June 30, 2006 – "A lack of funding, lack of personnel and the inability to expedite various projects has made our department weak," said Public Works Commissioner George Phillips at Friday's Senate Finance Committee meeting.
Phillips, who spoke in support of a $20.2 million budget request for Fiscal Year 2007, emphasized that Public Works needed money to hire employees (primarily engineers), to acquire new equipment, to maintain public roads and to continue various community services.
He said the department's budget, which reflects a $2.5 million increase from FY 2006, includes $8.7 million for personnel services, $2.6 million for fringe benefits, $302,824 for supplies, $700,000 for utilities and $600,000 for capital outlays.
In response to a question from Sen. Juan Figueroa-Serville, Phillips said that some funds within the capital outlays section would go toward purchasing "heavy equipment" for repairing roads.
"Since the depletion of our heavy equipment fleet, we have had to outsource much of our road repair work," Phillips said. "The time has come for us to rebuild our capability to get back into the road building business."
Another portion of the department's budget – which amounts to approximately 22 percent of the proposed General Fund appropriation – will go toward hiring personnel. Phillips said the department's office in Frederiksted is "critically" in need of a director of operations, as well as a field aide who would be responsible for handling complaints from various government entities.
Phillips said that while Public Works has "tried to make the best of what it's been given" by coming up with innovative methods of conserving funds, the department still has to provide assistance to other departments and agencies, and to pay for projects that are supposed to be funded through the Federal Emergency Management Agency.
"The general method of dealing with FEMA-funded projects is that we don't move forward with what we have to do and fight with FEMA for the money," he said. "What we're doing now, however, is funding those projects ourselves – which we do through the money we receive through the General Fund – then fight with FEMA for the money," he said.
Phillips added that the department does not get reimbursed for the services provided to other government agencies, which includes reviewing architectural and engineering plans and helping with maintenance projects, among other things.
In his presentation, Phillips also said there is still $26 million worth of road repairs to be completed throughout the territory. "On St. Thomas, that estimate is $15 million; St. John's estimate is $1 million; and St. Croix's estimate is $10 million," he said. "However, even if we're given all the financial resources we need, we still don't have enough road or construction crews necessary to complete these repairs."
In response to a question from Sen. Louis P. Hill, chairman of the Finance Committee, Phillips also said that this year's budget does not reflect the need for most of the repairs. "During this budget process, we are given a ceiling by the Office of Management and Budget," he explained. "And we have to work within that ceiling, so some of the things we want to do are not accomplished."
While Phillips said some projects are completed when funds are appropriated by the federal government, the Legislature or the Public Finance Authority throughout the year, he also said there is $6.4 million worth of funds that have not yet been released by OMB. He explained that the money comes from interest earned on bond proceeds – a government account that has been over-appropriated.
"Having that money would really help us to put a dent in some of the road repairs we're receiving complaints about," Phillips said after the meeting. "But that money is only released once every year, so we won't get it until around September."
Additionally, Phillips said the department is waiting for the Waste Management Authority to repay a $1.1 million loan. "That's our biggest outstanding receivable right now," Phillips said, adding that senators should look at streamlining the WMA's operations by turning over the responsibility for managing solid waste over to Public Works.
Despite the lack of funding, however, Phillips impressed senators by outlining a list of projects the department has completed over the past fiscal year – including the purchase of additional buses for VITRAN on all three islands and the implementation of a program which trains youth to be professionals in transportation and engineering.
Phillips said the department also has been successfully bringing in small local businesses to serve as subcontractors for various Public Works projects. "But just because we're giving you some good news it doesn't mean that the Legislature should cut our funding," he added. "We still need to expand our service, so we need a continuous revenue stream from the government."
Phillips subsequently listed a number of initiatives the department would be undertaking over the next two years, including the completion of the Christiansted bypass on St. Croix and the Lover's Lane expansion project on St. Thomas; the strengthening of ferry-boat service between St. Thomas and St. John; and the paving of roads within the territory's housing communities.
Phillips said that in addition to providing funding, the Legislature should reinstate the Public Works Acceleration Board, which would allow the department to contract services for various projects without having to go through Property and Procurement. While the board would have the ability to float bonds to secure these services, Phillips assured senators that any bond issues would go through the Public Finance Authority.
"This would be a great help to us," Phillips said. "Because even though we have done a lot this year, there is still a lot more to be done."
Present during Friday's meeting were Sens. Craig W. Barshinger, Roosevelt C. David, Liston Davis, Figueroa-Serville, Hill, Neville James and Usie R. Richards.
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