Governor Signs Bill 28-0227 into Law; Act No. 7174 Will Support Sustainability for V.I. Government Through Economic Recovery Period

Saying that passage of the legislation will aid immeasurably in the territory’s economic recovery, Governor John P. de Jongh, Jr. on Monday afternoon signed Bill 28-0227 into law. 

“The enactment of Bill 28-0227 represents one of the most significant pieces of legislation to affect the United States Virgin Islands as several measures in the bill serve the collective purpose of supporting sustainability for the Government of the Virgin Islands as we work our way through the worst economic collapse to have confronted the U.S. economy, and by extension our economy, since the Great Depression,” de Jongh wrote in correspondence to Senate President Louis Patrick Hill. 

de Jongh described the bill as a step in the right direction as it allows the administration’s continuing reforms and initiatives to set the foundation for economic recovery and growth. “Therefore, I approved the measures in Sections 1 through 5 of the bill to increase the maximum authorized principle amount of borrowing for working capital; remove the requirement that the government borrow from government funds and accounts before borrowing from banks and other institutions; extend the repayment period and mandate an annual set aside of 4% of the gross matching fund revenue from deposits into the government accounts towards reducing the principle amount of outstanding indebtedness.”

He said that as part of his administration’s economic recovery and stabilization plan for the territory, the funds will be used to help narrow the $170 million deficit for Fiscal Year 2010 and cover a portion of the projected shortfall for Fiscal Year 2011. The government will issue bonds backed by rum excise taxes. “This will cause the future economic burden to be placed, not on our taxpayers, but upon our economic partnerships with Diageo and Fortune Brands, Inc./Cruzan Rum.” 

de Jongh noted that in addition to utilizing monies to address the deficits, his administration will continue reform and cost-control measures with regard to the policies of government operations, and budget cuts where necessary and feasible. “Most importantly, as detailed by the administration’s financial team, the implementation of these measures will have a positive effect of maintaining gainful employment for thousands of government workers, continued service to our residents in such areas as public safety, senior centers, health and education, and the support to our local stores and businesses who rely on the approximately $8.1 million, as recently estimated by the Virgin Islands Bureau of Economic Research, that is spent each week by government workers. Additionally, I cannot overstate the value in the course of action we have chosen in projecting our stability as private sector investment is being considered and initiated during this period of financial and economic uncertainty,” he said. 

de Jongh also explained his approval of Section 10 of Bill 28-0227 which, in effect, recognizes that the Department of Tourism’s strategy for tourism and marketing plan plays a significant role in the economic recovery of the Virgin Islands and in ensuring the quality of our brand as a tourist destination. “This measure sets aside a portion of the bond proceeds for use by the Department of Tourism for rebranding the Virgin Islands as a year–round tourism destination, providing an excellent return of this investment when there is a significant increase in the number of tourist to the Virgin Islands.”

Also signed into law is Section 9, a measure that reprograms funds to use for addressing budgetary shortfalls within the Department of Justice. 

Section 11, a measure that simply expands the permissible uses for matching funds for capital projects to allow the Department of Public Works to make needed road and culvert repairs in the St. Croix, and St. Thomas, St. John and Water Island districts was also approved.

de Jongh also approved the measures in Sections 6, 7 and 8, which derive funding from the Virgin Islands Educational Initiative Fund to support invaluable programs and supply basic resources for student’s use in the classroom. Specifically, Sections 6 and 8 will provide funding for scholarships in nursing and cardiovascular technology training. “I encourage these scholarships as they increase the accessibility to these professions by providing monetary assistance to students facing financial challenges. As a result, our students will be encouraged to enter the profession of nursing and cardiovascular technology, thus providing a sustained pool of professionals to address the recurring shortage of such professionals in the territory.” 

Further, Section 7 provides the funding source for the Ivanna Eudora Kean High School to purchase textbooks for English, business law, and photo shop classes; tools and supplies for small engine, carpentry, cosmetology and marine supply classes; maintenance of computer hardware and security equipment. “I know that it is universally understood that tools and supplies, and such items as textbooks are essential “tools” for ensuring a proper education for our students, and therefore, the provision of such tools cannot be compromised. My administration will support measures that expand educational opportunities and improve the quality of the learning environment for our children,” de Jongh said. The governor also approved Section 12. 

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RELATED DOWNLOAD: Text of Act. 7174