Jan. 24, 2002 – U.S. and local education officials are poised to enter a compliance agreement that will outline changes the local government must make to avoid losing out on hundreds of millions of dollars in federal education funding.
For years, the local government has failed to comply with requirements regarding financial management, human resources, administration and other areas of management of the federal dollars, according to documents from the U.S. Department of Education. Recent audits have shown that many of the areas still have not been addressed and that the necessary changes will take more than a year to implement fully.
"The findings in various audits made clear that large-scale fiscal and programmatic problems that have existed for a number of years continue to exist," according to the federal Department of Education notice of public hearings on the compliance agreement. "These problems are present in many key aspects of program administration, including procurement, program planning and implementation, human resource management, and financial and property management, and affect the ability of the V.I. to spend the department's program funds properly and effectively."
As an alternative to cutting off the funding, the federal officials have agreed to enter into a compliance agreement with the V.I. government that outlines specific changes that need to be met and sets out a timeline for meeting them. If the territory fails to meet the requirements, it could be in danger of losing the federal funds, according to the documents.
The Virgin Islands "could have up to three years to come into compliance with certain federal requirements," the public hearings notice states. "During this period, V.I. would continue to be eligible to receive funds under these programs, but must demonstrate reasonable, consistent progress toward the goal of full compliance."
The hearings, scheduled for Feb. 5 on St. Croix and Feb. 7 on St. Thomas, will be an opportunity for members of the public to provide input on the proposed compliance agreement.
In September 1999, the U.S. Department of Education designated the Virgin Islands as a "high-risk grantee," which placed special conditions on several federal grants to the territory's schools. When it became apparent that the necessary changes would take more than a year to implement, federal officials suggested — and V.I. officials agreed to — entering into the compliance agreement.
The questions of management have to do with several federal programs involving hundreds of millions of education dollars in the territory. The Virgin Islands received $159 million in special education funding, $33 million for adult and vocational education, and $179 million for the teaching of disadvantaged children for this year, according to Jim Bradshaw, a spokesman for the U.S. Department of Education.
These and other federal funding programs would fall within the scope of the compliance agreement if it is adopted, he said.
"We want to assure that the territory is carrying out the programs according to the law," Bradshaw said. "We're working with the territory to come into compliance. But there's a lot of work left to be done."
V.I. Education Department officials did not respond Thursday to questions about the compliance agreement.
The St. Croix hearing is scheduled from 9 a.m. to 4 p.m. on Feb. 5 at the National Guard Armory in Christiansted. The St. Thomas hearing is set for 9 a.m. to 4 p.m. on Feb. 7 at the Palms Court Harborview Hotel. Both are open to the general public.