Citing a $19 million budget shortfall, Gov. John deJongh Jr. proposed three stopgap legislative measures this week: extending the unpopular 8 percent government pay cut; authorizing bank funding to bridge the shortfall; and funding health insurance premiums to the end of the fiscal year. [Governor’s Proposed Legislation]
“If they choose not to pass this proposed legislation, then I call on them to pass any measure of their choice that will deliver the combination of increased revenues and reduced spending in time to make payroll and pay health insurance premiums from now until Sept. 30,” deJongh said in a statement Wednesday announcing the proposals.
The unpopular pay cut was legislated in 2011 as an emergency budget measure and is due to expire July 3, 2013.
“We must have a plan and, like many of you sitting around your kitchen table at home, if there is less money coming in, you have to reduce your spending to what you can afford,” deJongh said in a statement.
Meanwhile deJongh will be sending the Fiscal Year 2014 budget to the Legislature in two weeks, which he said would cut "to the extent he believes those cuts are consistent with the best interests of the territory." Instead of calling for specific measures to raise revenue, the governor said he will lay out several choices for the Legislature to select. He said if there are not any they are prepared to support, they should propose budget cuts to make up the difference.
It should come as no surprise that the VI legislature will never provide any relevant revenue generating ideas because they are basically irrelevant in such matters. History has proven this time and time again regardless of which 15 members are elected. The VI governments bandage fixes of borrowing from Peter to pay Paul is and will always be a recipe for disaster. Common sense will tell you that a government without a natural resource to provide revenue, has to be run by income taxes. Income taxes are generated by jobs, real jobs from businesses. How many new jobs has the VI government specifically the VI legislature brought to the territory over the last 10 years. But yet we continue to borrow money that at some point has to be paid back. Don’t blame the recession or the closure of Hovensa for their lack of vision and no creativity. Anyone that tries to bring something new to our people are constantly disrespected and told they don’t understand our culture. Well guess what people our culture of accepting a non productive government is what is killing our islands.
I totally agree.. When Hovensa closed they held meetings with the community to bring forth ideas on how to re-invent the VI economy… They even held prayer services (???), and this and that… then, nothing… A big nothing happened… No one said it was going to be easy to get the economy redirected and going again but, if you do nothing about it things do not fix themselves up… Shame on them!
I was shocked this morning to learn that Sir Hugo ‘Hurricane’ Hodge was given increases totaling $30,000 to his original contracted salary of 150K. I support high compensation when and where it is warranted. However, ratepayers are told that they must understand the circumstances why rates are so dam*&^$$ high; we must accept the situation. Businesses have closed as a result and Virgin Islanders are running to the mainland for reprieve. These guys like Hugo seem to be immune from the ‘situation’ and the ‘circumstances.’ Until we all benefit from the ‘situation’ all of we should suffer together. Even the captain of the Titanic had enough honor to go down with his sinking ship. Wapa’s captain is making sure that he has a ‘go-fast’ boat ready and waiting for his use when the Wapa ship sinks. Equipped with wet bar and Popeye’s Fried Chicken to keep him in shape.
“Secretary of State John Kerry last month secretly sent $1.3 billion in U.S. military aid to Muslim Brotherhood-controlled Egypt”
–
Plenty to go around the world . . . just not here.