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May 7, 2008
DEJONGH IMPOSES EXECUTIVE BRANCH HIRING FREEZE; PROACTIVE MEASURE EXEMPTS KEY POSITIONS WITHIN GOVERNMENT Acting on recommendations forwarded to him by the Director of Personnel, and the Director of the Office of Management and Budget, Governor John P. deJongh, Jr. has initiated a moratorium on Executive Branch hiring as "a proactive measure to ensure that necessary funds can be maintained for government services through the end of the current fiscal year." The hiring freeze, which took effect this week, applies to positions in both the classified and exempt service. In a letter to the heads of departments and agencies of the Executive Branch, deJongh said, no Executive Branch position would be filled unless it is deemed exempted from the moratorium or specifically recommended for exemption by the Director of Personnel. DeJongh exempted those positions that were deemed to be of significant relevance and importance to the overall well-being and public safety of the territory. Those positions include: Social Workers, Medical Social Workers, Officers, Sergeants, Lieutenants and Captains in the Police Department, Registered Nurses, Teachers certified as "highly qualified" under applicable statutory definitions, all positions within the Bureau of Corrections, and all positions funded by Federal funds. During the moratorium, only salary increases related to negotiated salary adjustments will be processed. Current revenue projections reflect both economic conditions and the actions taken by the 27th Legislature since it passed the current year's budget. The Governor cited the fact that when this year’s budget was submitted to the Legislature, it was balanced by revenue projections that included $123 million in Real Property Tax collections. In summarizing the current conditions deJongh explained, "Our original tax bill filed with the Legislature was significantly modified by the Senate and when finally implemented, the Senate version of the tax bill results in substantially lower collections creating a shortfall of nearly $50 million." As a result of the anticipated reduced revenues from Real Property Taxes, deJongh has led the Executive Branch in a series of cost containment measures to mitigate the Government’s financial situation including modifying the allotment process from quarterly to monthly release of funds; reducing and withholding allotments that are non-critical; imposing a two percent reduction in current year allotments and implementing a hiring freeze. In letters to the Senate President, Presiding Judge of the V.I. Superior Court and Chief Justice of the Virgin Islands Supreme Court, deJongh sought compliance with the allotment reduction in the budgets of the two other branches of government as had been imposed in the Executive Branch. "Your voluntary compliance with a two-percent (2%) reduction to the Judicial and Legislative allotment, in the spirit of cooperation, to help manage the Territory’s FY 2008 fiscal situation will be greatly appreciated." DeJongh said that he would continue to "take all necessary actions required to keep the government operating through this time of financial distress." |
