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deJongh takes action on FY 2008 Budget bills

Gov. John P. deJongh Jr. Wednesday evening took action on more than 30 bills passed by the Senate including the Fiscal Year 2008 budget for the V.I. Government. The majority of the budget bills were signed into law as approved by the 27th Legislature but on six measures, deJongh exercised the line-item veto power of his office.

deJongh line-item vetoed a portion of Bill 27-0096 which commits the sum of $1,000,000 to the Magistrate Court as: 1) there is no Magistrate Court, but a Magistrate Division within the Superior Court; and 2) these monies were previously appropriated to the Superior Court in Act No. 6919. "There was no request to fund the Magistrate Division with $2,000,000. Instead, the $1,000,000 appropriated in Bill No. 27-0096 was intended to fund the Crisis Intervention Fund. I will submit legislation to reflect this intention," deJongh wrote in his transmittal to Senate President Usie R. Richards. DeJongh also line-item vetoed two sections of Bill 27-0171 as those sections would enact far-reaching changes to not only the V.I. judicial system but also the relationship between the Supreme Court and the Superior Court. The governor explained that A great deal of effort was placed into developing the policies which are reflected in the Supreme Court legislation, Title 4, chapter 2, Virgin Islands Code, as it exists, and this was accomplished only three years ago. "In view of the changes contemplated by such critical amendments, these measures must be fleshed out in the public arena through the committee process so that all interested parties have an opportunity to provide input. The judicial system is so critical to the basic fabric and functioning of our community, both in civil and criminal matters, that I urge the Senate to undertake its oversight role and deliberate with the Chief Justice and the Presiding Judge in a public setting the basis of their respective proposals." 

deJongh also approved Bill 27-0098 because of the importance of capital improvements to both the Legislative and Executive Branches of government in ensuring that they can meet their respective mandates to the people of the Virgin Islands. "These projects are but a small portion part of the vast capital improvements needs that must be addressed in the near term and for which my Administration is in the process of developing an overall capital and financial plan to address. However, we will carefully monitor the Internal Revenue Fund to ensure that expenditures do not exceed the revenues of the Fund."

Citing the fact that monies appropriated in two sections of Bill 27-0091 would cause the General Fund budget to become unbalanced, deJongh line item-vetoed sections 1 and 2 of the legislation. The governor said he recognized the urgency for certain road projects to be initiated based on a proper assessment of costs and resources. DeJongh pointed out however, that "there currently exist approximately $40.0 million of appropriations for that the Department of Public Works has not yet completed or commenced. In the near term, my Administration will look for ways to fund those projects through diligent management of General Fund monies and special funds, such as the St. Croix Capital Improvement Fund. 

deJongh also approved most of the Executive Budget Bill, 27-0077. The governor did item veto several sections. He explained his actions in his transmittal letter to the Senate President. "The appropriation of $1,030,023 in Section 2 to the ferry companies was another cause for an imbalance in the budget. My Administration will work with the affected companies throughout the year and continue to support them in the provision of timely, consistent and affordable ferry services to Virgin Islands residents and visitors to the Territory. My commitment is based on the expectation that these companies will provide the management support and financial data required for us to ensure the appropriate use of public funds in support of their business activities. In Section 4, I have line-item vetoed the "s" from "sections" as well as "and 3". Only Section 2 contains grants of funds to non-governmental agencies. In Section 6, I have line-item vetoed the mandate that the Constitutional Convention convene on or before October 10, 2007. This date is unworkable as a practical matter, as that is today. Further, only recently has the issue of the pending litigation surrounding the election of delegate’s been finally concluded. Therefore, it is appropriate that the Convention Delegates select their own dates for meeting in a manner that allows them to meet the deadline imposed by statute for completing a constitution. In Section 7, I line-item-vetoed part (a) as there is no Section 1, subsection (h)(5) in Act No. 6688."

There were other line-item vetoes of sections of Bill 27-0077. DeJongh cited two sections of the legislation would alter the mirror tax code system under which the Virgin Islands operates in a manner which could lead to confusion among taxpayers and federal and local agencies. "Uncertainty in our income tax system already has caused the Territory to lose several businesses, and any further confusion should be avoided. I remain committed to the credibility of our Economic Development Commission and all tax legislation that will serve to attract companies to further investment in the Virgin Islands. However, the submission of such legislation must always be after a thorough review of its implications by Administration officials." 

deJongh also vetoed Section 13 of the bill as the affected language in Title 33, Section 42 Virgin Islands Code is part of the Virgin Islands excise tax legislation and not the personal use tax statute. And he line-item vetoed items 1 and 4 in Section 14. "The monies for the Estate St. Georges Homes Settlement have already been released. I take this opportunity to, again, thank the residents of Estate St. Georges for their patience and hope that this financial award will ensure a better quality of life. Further, the monies for the engineering plans for Virgin Islands schools already have been encumbered."

deJongh approved the remaining budget bills for Fiscal Year 2008: 27-0078, 0079, 0080, 0081, 0082, 0083, 0084, 0085, 0086, 0087, 0088, 0089, 0090, 0092, 0093, 0094, 0095, 0097, 0102, 0103, 0106, 0108, 0113, 0120. 

• 27-0078: Appropriation from the Anti-Litter and Beautification Fund to the Waste Management Authority
• 27-0079: Appropriation to the Motor Vehicle Bureau
• 27-0080: Appropriation from the Business / Commercial Property Revenue Fund to the General Fund
• 27-0081: Appropriation from the Caribbean Basin Initiative Fund to the General Fund
• 27-0082: Appropriation from the Government Health Insurance Fund to cover operating expenses in the Departments of Labor and Finance
• 27-0083: Appropriation from the Health Revolving Fund to the Department of Health
• 27-0084: Appropriation from the Indirect Cost Fund to the Departments of Property & Procurement; Finance, Office of Management and Budget and Division of Personnel
• 27-0085: Appropriation from the Internal Revenue Matching Fund to the General Fund
• 27-0086: Appropriation from General Fund for operating expenses of Public Employees Relations Board and Labor Management Committee
• 27-0087: Appropriation for operations of the Public Services Commission from the PSC Revolving Fund
• 27-0088: Appropriation to Waste Management Authority operating budget from Sewer Wastewater Fund
• 27-0089: Appropriation to Public Works and Waste Management Authority from St. John Capital Fund
• 27-0090: Appropriations to the territorial festivals from Tourism Revolving Fund
• 27-0092: University of the Virgin Islands FY 2008 budget
• 27-0093: WTJX TV Channel 12’s FY 2008 budget
• 27-0094: Appropriation to cover operating expenses of the Taxicab Commission
• 27-0095: Appropriation from General Fund to Waste Management Authority operating budget
• 27-0097: Contribution to the St. Croix Capital Fund from the Internal Revenue Matching Fund
• 27-0102: To increase the cap for the Special Fund under the Commissioner of Insurance
• 27-0103: To increase the ceiling for the Public Services Commission
• 27-0106: Budget Stabilization Fund
• 27-0108: Operating Budget East End Medical Center
• 27-0113: Health Insurance contract for Government Employees and Retirees
• 27-0120: V.I. Legislature’s FY 2008 Operating Budget

In his transmittal to the Senate President, deJongh also pointed out that several items which were submitted to the Legislature as part of the budget have not been acted on. These, he said are important to the operation of the executive branch and he urged the Senate to favorably consider those pieces of legislation which include:

Amending the Virgin Island Code to increase the employer’s contribution to the Government Employees Retirement System from 14.5% to 17.5%;

Legislation to transfer the housing component from the Department of Housing, Parks and Recreation to the Virgin Islands Housing Finance Authority, and to transfer the Community Development Block Grant program to the Virgin Islands Housing Finance Authority, and to increase the appropriation to the VIHFA to sustain the operations of both divisions.

The creation and funding of the Department of Sports, Parks & Recreation and the transfer of the Virgin Islands Energy Office to the Office of the Governor.

deJongh also urged the Legislature to identify funding to replace the sums taken from his proposed appropriation to cover payments to the third-party fiduciary of the Department of Education. "The financial role of the third-party fiduciary, an entity mandated by the U.S. Department of Education in order to receive federal grant monies, to monitor and disburse grant funding, requires appropriate funding of their engagement."

In conclusion the governor said he looked forward "to working with all Senators in executing the many action items required in this budget and achieving the maximum efficiency of our Government for the people of the Virgin Islands."

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