such work which was begun with a letter dated January 30, 2007 outlining specifically the security enhancements and other work, but not mentioned by the Report, and completed by the Legislature with the reprogramming of funds as set forth in Section 17 of Act 6917, which was passed unanimously by the Legislature in March, 2007 

The Governor's response noted that the language of the legislation in question was plain and clear. The IG's Report not only misinterpreted the plain language of the statute, it also misquoted the statute’s language in the Report. 

In his letter, the Governor stated emphatically that, "It is difficult for me to understand how so fundamental and basic a mistake could have been made…In this case the error only adds to the underlying problem with the conclusions reached." The Governor also said, "The Report is not only unfair, and incomplete, it accomplishes this in the course of an inquiry that was not even necessary" as the law does not permit going beyond the plain language of a statute where there is no ambiguity as was the case here.

After a full analysis of the statute detailing the error of the Report’s statement that the reprogramming contained in Section 17 addressed only roads, the Governor went on to point out several other concerns including:

The Report’s failure to mention that other projects including construction of vaults at the East End Cemetery, Goat Hill paving and drainage improvements, and drainage improvements of Route 82 and at Plot #3, Estate Princess were also a part of the same legislative reprogramming; 

The remarkable fact that the IG’s investigators interviewed only some, but not all, of the Senators who enacted the reprogramming, but did not interview the primary sponsor of Section 17.

In responding to two of the recommendations made in the IG's Report, the Governor agreed with the following:

That the housing of future governors needs to be addressed locally and that the provision of the Organic Act that states that the official residence of the Governor shall be Government House, St Thomas needs to be clarified.

That future security reviews as to how to enhance security at the private residences of future governors need to be done in writing and with closer adherence to agreed upon standards. 

The Governor stated that he intended to take the first matter up with the Delegate and make sure that the second recommendation is set forth clearly as a policy matter within the Executive Security Unit. 

The Governor made clear in his letter to the Acting Inspector General that all steps regarding the approval, bidding and construction of the security improvements made at his property were done openly and legally. Moreover, he reconfirmed his commitment to pay to the government the value of whatever cannot be removed at the end of his service as Governor when he is no longer entitled by law to security provided at public expense.

Lastly, the Governor noted with regret that the public’s perception of the IG's Report has led to questioning of the integrity of the IG's Office which the Chief Executive described as "very unfortunate, as the value of the work of the Inspector General’s Office heretofore has been of considerable help in aiding local efforts to further open and honest government. And that the local commentary has focused on the fact that the Senator who filed the complaint with your office is both the most strident of partisans as well as linked to the head of your local office has further undermined the solid respect that has previously been accorded your office."

The Governor's response was delivered to the local office of the Inspector General earlier today.

On Monday, Senator Usie Richards issued as a press release, a letter to Governor deJongh claiming that the governor has failed to comply with the requirements of Act 7064 by not forwarding certain financial information to the Legislature. Richards’ letter was copied to all senators and forwarded to the press and since then, the senator has taken to the airwaves to further broadcast his mistaken allegations.

Governor deJongh has said repeatedly to each and every member of the Senate that when they have a concern or a problem, they should simply pick up the phone and call him. He has made himself available to all, and continues to do so. That is what working together is all about.

The governor regrets Senator Richards did not inquire before leaping to release his press release. I would note that if we are to conduct the people’s business by press release and political grandstanding, one thing is for sure---that every time you make a mistake, everyone will know.

The information Senator Richards was describing was sent to the Senate President in a timely fashion and we have confirmed with his office that it was distributed to all lawmakers.

Read the Governor's letter to Senator Richards

Ed. Note: Cross-posted from the First Lady's Blog

Earlier this week, Governor and First Lady deJongh were pleased to host student award ceremonies for the Healthy VI school video contest in both districts this week. The ceremonies highlighted the final results of a community-wide, online vote at the Ourstage.com web site for best videos on a healthy living theme. Over 35,000 votes were cast territory-wide to determine the first and second place winners for all V.I. public, private, and parochial schools. Ceremonies took place at Government House on St. Thomas and St. Croix on Tuesday, and Wednesday respectively.

Speaking at the ceremony on St. Thomas, the First Lady said:

“The Governor and I are incredibly proud of all the students who participated in the Healthy VI contest and congratulate the first and second place winners for placing so highly in the competition. One of the goals of the contest was to share the students’ perspective on healthy living with the broader community, whether they chose to focus on stopping violence, eating healthy, or staying away from drugs and alcohol. We applaud their initiative, and look forward to providing additional opportunities that highlight the skills and talents of Virgin Islands youth while ensuring a direct, educational benefit."

First place teams were awarded $750 to each student team member and $1,250 to the school. Second place teams were awarded $375 to each student team member and $625 to the school. Four schools were honored in total.

First Lady Cecile deJongh presents a check to students and teachers from Bertha C. Boschulte High School as part of award ceremonies for the Healthy VI school video contest on February 9, 2009 at Government House, St. Thomas.

First Lady Cecile deJongh presents a check to students and teachers from St. Croix Central High School as part of award ceremonies for the Healthy VI school video contest on February 10, 2009 at Government House, St.Croix.

The Governor and First Lady applaud the efforts of the following students:

For St. Croix Central High School (First Place, Public Schools): Ikedo Forbes, Kai Moolenaar, Kevin Moolenaar, Pedro Montes, and Shaquille Thomas. Special thanks are also extended to Principal Chermaine Hobson-Johnson. 

For Bertha C. Boschulte High School (Second Place, Public Schools): Aadillah George, Jamarie Ayala, Krystina Joseph, Keyan Francis, and Ro’Niqua Henley. Special thanks are extended to Principal Carver Farrow. 

For St. Joseph’s Catholic High School (First Place, Private/Parochial Schools): Enrique Arroyo and Verna Corbin. Special thanks are extended to Principal Debra Skalkos.

For Kingshill High School (Second Place, Private/Parochial Schools): Abigail Vidale and Dale Donowa. Special thanks are extended to Principal Janie Koopmans. 

The First Lady thanked the sponsors who generously donated funds towards the cash award prizes for the students and schools: First Bank, Cartier, and Hublot and noted the importance of educating children about healthy living, especially against chronic disease, including diabetes, high blood pressure, obesity, and other serious, life-threatening conditions.

She added:

“We are learning that children as young as 10 years of age are developing these crippling chronic diseases, often times as a result of poor diet, inadequate exercise, and unhealthy lifestyles. It’s important that we create opportunities to help children and families make better food choices, as well as encourage exercising, and balancing a healthier lifestyle overall.”

Referencing her personal motivation to start the Healthy VI initiative in the Virgin Islands, the First Lady also spoke of the critical and urgent need to act now in order to provide a benchmark of health and wellness for the next generation. 

“We are experiencing a healthcare crisis in the Virgin Islands and nationwide, particularly with obesity, and healthy living must start to be more of a priority for all of us. It is especially important that we educate children about good health so that they may lead long and fulfilling lives and so that they pass along these lessons for future generations.”

In an effort to enhance the territory’s preparedness and response capabilities for threats beyond natural hazards, Governor deJongh, Lt. Governor Francis, members of the Cabinet and key federal partners met yesterday for a top-level seminar to discuss homeland security issues and strategies to meet these challenges in a post 9-11 world. 

At the invitation of the Governor, a team of nationally-recognized homeland security experts from the Naval Postgraduate School and the U.S. Department of Homeland Security’s Center for Homeland Defense and Security met with the territory’s executive leadership and federal partners for the intensive day-long session.

The seminar ― conducted by the Center’s subject matter experts who comprise a Mobile Education Team (MET) ― has been formulated to help strengthen the U.S. capability to prevent, deter, and respond to domestic terrorist attacks, and to build the intergovernmental, interagency, and civil-military cooperation that homeland security requires.

Lt. Governor Gregory R. Francis, VITEMA Director Mark A. Walters and Governor John P. deJongh, Jr. participate in the Executive Branch Homeland Security Training seminar on February 9, 2010.

“Today we demonstrated that we know some areas very well, but there are some areas where there are maybe unknowns,” Gov. deJongh told the panel. “Overall today’s session served us well. When it is all said and done, 120,000 people will look to us for leadership and the private sector will come to us for guidance.”

Federal partners attending the seminar included Lynn Canton, newly-appointed Federal Emergency Management Agency (FEMA) Administrator for Region II, and senior regional representatives of the U.S. Coast Guard, FBI, U.S. Customs and Border Patrol and Department of Defense. 

Administrator Canton called the seminar a significant step for the territory. The Executive Education Seminar is a direct result of recent discussions Gov. deJongh held with VITEMA Director Mark Walters and key Federal Emergency Management Agency ― Region II officials at Government House on St. Thomas. 

Listen to Comments by VITEMA Director Walters .mp3 (2MB)

Read the complete press release

Yesterday, Public Works Commissioner Darryl Smalls announced that more than a half-dozen capital improvement projects totaling nearly $19 million are on schedule for the island of St. John. 

In announcing the projects, Smalls said:

“There is a lot of work taking place on St. John by several agencies and a number of these projects are ready to be launched. Several of these projects have been dormant for many years and my goal is to ensure that each project moves forward in an efficient manner."

“The deJongh-Francis Administration has undertaken more than $18 million in capital projects on St. John and I intend to update the community, especially the residents of St. John, on these various projects that will be taking shape in the next few months."

The projects include:

• St. John Market and Parking Facility - $2,200,000
• Revitalization of Frank Powell Park - $300,000
• Bordeaux Mountain / Bethany/ John Head’s Road - $2,200,000
• Route 104 Reconstruction - $3,500,000
• Bus Shelters - $150,000
• Cruz Bay Round About - $6,900,000
• Ferryboats - $3,000,000
• St. John School - $ 200,000
• St. John Recreation Center - $ 250,000

Following yesterday's hearing of the 28th Legislature's Committee of Public Safety, Homeland Security and Justice regarding legislation that would grant federal agents peace officer status in the territory, Governor deJongh said he was extremely disappointed to observe the lack of action and the complacent tone displayed by some committee members.

The governor was most disappointed by the committee's lukewarm reception to the proposed legislation which is crucial towards ensuring the valuable partnership with federal authorities in combating violent crime in the Territory. 

The proposed bill, submitted to the Legislature by the Administration in September, would grant federal agents the same legal protections as police officers when enforcing Virgin Islands law and codified the conditions under which those agents could use force.

Passage of the bill is a necessary condition for the return to the territory of the Bureau of Alcohol, Tobacco, Firearms and Explosives, while also ensuring that other federal law enforcement agencies remain in the Virgin Islands. 

“The lack of action and the posturing of some of the committee members, is in fact, denying Virgin Islanders their government's best efforts at protecting them from the scourge of gun crime by utilizing the considerable skills and resources of the ATF, and it is outrageous."

“The Committee's less than expeditious approval in moving this bill forward is yet another irresponsible act that puts political interests above the welfare and safety of the people of the Virgin Islands. At this moment in the territory’s history when more than 98% of last year’s murders were committed by illegal guns, our community is crying out for help. I cannot understand why any Senator would be so reluctant to allow this government to be equipped with the tools needed to tackle this scourge."

DeJongh also noted that this past week, Puerto Rico activated its National Guard to temporarily assist local police, citing the need to halt the homicide rate. “The Puerto Rico governor's decision to activate the National Guard is an example of how other jurisdictions are taking all necessary actions to protect their people. The Virgin Islands owes its citizens no less."

This past Wednesday, Governor deJongh addressed the St. Croix Chamber of Commerce at its Annual Membership meeting Wednesday at The Palms at Pelican Cove on St. Croix. The meeting was an opportunity for the Chief Executive to provide an overview of the territory’s economic and financial position and highlight the continued need for fiscal restraint in light of the ongoing recession and territorial budget deficit of $280 million. Indicating that the territory continues to “move forward,” the Governor offered an overview of territorial initiatives and Administration accomplishments that have helped stave off further recessionary market pressures.

With 5.7% national growth achieved during the last fiscal quarter for 2009, the highest rate of growth in years, the Governor spoke of the need to continue to be flexible while pushing forward with initiatives that will spur consumer confidence and spending. “We will not go back to where we were, thanks to our ability to quickly adapt to the changing financial environment. We must continue to embrace new opportunities, especially in the tourism and economic development arenas, including attracting new and sustaining existing small businesses. There is light at the end of the tunnel, but we are not there yet.” He also noted that the Government’s hiring freeze contributed to a net savings of $30 million thus far. 

The Governor complimented St. Croix Chamber of Commerce members for their “tremendous hard work,” and pointed to the collective spirit of flexibility during the global economic downturn. St. Croix Chamber of Commerce President Omer ErSelcuk provided a State of the Chamber report and offered words of determination, urging members to faithfully persist in anticipation of better days.

Topping the Governor's agenda for 2010 and beyond, as noted at the meeting Wednesday were: capital project development efforts, including baseball stadiums on St. Thomas and St. Croix; continued airlift negotiations for increased visitor capacity in both districts; the Research and Technology Park; additional career and technical programs as an additional avenue for Virgin Islanders seeking employment; energy efficiency/ESCOs (Energy Service Companies) and rebate programs; law enforcement advancements; efforts to overhaul the MAP program and implement a cost saving pharmaceutical benefits initiative; electronic permitting; lower bonding requirements for contractors; credit recovery programs; additional afterschool programs; the forward progress of Parent University in both districts; the Leadership in Action program, an initiative of the Children and Families Council; and other programs designed to increase the standard and quality of life for all Virgin Islands residents. “These are just some of the many items that we are working on as one government, giving you an idea of my Administration’s path for 2010 and as we approach 2011.”

Emphasizing the Administration’s continued commitment to economic growth and forward progress, the Governor also noted that it has become increasingly important that the territory protect its financial position by borrowing not based on the existing tax base, but on future revenues secured from Diageo and Cruzan Rum. “The only way that we will get past this fiscal year is by accessing the credit markets and by borrowing. It is the only way that we will survive.” In recent days President Barack Obama has also advised the nation of the need to continue to borrow funds to help spur economic activity and consumer spending in order to create real economic growth wherever possible.

Speaking about ARRA-funded projects and other federal grant awards, Governor de Jongh offered, “While the insular areas are slower to receive federal funding dollars, the territory expects to receive $56 million in State Fiscal Stabilization Funds, which will be utilized primarily for the Department of Education, UVI and budget stabilization. These monies will be tremendously helpful once received in the Virgin Islands.”

The St. Croix Chamber of Commerce Board of Directors, Executive Director and membership are committed to building and nurturing a more dynamic, pro-business environment on St. Croix.

A recently released report by the independent Congressional Research Service (CRS) validates the long-term economic development agreements signed by Governor deJongh. The study concludes that anti-USVI legislation introduced by Puerto Rico Resident Commissioner Pedro Pierluisi is counter to the original intent of Congress’s rum cover-over program, which was created to generate economic growth in the territories. 

The Governor commended CRS for correcting misinformation about the two rum industry public-private partnerships that strengthen the USVI’s economy and secure new government revenue streams. The report, entitled The Rum Excise Tax Cover-Over: Legislative History and Current Issues, confirms that there are no restrictions on the use of revenue under the rum cover-over program and that the program’s legislative history indicates revenue should be used for economic development. The USVI is investing a portion of its revenue in its partner companies for construction of clean, modern facilities (water treatment facilities and distilleries) and marketing to grow sales and thus increase cover-over revenue, using the program as Congress intended. 

Addressing the independent reports findings, Governor deJongh said:

“The rum cover-over is an essential economic development program for the territories. The USVI’s deals with Diageo and Fortune Brands will greatly benefit the USVI and America. I strongly encourage members of Congress from both parties to read this independent report, as it validates our economic development efforts and provides a substantive counter to Puerto Rico’s hyperbole and misinformation machine."

“The CRS report puts to bed the false allegations from Puerto Rico about the USVI’s economic development efforts, including the lie that the USVI is ‘poaching’ rum companies through unfair taxpayer subsidies. It reaffirms that Diageo was already leaving Puerto Rico when the company contacted us, and that Puerto Rico’s proposed legislation – which we know is all part of a retaliation campaign against the USVI – would significantly harm both territories.”

The CRS report says Puerto Rico’s legislation would be detrimental to both territories. In analyzing H.R. 2122, legislation introduced by Puerto Rico Resident Commissioner Pedro Pierluisi, the report concludes that passage of the bill “would result in severe limits on Puerto Rico’s and the USVI’s ability to finance economic development projects with this revenue.” 

The CRS study cites the legislative history of the cover-over statute, validating Congress’s intent that the USVI use its cover-over revenues for “stimulating and increasing business in every possible way.” It also corrects the record on the process by which Diageo, owner of Captain Morgan, chose to locate in the USVI after previously deciding to leave Puerto Rico.

The report concludes that rum cover-over revenue to the territories does not constitute taxpayer dollars, contrary to Puerto Rico’s assertions and extremely damaging to their arguments. Rather, the CRS report notes, under rules that govern the tax and political relationship between the United States and its territories, “[m]ost federal excise taxes do not apply” in the USVI or Puerto Rico. The exception at issue here is the “equalization tax” that is imposed on products manufactured in the USVI and Puerto Rico and shipped to the United States. 

This tax is imposed on the territorial producer. It is triggered when the territorial product, in this case rum, enters commerce in the United States. It is not a sales tax imposed on U.S. consumers. It is not intended to raise revenue for the U.S. Treasury. It is intended only to protect U.S. producers of like products from territorial manufacturers who, because of the USVI and Puerto Rico’s political status, are exempt from federal taxation. 

As the CRS report notes, since the purpose of the equalization tax is not to raise revenue for the United States, Congress has, beginning in 1917, given, or “covered-over,” the revenue back to the territories for use as their respective legislatures see fit. 

The CRS report also notes that historically both the Virgin Islands and Puerto Rico have invested in – or subsidized – their rum industries to strengthen brand identification and to withstand foreign competition. 

As the report points out, “Puerto Rico uses cover-over revenue to finance marketing and promotional activities for [its] rum industries. The exact amounts and extent of these activities is unclear as there is not separate publicly available budget accounting [in Puerto Rico].” In contrast, the USVI’s public-private partnerships, and the contracts that form the foundation of these partnerships, are fully transparent and accessible to all on the USVI government’s Web site.

Even more telling, the CRS report notes that H.R. 2122, Puerto Rico’s anti-USVI legislation “would also seem to preclude the USVI from using [its] general revenue to subsidize [its] rum producers.” 

In response to that finding, the Governor said:

“It is an outrage that a Member of Congress would introduce federal legislation barring the legislature of another jurisdiction from using its own general revenues for any purpose duly considered and enacted by that local body. California does not tell Florida what its legislature can or cannot do with its own money. Virginia does not use Congressional legislation to undermine Michigan’s economic development efforts. So why is Puerto Rico pressuring Congress to do so?”

“The real reason for the Pierluisi bill, as suggested by the CRS study, appears to be that Puerto Rico would be better off if Diageo had gone to a foreign country in the Caribbean or Latin America rather than the USVI, Puerto Rico is willing to lose a global company’s jobs and economic impact to foreign countries, purely for its own self-interest, rather than keep them here in the United States. This runs counter to the spirit of the cover-over program, let alone our country’s needs in a time of economic difficulty.”

Congresswoman Donna Christensen also commented on the report, saying:

“This report comes straight from Congress’s nonpartisan, independent research center, a source that members of Congress and their staff rely upon for credible, unbiased information. It reiterates the points that Governor deJongh and I have made for months: the USVI is using the rum cover-over program properly, and H.R. 2122 runs counter to the Congress’ intent and would damage both the USVI and Puerto Rico.”

This afternoon, Governor deJongh congratulated two Virgin Islands sprinters for their extraordinary performances over the weekend. Laverne Jones-Ferrette and Tabarie Henry, teammates from the 2008 Beijing Olympics, set world-leading times within hours of each other Sunday at track meets in Germany and Texas.

Jones, a two-time U.S. Virgin Islands Olympian, ran the world's fastest 60 meters dash of the past two years in the heats of the BW Bank Meet in Karlsruhe, Germany, setting a V.I. national record of 7.09 seconds with the fifth fastest short dash on record. Jones went on to win the event before 4,500 fans with a time of 7.11 seconds in the finals.

A few hours later, Henry ran the fastest indoor 400 meters in the world this year. The Texas A & M University sophomore's time of 45.81 seconds earned him first place at the 2010 Texas A & M Challenge. Henry also ran the third leg for the winning Texas A & M 4 x 400 meter relay team, which posted a time of 3:05.

Last week, Henry set this year's 7th fastest 200 meters time with a 21.13 second performance. He is the Virgin Islands national record holder at 200 and 400 meters.

Speaking about the athlete's accomplishments, the Governor said:

“The two sprinters are examples of what our territory’s youngsters can achieve when they are dedicated to working hard toward their goals. Through their accomplishments on the track field, Jones-Ferrette and Henry serve as role models for not only the next generation of V.I. Olympians, but to our young academic and artistic stars as well,” deJongh said, adding, “We must continue to ensure that the next Laverne Jones-Ferrette has all the resources available to her now to be successful when her time comes to excel on the world stage.”

“Cecile and I join the families, friends and teammates of Laverne Jones-Ferrette and Tabarie Henry in celebrating their world-beating accomplishments, and we wish the two remarkable athletes continued success on the field and with all their other endeavors."

The governor pointed out that through our work to revitalize our parks and recreational facilities, and by investing in our schools’ athletic programs, more young Virgin Islanders will have the opportunity to set the next round of world records.

Yesterday, Governor deJongh met with the newly sworn-in Region II Administrator from the U.S. Environmental Protection Agency (EPA) Judith A. Enck and other EPA officials at Government House, St. Thomas. 

The high-level meeting was the Administrator’s first visit to the territory and focused on the Administration’s proactive posture relative to environmental stewardship in the Territory and key, environmental priorities for the DeJongh/Francis Administration, including ongoing green technology efforts. 

Following the meeting, the Governor said:

“Over the past three years, my Administration has continued to focus on upgrading the territory’s environmental management systems not only to ensure compliance, but in order to provide leadership in the deployment of cutting edge environmental technologies. Our solar water heater programs in both districts, as well as the energy star appliance efficiency rebate program, and the Energy Service Companies (ESCOs) in cooperation with the Energy Alliance Program are initiatives focused on job creation and energy consumption reduction. Through these and other efforts, we are ensuring that our investments accommodate the territory’s infrastructure and environmental needs."

The Governor commended the new administrator on her recent appointment to the top position within EPA, Region II on November 5, 2009, and noted the significance of the meeting, given the various permits in process for several economic development efforts in the territory, including the Diageo Rum Distillery, the Cruzan Rum waste treatment plant, and the Alpine Energy Group facilities. Other topics included the 2010 grant opportunities available to the Virgin Islands, including potential funding for the retrofitting of diesel vehicles and ferries; the status of ARRA-funded projects previously awarded; and the continued cooperation with EPA on sustainable solid waste management and recycling efforts, inclusive of technical assistance offered by EPA. 

Referring to the continued partnership of EPA, the Chief Executive noted, 

“Looking ahead it is important that we are able to continue to provide economic development and job creation strategies while also taking special care to address and heed environmental compliance standards. In today’s challenging world economy, it is critical that the Virgin Islands Government provide opportunities and incentives wherever possible for the benefit of all residents of the Territory, and the EPA is an important partner in that effort."

While in the territory, EPA officials will also meet with Water and Power Authority Executive Director Hugo Hodge, Jr., as well as with Waste Management Authority Executive Director May Adams Cornwall, and various environmental groups. 

DeJongh and Enck were joined at the meeting by EPA Caribbean Environmental Protection Division Director for Region II, Carl-Axel P. Soderberg; EPA Public Affairs Division Director for Region II, Bonnie Bellow; EPA Virgin Islands Coordinator, Virgin Islands Office, Jim C. Casey; Department of Planning and Natural Resources Commissioner Robert Mathes; and Government House Executive Staff.

EPA’s Region II has jurisdiction in New Jersey, New York, Puerto Rico, the Virgin Islands, and seven federally recognized Indian Nations.

EPA officials are visiting the Territory for two days and will travel to Puerto Rico Tuesday for additional, scheduled meetings.