July 25, 2007 — While the overall budget for the Department of Public Works has increased by about $10 million for fiscal year 2008, agency officials said Wednesday that a key component is still missing: money for additional road projects.
During the second round of budget hearings, Public Works Commissioner Darryl A. Smalls explained that an additional $50 million would be needed to cover all road projects currently on the department's drawing board. However, those funds are not included in Public Works' FY 2008 budget recommendation, which is currently set at approximately $50.6 million.
"Although the Department of Public Works continues to make significant strides, there remains a material shortfall in the availability of funds needed to embark on critical infrastructure improvements," Smalls said. "Providing an annual revolving funding source will enable this department to plan and implement major improvements to government facilities, as well as with the territory's roads and drainage systems."
Supporting Smalls' remarks, Finance Committee chairman Sen. Terrence "Positive" Nelson said roadwork and other infrastructure projects should be funded through revenues accumulated in the transportation trust fund. Though the fund is specifically designated for these purposes, it has been used over the years to subsidize other expenses such as employee salaries, he added.
Most recently, senators sought to use the transportation trust fund to subsidize road projects such as the proposed Leonardo "Nardo" Trotman Drive on St. Thomas, only to be told that the fund is expected to be $2 million in the red during FY 2007. Several appropriations against the fund are still pending, including a $15 million transfer to the General Fund, explained Debra Gottlieb, director of the Office of Management and Budget, during a Senate hearing in March (See "Transportation Fund Shortfall to Delay Proposed Road Projects.")
Smalls also said the re-activation of the Public Works Acceleration Authority would help in retaining more federal dollars. However, he explained that changes need to be made in the authority's structure, keeping certain functions — such as the floating of bonds — from being duplicated between various other government entities.
Despite the lack of funds, Smalls said the department's FY 2008 budget would still cover a range of other items. Included in the $50.6 million is $28.3 million from the General Fund, $800,000 from the territory's rum revenues to cover capital outlays, $225,000 from the St. John Capital Improvement Fund and about $21.2 million in federal funds.
Out of its General Fund budget, the department would use approximately $11.7 million for employee salaries and corresponding fringe benefits. While Public Works currently has about 73 vacancies, Smalls assured senators that empty slots are being filled as quickly as possible, despite problems caused by the department's low salaries.
A category line-itemed as "other services and charges" also includes $5.5 million for roadside-maintenance projects (things such as road striping and contracts for cleaning crews), $6.4 million for the VITRAN subsidy and $1 million to establish a capital-improvement program.
Supporting testimony given earlier this week by representatives from the Public Finance Authority, Smalls explained that a large portion of the territory's capital-improvement projects would be turned over to Public Works' control. PFA has sought to divest itself from managing the projects, which, as a financing arm of the government, it is often responsible for funding.
An increase in the department's federal funds would also help to purchase new ferry boats, which would bear the VITRAN symbol, Smalls said. This is the first time Public Works has applied for the federal discretionary funds, he added, which will amount to about $4 million for FY 2008.
Though another $1.5 million has previously been earmarked for the purchase of used vessels for franchise ferry companies running the route between St. Thomas and St. John, the money has not yet been released since the companies still have not provided certain financial documentation, Smalls explained after the meeting.
Present during Wednesday's meeting were Sens. Liston Davis, Carlton "Ital" Dowe, Juan Figueroa-Serville, Louis P. Hill, Neville James, Nelson, James Weber III and Carmen M. Wesselhoft.
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