While signing the fiscal year 2011 budget bills into law Friday, Gov. John deJongh Jr. cautioned that the territory will still have to keep a close watch over its finances during this continued "period of economic turbulence."
Over the past few months, the governor’s financial team has explained that while the economy is stabilizing, the overall financial picture is still going to be rocky for much of FY 2011. In a letter sent to Senate President Louis P. Hill along with the signed bills, deJongh underscored this message by saying the Office of Management and Budget will make its budget allotments, as it has in past years, based on whatever money is available in the coffers.
At a recent Senate hearing, OMB head Debra Gottlieb said revised revenue projections for FY 2011 total about $831 million, but recommended that only $826.7 million be used to cover expenses and appropriations, leaving a few million as a cushion in case of emergency. Revenue figures factor in, among other things, about $92.5 million in projected real property taxes, $27.1 million in federal state fiscal stabilization funds and more than $100 million in bond proceeds — part of a $400 million bond issue being used to cover budget gaps in both fiscal years 2010 and 2011.
During the recent markup process, however, senators pushed the limit, adding specific line items for various departments and agencies, and in the miscellaneous section of the budget.
The FY 2011 General Fund budget now adds up to a little more than $831 million, covering the: central government departments and agencies, about $591 million; Legislature, $19.8 million; V.I. Supreme Court, $6.5 million; V.I. Superior Court, $28.8 million; V.I. Judicial Council, $286,439; and Office of Public Defender, almost $3.7 million.
The General Fund total also includes separate appropriations for the University of the Virgin Islands, Waste Management Authority, WTJX Channel 12 and the Elections System, all of which were passed by senators during last month’s full session.
The miscellaneous section, where the bulk of the money is put toward community groups, non-profits and other social causes, adds up to approximately $112.5 million.
A good chunk of the budget bills signed into law also help support the government’s expenses by making contributions from the various government funds into the General Fund, or from revolving funds that, by law, provide money each year to specific departments and agencies. Some of the revolving funds also receive contributions from the General Fund to cover these proscribed costs.
The governor has yet to act on an omnibus bill that made its debut at the end of last month’s session. The bill, which contained a host of policy changes, also put approximately $10.5 million in special funds, along with $2 million from the St. Croix Capital Improvement Fund toward shortfalls in the budget and a long list of what senators have described as "critical" community projects and other needs.
The omnibus, according to a release from Government House, was only sent to the governor’s desk Oct. 14.
Meanwhile, the governor also signed into law a bill expanding the Pharmaceutical Assistance to the Aged Program under Human Services – which will now provide medical supplies and equipment to the elderly needed for the treatment of chronic diseases – along with three bills deJongh said help the government’s efforts to fight crime in the territory.
The bills: clarifies the powers of the V.I. Superior Court’s Family Division in cases where a child is found delinquent or in need of supervision and lays out what guardians’ duties are with regards to caring for that child; requires cash for gold vendors to record their transactions; and streamlines a recently passed bill that appropriated money to the Lieutenant Governor’s Office to help in developing the first data layer for a territory wide geospatial information system.
DeJongh said he was also signing into law the Senate’s new Commercial Vehicle Inspection and Commercial Driver’s License Act, which brings local laws up to par with federal guidelines when it comes to the unsafe operation of commercial vehicles, along with imposing fines for violations.
On the chopping block this time around was a bill senators have said is meant to curb the influx of illegal firearms into the territory. In his letter to Hill, deJongh said the Police Department objects to the bill’s language because it impairs its officials’ ability to stop the use of illegal firearms in violent crimes.
"In effect, the implementation of this measure would eliminate the Police commissioner’s authority to deny a firearm license to a person, other than expressly stated in the Code, although the individual is justifiably unsuitable to possess a firearm – such as an undocumented person," deJongh wrote. "The bill further eliminates the police commissioner’s ability to issue any rules and regulations for the control of firearms and ammunition throughout the territory, which leaves a major gap in law enforcement’s ability to regulate firearms licenses through maintaining registration standards in the territory."
DeJongh urged senators to revisit and revamp the bill so it doesn’t "hinder law enforcement’s efforts."