"Very grave" were the words Gov. Charles W. Turnbull used to describe the financial state of the territory in his first State of the Territory address Monday night.
Turnbull's tone throughout his address was one of gravity and urgency concerning the territory's "precarious" fiscal condition.
He said he had inherited a government that had doubled its long-term debt in four years to $1 billion. He referred, in addition, to the $489.2 million legislative appropriation for fiscal year 1999 including a proposed "technical amendment" of $23.4 million, which is, in fact, he said, a supplemental budget to cover expenses already committed. And he said the shortfall for fiscal year 1999 in the general fund will be $246 million.
He reported that many departments and agencies are in danger of losing federal funds because of non-compliance or non-use of the funds.
Turnbull was quite clear that the government will have to"bite the bullet" and stop living beyond its means. He said all branches must face reality, impose discipline and make sacrifices. Even with that, he said, the government faces the specter of payless paydays.
He set forth some plans to reduce government spending by:
— Implementing "a serious and real attrition program" that will reduce the workforce by 25 percent over five years.
— Halting duplication of services. He said he will soon propose a government-reorganization plan to consolidate departments and services.
— Limiting the number of exempt employees in his administration.
— Reviewing all leases and contracts to see which can be eliminated.
He proposed a broad spectrum of initiatives to increase revenue, including streamlining the permitting process, appointing a tax review commission to study the Industrial Development Commission and Government Development Bank procedures and enforcement to ensure compliance by beneficiaries, and appointing a task force to recommend ways to revitalize the beleaguered marine industry.
He even hinted at the possibility of investing in a territorial airline that would provide consistent service with affordable prices.
In keeping with his campaign promises, he said he would give special attention to the needs of St. Croix by bolstering support for casino gambling and working toward developing St. Croix as a homeport for cruise ships.
He also committed to spending 100 percent of the hotel occupancy tax on advertising and marketing all three islands as separate and unique destinations. Turnbull, a former Education commissioner, called education the "key to conquering the next century." He said we must improve student achievement and make sure all Virgin Islands children are computer literate.
He promised to implement measures to enhance the academic integrity of the University of the Virgin Islands, but did not say how he would pay for this and other improvements in services without money in the treasury.
He declared an "unrelenting war against drugs and crime" that would assure the safety of residents and tourists alike. And he promised to focus attention on the hospitals and health care facilities in the territory and to give them autonomy.
In his relatively short speech, punctuated often by applause, Turnbull pledged to address other issues in greater depth — such as youth, agriculture and our Hispanic community — at a later time.
He also said that despite serious funding shortfalls, the government still must provide quality services. That kind of service traditionally "begins with a warm greeting and ends with a fond goodbye," he said.
Turnbull called for the return of respect to the way of life in the Virgin Islands and made a commitment, himself, to maintain that respect for all individuals and all branches of government.
"We can agree to disagree without being disagreeable," he said.
He referred to the "tri-pillars" of his "grander vision" — unity, respect and service — and said that with those goals in mind, "We can reverse our present course" and the state of the territory "can become excellent."
Editor's note: The full text of the governor's State of the Territory address can be found on the Local Government News page.