The V.I. government's tenuous cash-flow situation has gotten even worse because revenues this fiscal year have been lower than expected, Ira Mills, acting Office of Management and Budget director, has disclosed.
"Even though the third quarter generates the most significant resources, lesser cruise-ship activity may generate fourth-quarter revenues below anticipated yield, but the Sinbad's concert may generate offsets," Mills said in a written statement to the Daily News.
The paper submitted questions to Mills after Michael Watson, treasurer of the Casino Control Commission, said at a meeting Thursday that the government released the commission's second-quarter allotment in January but took it back, making it impossible for the agency to pay its bills or buy supplies.
Mills denied releasing and then withdrawing that allotment and said the Turnbull administration is releasing second-quarter allotments to all agencies, the Daily News story said, quoting Mills as saying the Casino Commission will get its allotment Monday.
The 1999 fiscal year started Oct. 1. The second quarter runs from Jan. 1 to March 31, which is high season for tourism so budget analysts watch it closely to determine how much in revenue is being generated for the V.I. treasury.
Mills statement to the Daily News also said that OMB "has asked all department/agencies to revise spending plans with reduction in spending to the updated level of lower anticipated revenues, and consistent with the governor's directive to restrain spending within the level of available resources."
