Home News Local news Senate Cuts Governor's Budget, Restricts All Executive Spending

Senate Cuts Governor's Budget, Restricts All Executive Spending

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The V.I. Legislature voted to cut the budget of the Office of the Governor by three-quarters for Fiscal Year 2015, and then voted to change existing V.I. law so that outgoing administrations may only spend 25 percent of the executive budget in a transition year, during session Tuesday.

The first budget cut was unabashedly meant to be a slap in the governor’s face, while several senators said the second cut was not meant as a personal attack, but as prudent policy.

When Sen. Craig Barshinger proposed the first measure, which cuts the line item for the Office of the Governor from $9 million to $2.25 million for FY15, he read a series of "whereas" passages, laying out a series of grievances against the governor, concerning wanting to see cell phone records, gasoline receipts, encumbrances on the St. John Capital Improvement fund and other complaints against the administration.

"It is limiting his budget so he cannot overspend the budget of the next governor," Barshinger said.

The measure cuts the total annual budget, so by itself Barshinger’s proposal has the effect of funding the deJongh administration until January, then leave the executive office entirely unfunded for the rest of the year, after deJongh’s departure. However a subsequent amendment further restricted the governor’s spending for any executive agency, including his own office.

Voting in favor of Barshinger’s proposal to cut the budget of the Office of the Governor by three-quarters were Barshinger, Sens. Diane Capehart, Kenneth Gittens, Myron Jackson, Shawn-Michael Malone, Nereida "Nellie" Rivera-O’Reilly, Clarence Payne, Tregenza Roach and Sammuel Sanes. Voting no were Sens. Judi Buckley, Donald Cole, Clifford Graham, Alicia "Chucky" Hansen and Janette Millin Young.

Later the Legislature also approved an amendment from Graham forbidding the executive branch from spending more than 25 percent of the executive budget during a year in which an administration transfer occurs.

Roach asked legal counsel if the measure violated the principle of separation of powers and was told the measure was within the Legislature’s powers to set budget amounts.

The measure also affects charitable organizations that are funded in the miscellaneous section of the budget through the main executive agency budget bill, Graham said.

Senators insisted this measure was being considered for the sake of good public policy and not as a personal vendetta.

"This bill is more universal than the one the body approved prior," Millin Young said, comparing it to Barshinger’s measure cutting deJongh’s office’s budget. "I think many of my colleagues approved the prior measure for just the outgoing administration, but this one is to ensure that any administration only uses 25 percent of their funding in a transition year," she said.

Graham said, "It makes sense. Any administration could spend more than their share and leave the incoming administration holding the bag. It is really just the right thing to do."

Voting to make only 25 percent of the Office of the Governor’s reduced $2.25 million budget available to the administration were Barshinger, Capehart, Cole, Graham, Jackson, Malone, Payne and Millin Young. Voting no were Buckley, Hansen, Nelson, Rivera-O’Reilly, Roach and Sanes. Gittens was absent.

The Legislature made a number of other, smaller changes to the $558.1 million budget bill [Main Budget Bill]

Graham sponsored a series of revenue generating amendments. One generated some opposition: to allow the V.I. Water and Power Authority to bill customers for streetlights when it reduces the fuel surcharge, and to restore the portion of property taxes currently devoted to streetlights to the V.I. treasury.

“If this amendment is approved, then the WAPA bills will drastically increase. This bill needs be taken off the agenda and placed in committee for further consideration,” Rivera-O’Reilly said.

Graham said street lighting needs to be improved and giving WAPA more authority in this area would help.

“There are some parts of the island that are too dark because the street lights are not working,” Graham said, adding that the amendment would make roads safer and help balance the budget.

Post Auditor Jose George said the measure should free up about $2 million per year.

Voting for the change were a majority of eight senators Barshinger, Capehart, Cole, Graham, Jackson, Malone, Payne and Millin Young. Voting no were Buckley, Gittens, Hansen, Nelson, Rivera-O’Reilly and Sanes.

Other amendments:
– from Roach, adding electronic cigarettes to the list of taxed tobacco products;
– from Roach, forbidding Board of Elections members from seeking any other public office during their term of office unless they resign entirely from the board;
– from Payne, allowing the Nurse Licensure Board members to continue to serve until replacement, to allow the board to keep its quorum and continue certifying nurses;
– and from Jackson, requiring that lands foreclosed on by the V.I. Government "that are beneficial to the territory" be put in a land bank for public use and that properties be assessed for this land bank before being auctioned off.

Along with the main budget bill, the Legislature approved the government health insurance contracts and several bills special ordered onto the agenda Tuesday.

One bill from Sanes and Rivera-O’Reilly devotes any "proceeds from the sale of Hovensa," if any, and any corporate income taxes from a new refinery over the next 20 years to the St. Croix Capital Improvement Fund.

Another requested by deJongh removes excise tax and customs duties from most personal electronic goods.

3 COMMENTS

  1. These Senators would be wise to do the same thing with their own budget and restrict their spending the same way. Giving away 10 acres of land, $300,000.00
    of taxpayer money and free rent for an indefinate period of time, at this or any time without public input is irresponsible. I heard that they also gave a “$1.00 (one dollar) land sale made to the owners of the LaReine Chicken Shack for all those acres. They are Senator Samuel Sanes’s in-laws.”

    Graham who sponsored a series of revenue generating amendments must be out of touch with the reality of the people is is supposed to be serving. To allow the V.I. Water and Power Authority to bill customers for streetlights when it reduces the fuel surcharge, and to restore the portion of property taxes currently devoted to streetlights to the V.I. treasury will only bring more hardship to the already overburdened taxpayer that the Senators have no problem tapping when they want money for thier “pie in the sky” projects. When we are paying what the rest of the US pays for electricity (19 cents per KWH which is still high) he can talk to us about paying for street lights. We are taxed enough as it is for the miniscule services this Government provides.

    Enough of the fiscal irresponsiblity!
    And get Chucky out of the Senate.

  2. Chucky vote no on the bill to charge the people for streetlights. The voting went like this:

    Senator Craig Barshinger — Yes
    Senator Judi Buckley — No
    Senator Diane Capehart — Yes
    Senator Donald G. Cole — Yes
    Senator Kenneth Gittens — No
    Senator Clifford Graham — Yes
    Senator Alicia “Chucky” Hansen — No
    Senator Myron Jackson — Yes
    Senator Shawn-Michael Malone — Yes
    Senator Terrence “Positive” Nelson — No
    Senator Nellie Rivera-O’Reilly — No
    Senator Clarence Payne — Yes
    Senator Sammuel Sanes — No
    Senator Janette Millin Young — Yes

  3. It is one thing to be upset with the Governor, but not so upset the Senate should punish the people of these islands with laws that are just going to cost money and time to repair.
    Question; do you wait for the results of the election to determine if the incumbent got re-elected before you fund the Executive Branch. That means from October 1st to the day after the election, the Governor will have no money.
    This must be a punitive bill or the Senate would have seen fit to do some lame-duck restructuring of their own last quarter, where they give away the store to get re-elected and vote themselves pay raises.
    Remember the special session called to give the Senate a raise, at literally the last minute. This is what has happened with this “Found” Medicare or Medicaid money.
    If, for some strange reason, St. Croix feels entitled to ‘own’ the taxes from the refinery and discontinue the practice of ‘all for one and one for all’ that has helped see these islands through hard times and good times, then it is time to start examining economic policy and divide this pie up. Since all Senators voted against Diageo, that should be a St. Thomas source of income.
    All of the Gross Receipts should stay on the island that generated them, so St. Thomas keeps all the revenue from sales on St. Thomas. Same as property tax, St. Croix is bigger, but the property is valued at much less than St. Thomas.
    Mr. Barshinger is stepping down with a legacy of foolish bills, like Mandatory Health Care for the private sector and not for Government employees. Thank goodness that went nowhere.
    In any case, not a single sitting Senator will receive my vote and to make it better, I’m going to vote for anyone but.
    You should all be ashamed of yourselves and the unintended consequences of their actions will be a millstone around the necks of the Virgin Islanders you were voted to protect..

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