Virgin Islands Gov. Kenneth Mapp issued an order aimed at reducing the government's operational costs.
The order on Tuesday came as the government has warned that it risks not having enough money to make payroll as soon as Thursday.
The order freezes non-essential hiring with four exceptions: federally-funded positions, emergency and public safety positions, teaching positions, and court-mandated positions.
The order suspends all wage negotiations and non-essential travel, and limits the use of government vehicles.
Mapp also ordered semi-autonomous government entities that receive General Fund money, like the public hospitals and University of the Virgin Islands, to implement spending reduction measures.
Mapp's order goes into effect immediately and will continue until he countermands it.
Mapp is meeting on Friday with member of his cabinet to learn how they propose to institute the 10% cuts in spending he has directed.
The Virgin Islands Senate is considering a series of taxes that the governor has proposed. He has said that some of the orders and cuts may not be necessary if the Senates passes the taxes.
The Virgin Islands government has about $1.9 billion in outstanding bonds. The Water and Power Authority has additional bond debt outstanding. The rating agencies now rate all of this debt with speculative grades.
