July 12, 2006 – A budget of approximately $2.6 million for fiscal year 2007 will not be enough to fund much-needed employee positions or new computer systems, according to Andrew Rutnik, commissioner of the Department of Licensing and Consumer Affairs.
During budget hearings Wednesday, Rutnik explained that the department's proposed budget reflects a minimal increase – approximately $200,000 for salaries – over last year's appropriation. To cover the additional costs, Rutnik said that DLCA would be submitting a supplemental budget request of $645,429 to the Legislature.
"Each year we make a case to the Office of Management and Budget and the Senate for more enforcement officers in all our divisions … and each year we are forgotten soon after the budget hearings. So in this, my final budget request, I will seek your support for these new positions," Rutnik said.
After the meeting, he added that over the years, DLCA has seen a 37 percent staff reduction, which has resulted in the elimination of many critical positions – most of which, he said, are included in the supplemental budget request.
In addition to enforcement officers, Rutnik said the DLCA needs: a network technician, a weights and measures inspector, a consumer compliance and protection officer, a records clerk, an administrative officer for St. Croix and a public relations officer. During the meeting, other DLCA representatives said operations in each district "would be more efficient" if "more staff were on board."
The supplemental budget request also includes $77,481 for taxi monitors responsible for keeping illegal taxi operators in check while "applying laws evenly and fairly so both citizen and visitor are given the level of service they deserve," Rutnik said. He indicated a balance needed to be established between "gypsy taxis," which run "unfettered" across the territory; and legally run taxis that do not provide transportation to local residents.
Since DLCA's current network will not be able to tap into the new Enterprise Resource Planning System – scheduled to replace the government's old financial management system sometime this year – new computers are also needed in both districts, Rutnik said.
"This is my final plea for these things," he added. "Both the personnel and the systems are necessary in order for us to meet certain milestones – especially with the government's implementation of performance-based budgeting, which would require us to show what we're doing within the department."
In addition to asking for more money to complete the department's computer network, Rutnik "implored" senators to take a look at DLCA's St. Thomas headquarters. "Today, senators, this vintage building is a fire trap, and I am quite sure it would not pass any inspection by the Fire Department, the Occupational Safety and Health Administration or any other agency entrusted with the health and welfare of its occupants. This building should be condemned and all current occupants moved to safer quarters," he said.
In response to a question from Sen. Pedro "Pete" Encarnacion, Rutnik explained that the department had planned to move to a space in Nisky Center. "We spent two years trying to identify a new site," he said. "We deliberated, put the proposal together, then went to Property and Procurement and the Department of Justice, who both said everything was fine. We then sent our proposal to Government House, and it was denied."
Rutnik said he has also been asking the Legislature "for years" to grant the DLCA the authority to control price gouging throughout the territory and to shut down unlicensed businesses.
Rutnik explained that DLCA had previously attempted to regulate the amount of profit realized by the territory's fuel wholesalers and retailers. "For the wholesalers, we had established that they would be realizing a gross profit margin of 35 cents per gallon, while retailers would be making 30 cents per gallon," he said. "And that was challenged by the gas companies. They took us to district court, and the case has been sitting there since 2004."
Rutnik added that he would take "immediate action" if the Legislature crafted a bill specifically stating that DLCA had the authority to set the gross profit margins for fuel in the territory. He added that "profit margins on St. Croix, St. Thomas and St. John" were, in some cases, "far above industry standards."
Rutnik further outlined two initiatives that could require future appropriations from the General Fund: a proposal for taxi reform (including restrictions on "dollar buses" and safaris) and a phase-by-phase plan for a new Vendor's Plaza on St. Thomas.
In response to questions from senators, Rutnik explained that plans to establish the new Vendor's Plaza in the old District Court building are already under way, with Jaredian Designs currently in the process of determining whether or not the structure can be rehabilitated.
The department's budget proposal also includes $1 million for the Public Services Commission (from the Public Services Commission Revolving Fund) and $646,625 for the Taxi Division (from the Taxi License Fund). After the meeting, Rutnik said these entities are located under DLCA for budgetary purposes but do not receive funding from the department or the General Fund.
However, both appropriations have to be authorized by the Legislature.
Present during Wednesday's meeting were Sens. Craig W. Barshinger, Roosevelt C. David, Liston Davis, Encarnacion, Juan Figueroa-Serville, Louis P. Hill, Neville James and Ronald E. Russell.
Sens. Norman Jn Baptiste and Usie R. Richards were absent.
Back Talk
Share your reaction to this news with other Source readers. Please include headline, your name and city and state/country or island where you reside.
