July 30, 2008 — Hikes in utility costs, salaries and health insurance factored into the University of the Virgin Islands' request for a budget increase $4.5 million higher than the figure recommended in the budget proposed by the deJongh administration, UVI officials said Wednesday.
LaVerne Ragster, president of the University of the Virgin Islands, and other university officials asked the Finance committee in Frederiksted for $39 million for the fiscal year 2008-2009.
Ragster said the University did not receive V.I. government assistance for utilities as many other public entities did.
"The university was not in arrears on utility payments," Ragster said. "We made the decision to forego other expenditures to keep the lights on."
The university's decision to exercise fiscal responsibility by paying its utility bills on time precluded financial assistance, Ragster said. She said the campuses are doing all they can to conserve with energy-efficient lighting, windows and climate control systems.
Ragster also said the University must be able to pay competitive salaries to recruit the high-quality faculty and staff needed to fulfill its mission. The current concern is the erosion of salary adjustments as the cost of living in the territory continues to rise, she said.
"We are nowhere near where we want to be in salaries," Ragster said.
"How do the average salaries for professors compare to national levels?" asked Sen. Liston Davis.
Compared to 60 liberal arts colleges, UVI is one step below average, said Vincent Samuel, vice president of administration and finance.
Ragster said the institution continues to be challenged by the annual increase in health insurance premiums. In this instance as well, they have had to bear the increase in cost without any additional general fund allotment, she said.
Ragster pointed out to committee members that if the university does not receive sufficient funding to support its operations and realize its mission, some of the consequences might be inadequate technology support for the learning process and facilities, loss of faculty and staff, inability to retain or maintain academic programs and more.
"There are no guarantees — and no harm in asking," Sen. Terrence "Positive" Nelson, the committee chairman, said. "We'll see what we can do with your request."
David Zumwalt, executive director of the University of the Virgin Islands Research and Technology Park (RTPark), testified with Ragster asking for increased appropriations for RTPark. Zumwalt requested $1.4 million for an operating appropriation for fiscal year 2009. The governor has recommended $900,000 for the RTPark.
Zumwalt provided committee members with a progress report on the operations and development.
Zumwalt said the request is a much-needed investment in RTPark at a time when they are on the verge of opening up a new economic sector that will begin to produce revenues for the territory during the fiscal year.
He said that they anticipate revenue streams from operations totaling $500,000 in fiscal year 2009. Working with their strategic partners, they will update their business plan to establish mutually agreed goals and metrics for future performance, including employment targets said Zumwalt.
The technology park is an economic development initiative begun by the university that officials hope will ultimately benefit the university and the territory by providing jobs and tax revenue. The goal is to provide the infrastructure and setting for Internet-based commercial enterprises which will generate tax and rent revenues and create jobs.
Other committee members at the budget hearing were Senators Juan Figueroa-Serville, Ronald Russell, James Weber III and Usie Richards.

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