V.I. Labor Commissioner Gary Molloy detailed his department’s proposed $20.1 million fiscal year 2025 budget Thursday, emphasizing to senators its critical role in supporting workforce development and maintaining labor standards.
“Our proposed budget reflects the necessary allocations to achieve our goals while navigating funding challenges,” stated Molloy during a Committee on Finance, Budget and Appropriations meeting. The budget includes a General Fund appropriation of $13,637,468, supplemented by $6,316,058 from federal grants and $191,722 from penalties and interest.
Key budget allocations are $4,441,246 for personnel services, $4,408,343 for fringe benefits, $472,902 for supplies, $4,074,146 for other services, and $240,831 for utilities. VIDOL employs 109 individuals, with union representation from the Seafarers International Union of North America and United Steelworkers unions. “Our team is composed of dedicated professionals committed to supporting the Virgin Islands’ workforce,” Molloy said.
Federal grants play a vital role, with $6,316,058 earmarked for initiatives like the Workforce Innovation Opportunity Act, Unemployment Insurance Grant, and Occupational Safety and Health Administration Grant. “Federal grants are critical in providing the resources necessary to fund our programs and services,” emphasized Molloy.
The Workforce Development Division focuses on target industries using local and federal funds, he explained. Key programs include the Summer Youth Work Experience Program and Youth Employment and Apprenticeship Programs, supporting over 800 youth annually. “Our efforts aim to ensure that more job seekers find meaningful employment through our services,” Molloy said, adding that in program year 2023, VIDOL held 18 hiring events resulting in 92 hires. For the quarter ending March 31, 2024, 60 percent of customers served secured employment, demonstrating the effectiveness of these initiatives, Molloy shared.
The Unemployment Insurance division, holding $35,659,022.81 in the Virgin Islands Trust Fund, faces an $80,193,938.21 debt. The new tax structure affects 4,481 employers, with rates from 2.51 percent to 5.4 percent. Sen. Donna Frett-Gregory emphasized the importance of efficiently utilizing federal grants.
Assistant Commissioner Nisha Christian Hendrickson highlighted fraud prevention measures, stating, “We have a robust system in place to verify the identity of claimants and prevent fraud.”
The Labor Relations Division investigated 111 charges, collected $8,009.70 in old wages, conducted 173 compliance visits, and issued 173 child labor certificates in FY 2024. “Our labor relations efforts are critical in ensuring fair treatment and protecting the rights of our workforce,” Molloy said.
The Workers’ Compensation program processed 439 claims, paying out $572,087.38 in disability payments and $1,265,059.37 to providers. “Workers’ compensation ensures timely access to medical coverage and rehabilitation services for injured workers,” Molloy said.
VIDOL’s Division of Occupational Safety and Health completed 34 inspections and nine consultation visits, eliminating a backlog dating to 2022. “Our commitment to workplace safety is reflected in the rigorous training and inspections conducted by VIDOSH,” noted Molloy.
VIDOL’s administrative backbone includes the Office of the Commissioner, Legal Counsel, and several other divisions. In FY 2024, 53 wrongful discharge hearings and 44 unemployment insurance appeals were conducted. “Our administrative services ensure we can effectively manage our resources and provide timely support to our clients,” emphasized Molloy.
Challenges include optimizing federal fund utilization and ensuring compliance with guidelines. VIDOL focuses on digital transformation and cybersecurity, aiming to move towards a cloud-based environment and reduce paper usage. “Modernizing our systems and improving cybersecurity are critical in enhancing our service delivery,” added Molloy.
VIDOL’s strategic initiatives aim to bolster workforce development and ensure compliance with labor standards. “The FY 2025 budget and operational plans reflect our comprehensive approach to addressing the workforce needs of the Virgin Islands,” Molloy said.
Committee chair Sen. Donna Frett-Gregory stressed, “Efficient utilization of federal grants is crucial to ensure the continuation of essential programs.”
