Stimulus Funds Flow to Territory's Treasury
Posted by Jean Greaux on March 9, 2009 at 3:42 PM AST

Governor de Jongh continues to lead the way on behalf of Virgin Islanders when it comes to the American Recovery and Reinvestment Act (ARRA). Earlier today, the Governor took action on various fronts to advance the Territory’s case for funding and participation in the nation-wide stimulus program. 

With funding already flowing into the Territory’s treasury, Governor de Jongh wrote to President Obama on behalf of the U.S. offshore Territories; sought additional flexibility with education funding from Education Secretary Arne Duncan: signed off on an assurance letter to the Secretary of Energy and executed certification letters for transportation related funding.

The Governor’s letter to President Obama seeks additional flexibility for all territories in the State Stabilization Fund, which is intended to provide fiscal relief in order to prevent budget cuts to education and other essential public services as a result of declining revenues. “On behalf of our fellow citizens in these remote outlying areas, we respectfully request that you direct the Secretary of the Interior to undertake the lead role in the administration of the State Stabilization Fund for the Territories, as authorized and permitted in the Act, in order to ensure the flexibility for the Territories that Congress intended.” de Jongh further pointed out that a precedent exists for the delegation of interagency authority with respect to the administration of federal programs in the U.S. Territories, and further said, “In the interest of maximizing the long-term benefit of the Stabilization Fund program consistent with its statutory purpose, we urge you to consider its application in this instance.

The Governor’s correspondence, which followed de Jongh’s recent meetings in Washington where he spearheaded the efforts on behalf of the Territorial Governors, was also signed by Governors Benigno Fitial of the CNMI, Togiola T.A. Tulafono of American Samoa and Felix Camacho, Governor of Guam and was also sent to Interior Secretary Kenneth Salazar and Education Secretary Arne Duncan.

In a separate letter to Secretary Duncan, de Jongh pointed out that granting the Department of Interior the authority to administer State Stabilization Funds to the Territories would not only recognize the greater historical experience of the Department of the Interior with island Territories and its broader understanding of their unique needs and problems, it would also avoid difficult administrative problems interposed by the current third party fiduciary relationship with the U.S. Department of Education which could, however inadvertently, thwart the intent of the Congress to ensure fiscal relief.

The Department of Health has become the first government agency to receive funding by way of the federal stimulus bill. A $4 million dollar credit was applied to the Department of Health’s budget for the Territory’s Medicaid program. Acting Health Commissioner Julia Sheen and Floyd Pittman, Director of the Medicaid Program (MAP) welcomed the funding which will be a boon for low income residents of the Territory. “Once residents are certified to receive assistance, MAP will use the funding to pay for hospital, doctor or dental bills that they may have,” Pittman said, adding that 91 persons took advantage of applying for MAP services during the AgFest on St. Croix last month. The Medicaid program is expected to realize $8 million over two years by way of the ARRA.

Governor de Jongh today certified the Federal-Aid Highway Programs and the Federal Transportation Administration projects, which will be funded by the ARRA stimulus legislation. The certification by the Governor was a requirement for the release of funding. The Public Works Department is expected to receive just over $18.6 million in the federal-aid highway projects and $1.2 million for transportation administration initiatives. The federal aid highway program includes funding as follows:

Territory-wide: Roadside safety improvement: guard rails, pavement markings and signs. A total of $495,930.21 is targeted for these improvements along the Melvin Evans Highway; La Reine to Strawberry; Salt River to La Reine; Coakley Bay to Solitude on Croix as well as Bonne Esperance to Fortuna; Frenchman’s Bay to Bovoni, Estate Harmony, Skyline Drive and Crown Mountain on St. Thomas and Grunwald, Susannaberg and Estate Carolina on St. John. 

St. Croix: $ 4.8 million is provided for roadside safety improvement: guard rails, pavement markings and signs on Queen Mary Highway from Hannah’s Rest to Sunshine Mall intersection and from the Peter’s Rest Intersection to Contentment. 

St. John: $4.8 million is targeted for improvements on St. John, specifically, the second phase of work on the Gift Hill Road from the Westin Hotel to Estate Susannaberg.

St. Thomas: $7.6 million is provided for roadway reconstruction, geometric improvements, drainage and roadside safety and operational improvements on the Long Bay Road. $914,069.79 is allocated to fund sidewalk and safety improvement in Red Hook on the roadway which extends from the Kean High School to the ferry terminal.

$1.2 million will become available for mass transit infrastructure improvements, to design, construct and rehabilitate mass transit facilities including: bus stops, bus terminals, bus shelters, signage and access to these facilities. Also the funding will be used for territory-wide standardization of facilities to ensure ADA compliance and to develop secure sheltering for patrons of the mass transit systems.

On Wednesday, the Governor also wrote to Energy Secretary Steven Chu to provide assurances that the territory is committed to a robust improvement in energy efficiency and renewable energy, as well as a balanced comprehensive Territorial energy policy. de Jongh wrote in his letter to the Energy Secretary that the Virgin Islands is “prioritizing our energy investments to take advantage of existing energy efficiency programs and to expand these programs where appropriate.”

As a condition of the Territory receiving its share of federal stimulus funding for energy programs, de Jongh also wrote to DPNR Commissioner Robert Mathes and Chairman of the Senate Economic Development, Energy and Technology Committee Senator Craig Barshinger requesting that they take the necessary action to strengthen our building energy codes, consistent with the requirements spelled out in the ARRA, Territorial law and the relevant provisions of the International Energy Conservation Code.

A similar letter was written by de Jongh to the Chairman of the Public Services Commission Joseph Boschulte requesting that the PSC consider additional actions to promote energy efficiency, consistent with the statutory requirements set forth in the ARRA and its obligations to maintain just and reasonable rates while protecting the public. 

All documents relating to the funding the Virgin Islands is slated to receive via the American Recovery and Reinvestment Act of 2009 (ARRA) can be reviewed on the V.I. Government’s recovery web site at www.Governorde Jongh.com/recovery