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August 7, 2007

Governor signs bill 27-0066 into law but exercises line-item veto on several sections

Legislation approving various projects to be funded with a $1.7 million Community Development Block Grant from the U.S. Housing and Urban Development, amending sections of the V.I. Code relating to sexual offender registration records, the Teacher Incentive Scholarship Program, the receipt of unemployment benefits and the providing of several appropriations was signed into law Tuesday by Gov. John P. deJongh, Jr. While deJongh approved certain items in the bill, he was forced to veto other provisions because, as he has indicated in response to previously submitted appropriation bills, the General Fund simply cannot bear additional appropriations in Fiscal Year 2007. "I do not challenge the 27th Legislature's determinations that the proposals set forth in the vetoed sections contain worthy objectives. However, sound fiscal management practices dictate that I veto these items at this time," deJongh wrote in a Tuesday transmittal letter to Senate President Usie R. Richards.

Section 1 of this Bill approves funding for the Fiscal Year 2007 Community Development Block Grant ("CDBG") projects. "I am directing the CDBG office to carefully monitor these projects and to expeditiously respond to the inquiries of the grantees so that we may avoid any need for last-minute re-programming of these funds. I also encourage the grantees to promptly take all steps to move their projects forward to achieve their objectives."

deJongh vetoed Section 2 of this Bill, which would prohibit the disclosure of the records of minors who have been determined to be sexual predators or who have been convicted of certain crimes against women or children. A review of existing Title 14, Chapter 85, and Title 5, Chapter 201, Virgin Islands Code, reveals that the only minors who fall into the categories of sexual predators or convicts of crimes against women or children are those minors that have already been determined by Virgin Islands courts to warrant criminal treatment as adults under Virgin Islands law. "I see no reason to interfere with the established Virgin Islands policy which allows the members of the public to be informed of those persons who have a record of causing harm to women and children." Further, he said, the proposal would only result in differing punishments for persons convicted of similar crimes, and the concomitant confusion that results from such disparate treatment.

Also approved was Section 3 of this Bill as it provides more flexibility for teachers to further their own educations under the scholarship program administered by the Board of Education. "The current versions of these amendments adequately address the concerns I expressed when I vetoed past iterations of this measure," deJongh said.

The governor approved Section 4 of the bill but with great caution. "While I believe that it is appropriate to reduce the impact of the dollar-for-dollar offset currently required between the pension benefits one receives and appropriately determined unemployment compensation, I remain concerned that, as worded, this legislation may be viewed as running afoul of federal laws requiring the setoff as applied to social security benefits." deJongh directed the Department of Labor to carefully create rules and regulations under which this legislation will be implemented, and the Department of Justice to provide the requisite legal advice to assist in this endeavor. "In this fashion, we can comply with federal law while also bringing some relief to our constituents."

deJongh approved Section 5, but line item vetoed the language which places this appropriation in Fiscal Year 2008. "Any appropriations for Fiscal Year 2008 should be introduced as part of the on-going budget process. With my action, consistent with the underlying appropriation contained in Act No. 6890, this re-programming of funds is applicable to Fiscal Year 2007." Because this measure only re-programs an existing appropriation, deJongh said, its effect is budget-neutral.

Section 6 was vetoed because, as deJongh has indicated in response to previously submitted appropriations bills, the General Fund simply cannot bear this additional appropriation in Fiscal Year 2007. The Government is experiencing a cash shortfall that already has resulted in the imposition of across-the-board 2% expenditure reductions applicable to all executive branch departments and agencies. Fiscal prudence requires that this measure be vetoed.

Section 7 of this measure is vetoed. The section would have authorized funding in Act No. 6932 to remain available until expended.

Section 8 of the bill which amends the CDBG re-programming contained within Act No. 6931 was approved. "I reiterate that this re-programming of CDBG funding was implemented because certain CDBG monies remained unspent after several years. Again, better cooperation between the CDBG office and the grantees should avoid the need for such steps in the future."

Section 9(a) of Bill No. 27-0066 is vetoed because the proposed amendment is not possible. C/CNTR DM6035-HPR does not reference the St. Croix Cricket Association at all. Therefore, that language cannot be deleted and replaced. Section 9(b) is vetoed.

Section 10 of this Bill is vetoed as there are no available monies in the Transportation Trust Fund to support the measure. In fact, this Fund is over-appropriated. "My Administration is determined to address the long-outstanding issue of monies owed to retirees based on past legislation. We will address this matter by first assessing exactly what amounts are owed to each eligible retiree, as this crucial step, which entails the review of the records of each potentially eligible retiree, has not been accomplished." deJongh said to take his first step he is approving the appropriation contained in Section 16 of Bill No. 27-0066. Once the amounts owed and the proper recipients are established, we will then expeditiously and responsibly compensate the retirees who are owed these debts, he said.

Section 11 of this Bill is approved.

Sections 12 and 13 of the bill were vetoed. "Based on our review of the myriad of legislation appropriating funds to address retiree lump-sum and retroactive payments, it appears that appropriations of $4.5 million already are in place to satisfy any such claims. Therefore, while the intent of these pieces of legislation is well-intended, an additional appropriation for this purpose appears unnecessary. As noted in addressing my veto of Section 10 of this Bill, I am approving the appropriation in Section 16 so that the Division of Personnel can determine what amounts are owed to which persons."

Section 14 of Bill 27-0066 is vetoed for two reasons. First, it appears from prior tax amnesties that were implemented by the Government, that such amnesties do not meet their intended goal of increasing the receipts of the Government coffers. deJongh said he does not believe it is prudent to pursue tactics that do not meet their objectives. Second, this legislation cannot be implemented as it is the Director of the Bureau of Internal Revenue, not the Commissioner of Finance, who has authority over gross receipts taxes. Therefore, legally, this legislation cannot be implemented.

Sections 15, 17, 18, 19, 20, 21, and 22 of Bill 27-0066 are vetoed. The seven sections of the bill would have provided funding during the FY 2008 for various projects and organizations.

As noted earlier, Section 16 of this bill was approved. "Because the process to be undertaken by the Division of Personnel to identify the proper retiree-recipients and amounts owed them will require sufficient time to be completed properly, I am submitting a proposal to make these monies available until expended. Further, in order to avoid negatively affecting the Fiscal Year 2007 budget, I also am submitting a proposal which would re-program an existing appropriation in the amount of $400,000."

Sections 22, 23 and 24 are vetoed. These three sections would have provided funding during the current fiscal year to various organizations. deJongh has explained on numerous occasions that a projected shortfall in the FY 2007 makes it impossible to further appropriate monies from the General Fund.

Section 25 of the bill was approved. As a general principle, when super-majority votes are required of deliberative bodies, a two-thirds (66.6%) or three-fourths (75%) vote is required. Under current legislation, the Constitutional Convention is required to approve its proposed Constitution with a 90% favorable vote. "This requirement is unduly burdensome on this constitutional process. This measure establishes the approval required at the more reasonable two-thirds (66.6%) level," deJongh said.

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