With some reluctance — and a few stipulations — Delegate Donna Christian Christensen will help in the effort to go after gasoline excise taxes.
Christensen said she will voluntarily assist with the recently enacted Gasoline Tax Cover Over Task Force, spearheaded by Sens. Donald "Ducks" Cole and David Jones. Territorial Presiding Judge Verne Hodge, who led efforts to win a percentage of the tax as V.I. Attorney General during the Gov. Juan Luis administration, is also a strong proponent of going after the gas tax.
But Christensen has taken heat recently for her position that now is not the time to ask Congress about the tax despite the territory’s financial problems. She said pursuing the petroleum tax could be detrimental to other initiatives. Rather, she contends that the focus should be on recovering the full amount of excise taxes on rum, which would bring in an additional $10 million to $12 million annually.
Going after the gas tax could also jeopardize the territory’s effort to have the federal government forgive the V.I.’s $200 million FEMA Community Disaster Loan, she said. If the loan isn’t forgiven, the territory will have to start making annual payments of $25 million beginning in 2001.
Also, there is an effort underway in the White House and in Congress to provide the V.I. with a multi-year construction grant worth more than $50 million.
Despite her stated position, however, Christensen said she will "assist the commission's efforts in light of my commitment to the people of the Virgin Islands to do whatever is necessary to assist in the return of the treasury to financial wellness."
But that assistance has its limits, including attending only "key" commission meetings where final input and approval of strategy is discussed. The delegate said she will assign staff "as listeners" to attend scheduled meetings of the commission.
"I will assist the commission in identifying experts to advise on the technicalities of this issue and strategy for approaching members of Congress and other federal officials," she said. "This includes facilitating meetings between the commission and appropriate federal officials."
Christensen also said the commission should look not only at gasoline, but should expand its request to include all operations that take place within the Virgin Islands that may fall under the cover-over provisions of the Organic Act.
"There are other production activities in the territory from which we may recover revenues," said Christensen. "We should investigate them all."
Meanwhile, Cole said the delegate should be involved in the entire effort. And while he agreed the other measures need to be addressed, he said the gas tax should get top billing.
"The gas tax issue, I believe, is the issue," Cole said. "All we are doing is asking her to participate and lead the effort. I really believe the delegate doesn’t want to be a part of (the commission)."
Cole said it was ironic that Christensen introduced legislation in Congress that would help facilitate the Turnbull administration’s efforts to float a $100 million bond sale but that she is reluctant to seek a return on the gas tax. He said that if the bond legislation makes it to the V.I. Senate without provisions to help reduce spending in government, like an early retirement program, he won’t support it.
Christensen said that while she appreciates the position that the governor and the Legislature are in and the need for new sources of revenue, the leaders should test the "current political climate in Washington" and "deal with the truth and not . . . wishful thinking…."