U.S. Virgin Islands Gov. Albert Bryan Jr. submitted a proposed biennial budget that asks for less spending in fiscal 2023 even as it projects more revenues.
The budget, which the U.S. Virgin Islands Senate will modify this summer, calls for a 2.9% decline in General Fund spending in fiscal 2023 compared to the current fiscal year, 2022. The territorial government’s fiscal years run from Oct. 1 to Sept. 30.
The budget also projects General Fund revenues will increase 4% from this fiscal year to the next. Both revenues and expenditures are projected to be $919.5 million in fiscal 2023.
Bryan said his government was projecting revenue growth in the five major General Fund revenue collection categories: Personal Income Tax, Corporate Income Tax, Real Property Tax, Gross Receipts Tax, and Excise Tax.
From fiscal 2023 to fiscal 2024, the proposed budget anticipates General Fund revenues will increase by 0.9% and expenditures will increase 0.2%.
The total operating budget, including appropriated, non-appropriated, and federal funds, is $1.354 billion and $1.340 billion in fiscal 2023 and 2024, respectively.
These figures do not include federal disaster recovery funds, which primarily stem from two major hurricanes that hit the islands in 2017. The government expects $8 billion of these federal funds, of which $6.4 billion has been allocated, $5.2 billion has been obligated, and $2.6 billion spent.
For many years the General Fund has been receiving money from “matching fund” taxes on Virgin Islands’ rum sold in the United States. As part of the government’s effort to
In late March the government
“Accommodations have also been made within the budget to continue building back the Government of the Virgin Islands’ workforce and to providing long overdue salary increases to increase the quality of life for many families in the USVI,” said Office of Management and Budget Director Jenifer O’Neal. She said the fiscal 2023 budget has $16.2 million for employee wage increases. This is a 3% increase that includes fringe benefits.
She said the budget decreases the Transportation Trust Fund contribution to the General Fund to $5 million from $10 million to allow the fund to spend more on road maintenance.
The budget also provides $25 million for unpaid wages owed to retirees.
The departments with the biggest expenditures in fiscal 2023 are proposed to be those of education at $177.2 million, police with $71.3 million, human services at $66.7 million, and supreme court at $40 million.
Employment on the island was at 35,150 in March, 92% of pre-pandemic levels, the governor noted, adding that employment had been on the rise in the preceding 12 months and has been continuing to increase since then.
According to the budget, the islands had $569.7 billion of gross receipts tax bonds and $67.1 billion of Grant Anticipation Revenue bonds outstanding as of April 30, 2022. The bond sale refinanced $955.5 million of the matching fund bonds.
