FINANCE OKS GOVERNOR'S $235M BOND ISSUE BILL
It took two tries, but the committee at the end of the day gave the governor what he wanted. It approved the measure 4-1 with only the committee chair, Sen. Adlah "Foncie" Donastorg, in opposition, and sent it to the Rules Committee.
The first motion to approve the bill, made by Sen. Roosevelt David, failed with Sens. Norman Jn Baptiste, Donastorg, Louis Hill and Ronald Russell voting against and David and Sen. Luther Renee voting in favor. However, after continued debate the committee reversed itself on a motion by Russell, with Sens. David, Hill, Renee and Russell in favor, Donastorg opposed and Baptiste off the floor during the vote.
The bill calls for spending $100 million of the bond issue to finance working capital operations, $80 million to develop a 250-room resort on St. Croix, $20 million to finance private economic development initiatives on St. Croix, and $10 million to finance the Carifest theme park on St. Thomas.
With the V.I. government facing a deficit currently estimated by the administration at $152 million for the fiscal year ending Sept. 30, Turnbull's financial officers said, borrowing the money is the best way to get the territory out of the red.
"While we agree that borrowing for working capital purposes is less than ideal and not sustainable in the long run, the alternatives of massive tax increases and/or layoffs of government workers is even less desirable," Nathan Simmonds, director of the Office of Fiscal and Economic Recovery Implementation, said in his testimony.
"In order for us to meet our payroll in the month of June, including today's payroll, we have deferred the payment of income tax refunds and delayed payments to vendors," he said.
"However, we cannot continue to do this, as it only postpones the inevitable by pushing the problem into future months," Simmonds said. "Without a substantial infusion of cash, eventually the cash shortfall will result in payless paydays."
It is important to pay vendors in order to "ensure their continued viability," he said. And payment of more than $50 million owed in tax refunds, he said, would "put money into the economy" and "eliminate costly interest expense."
Senators raised concerns about the bond proposal, many seeking an answer to the question of whether borrowing is the best way to deal with the deficit. Meanwhile, according to a knowledgeable source, federal authorities have discussed the possibility of a financial control board to run the territory's fiscal affairs temporarily.
Sen. Lorraine Berry, a non-committee member who attended Thursday's hearing, made it known this week that she has asked the federal government for technical and financial help setting up such a board. (See "Berry seeks U.S. backing for financial board".)
"The fiscal situation is frightening," David, a staunch supporter of borrowing, said. Referring to the prospect of payless paydays, he added: "I am not going to be Pontius Pilate with blood on my hands."
Sen. Carlton Dowe, another non-member of the Finance Committee, expressed concern that money from a bond issue might only be used to pay bills. "The issue to me is simple: whether we borrow or we don't, and what are the implications if we don't," he said. "I'm willing to borrow; however, it must be tied to some capital development."
Answering senators' questions concerning the 250-room hotel, Kenneth Mapp, Public Finance Authority director of finance and administration, said the government is not going to get into the hotel business but will undertake a "real estate trust investment."
The hotel's physical assets "willl be owned by the people of the Virgin Islands, but the management, training, control and operation of the facility will be driven solely by a nationally recognized brand at four-star, four-diamond rating," Mapp said. "It is through this bill that the governor is making good on his promise to build St. Croix as a true tourist destination, with its own brand identity."
Currently, Mapp said, St. Croix has 430 near-first-class or first-class rooms but only 146 can be marginally considered branded rooms — those of Best Western and the Divi. This, he said, compares to 7,600 first-class room in Jamaica, 5,600 in Puerto Rico, 3,700 in Aruba, 3,500 in the Dominican Republic, 2,100 in St. Lucia, 2,000 on St. Thomas/St. John and 1,500 in St. Martin.
A major chain hotel will attract tourists, Mapp said. "Given the limited number of rooms and the lack of recognizable brands, St. Croix remains at an extreme disadvantage at positioning itself as a viable tourist destination," he said.
During the hearing, no mention was made of the letter sent by all 15 senators on June 3 calling on the governor to rescind the millions of dollars in hefty pay raises he gave hundreds of classified employees last year (See "Cancel executive order pay hikes, Senate says".)
The governor's comeback was an offer to reduce the salaries of those making over $40,000 by 2 percent to 10 percent on a sliding scale for the last six months of this year. The pay raises proposed by the governor last year averaged 24 percent for upper-level personnel and 20 percent for mid-level employees.
Russell asked whether the administration had considered cutting salaries of unionized employees under contract provisions. Simmonds said such a move has been considered but would come about only if the government could not borrow.
Meanwhile, the administration is continuing to put new people on the payroll. Twenty-five individuals have been hired this month alone, according to a Personnel Division report, and more than 390 have been added to the payroll since November. (See "271 executive branch hires in November-April".)
Among the June hires were two groundskeepers for the Education Department and a school crossing guard.
"That's alarming," Donastorg said. "You can't say that the government is broke and turn around and be hiring. You cannot in one breath say one thing and do the other. If there's a hiring freeze, there's a hiring freeze."
Ira Mills, director of the Office of Management and Budget, tried to justify the hirings, saying that many were for the Police, Health and Human Services Departments and were for essential positions. He was not entirely successful.
"The spending levels we have cannot continue," Hill insisted. He said that borrowing is not a long-term solution because the government will just end up in the same situation in the future.
Committee members present were Sens. Baptiste, David, Donastorg, Hill, Renee and Russell. Sen. Shawn-Michael was excused. Non-committee members attending the hearing were Senate President David Jones and Sens. Berry, Dowe, Raymond "Usie" Richards and Celestino White.
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DELEGATE PUSHES HBCU ROLE IN 'PROJECT BIOSHIELD'
In a release, Christensen noted that such inclusive language appears in many other laws.
She and U.S. Rep. Sheila Jackson Lee (D., Texas) offered the amendment to a bill authorizing Project Bioshield, which passed the Committee on Homeland Security Wednesday. Project Bioshield "is a Bush administration initiative to create a marketplace for counter-biological products for use in case the nation is attacked by biological weapons," the release stated.
The measure now moves on for consideration by the full House of Representatives.
The amendment "was rewritten slightly due to objections by some Republican members that the provision constituted a preference," Christensen said. "To have this language which is found throughout other laws objected to caught me by surprise."
The delegate, a member of the Homeland Security Committee, told her colleagues that institutions designated as HBCU's, including the University of the Virgin Islands, are often overlooked in the government's major research projects.
"With endowments and enrollments down at many of these important institutions, getting financial support is becoming more of a problem for HBCU's," she said, but the ability to access research funding could make a difference.
Also on Wednesday, the release stated, Christensen questioned Asa Hutchinson, undersecretary of Homeland Security for border security, about ongoing Transportation Security Administration cutbacks in airport screeners, which have affected workers in the territory. She asked about the possible transfer of personnel within the agency.
And she again asked that a federal Border Patrol unit be established for the Virgin Islands.
"The Coast Guard units in the Virgin Islands are called upon to oversee what may be the busiest cruise ship port in the Caribbean," she said, referring to St. Thomas, "while having to patrol and guard over 175 miles of unprotected open borders which is our country's southernmost border and a gateway to the United States."
She noted that the territory also is home to Hovensa, the largest oil refinery in the Western Hemisphere. Advocating more funding for Customs, the FBI, the TSA and the Coast Guard to adequately protect the islands' critical assets, she invited Hutchinson to pay a visit "to hear first hand the territory's concerns."
The release also said that:
– As a member of the Homeland Security Committee's Subcommittee on Cybersecurity, Science and Research and Development Christensen attended a hearing on what experts feel is needed "to protect the critical infrastructure of cyberspace."
– She recently attended Homeland Security Committee hearings in Los Angeles and Long Beach, California, on the efforts of federal and local agencies to make their ports more secure.
– She was among committee members who met with military officials at the new Northern Command in Colorado.
– She recently invited Michael Brown, Homeland Security undersecretary for emergency preparedness and response. to visit the territory in the near future. V.I. Sen. Lorraine Berry, who chairs the Senate's new Public Safety, Judiciary, Homeland Security and Justice Committee, announced in March that Brown had accepted her invitation to make such a visit April 14-15. In the meantime, however, the United States launched the war against Iraq and Brown's visit was put on hold.
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FIRE IN LONG BAY LOOKED WORSE THAN IT WAS
Although flames could be seen licking the air behind the supermarket at dusk, there was no serious damage to the Value Foods building adjacent to where the blaze started.
According to a Fire Service source, some plastic foam containers were the only losses. There was some minor smoke damage to the Value Foods building, the source said, but no one was injured.
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FREE HIV TESTING OFFERED FRIDAY AND SATURDAY
"The earlier you detect it, the more control you have over it," Lee Vanterpool, Government House spokesman, said.
He noted that HIV — the Human Immunodeficiency Virus, which causes AIDS — is easier to treat if it's detected early on. And, he said, if you don't know if you're infected, you put your sexual partner or partners at risk.
On St. Thomas, testing will be conducted on Friday at the Health Department STD/HIV/TB Clinic at the Old Municipal Hospital from 9 a.m. to 7 p.m. and at the East End Clinic from 8 a.m. to 7 p.m.
On St. Croix, residents have four options, all on Friday: The Frederiksted Health Clinic will conduct testing from 8:30 a.m. to 6 p.m., V.I. Care will do so at its King Street, Christiansted, office from noon to 8 p.m., AARP will do so at the Sunny Isle Shopping Center form 10 a.m. to 4 p.m., and the Health Department Family Planning Office will do so at its Vitraco Mall office from 8:30 to 10:30 a.m.
Vanterpool said testing also will be done on Friday at the Women's Personal Support Network at The Village on St. Croix, but the times were not available.
On St. John, testing will be done on Saturday at Skinny Legs Bar and Restaurant in Coral Bay from 11 a.m. to 2 p.m.
The Health Department and other agencies encourage residents to take advantage of the free HIV testing. The tests will be conducted using oral fluids through the OraSure method. The procedure does not involve drawing blood.
Nationwide, there are an estimated 750,000 people who don't know they are HIV infected. With new advances in treatment, people infected with the virus can live active and productive lives.
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AGENCIES OUTLINE SERVICES, NEEDS FOR YOUTH
Representatives of the Boys and Girls Club and the Labor, Police, Human Services and Housing Parks and Recreation Departments summarized their function within the community and outlined their funding needs at the evening session, which followed an afternoon hearing on the public education system.
Kimberley Causey Gomez of Human Services' Division of Children, Youth and Families said division programs affecting young people include protective care intervention, juvenile justice intervention, residential treatment, delinquency prevention and the federal Head Start program.
Gomez said there are 158 children in foster care under the auspices of the department's protective care unit. And, she said, 47 percent of children in need of foster care are over 13 years old, most coming from low-income families, 71 percent of them single-parent households, with 91 percent having experienced neglect.
Juvenile Justice programs serve pre-delinquents, persons in need of supervision and adjudicated youth, she said. Services include investigation, recommendation to the courts, treatment, and oversight for an alternative sentencing program within the Youth Rehabilitation Center. Currently, she said, 53 youths are receiving pre-delinquent counseling and 252 are receiving services for delinquent behavior. Eighty percent are males, the average arrest age is 15 years and 37 percent have committed a violent crime. However, Gomez pointed out, these youth in trouble represent only about 1 percent of the total population their age.
Within the division's Crisis Stabilization Center, Gomez said, group residential facilities for boys and for girls are funded by Human Services to provide limited treatment for dysfunctional behavior. More than half of the children involved are diagnosed with mental illness, she said. While these children generally require long-term treatment, there are no programs or facilities on island to address their needs separately from the general population of children needing treatment.
Gomez urged the senators, among other things, to increase Human Services funding to provide mental health services for children and youth and to hire competent, innovative teachers for the Youth Rehabilitation Center. Campaigning for funding of $500,000, Kenneth Blake, head of the Police Crime Prevention/Community Relations Bureau, outlined specialized projects including the DARE program, Police Athletic League and the Police Pre-Cadet Corps.
Lauretta Petersen, acting director of the Labor Department's Training Division, asked not for additional funding but for the amount appropriated for this fiscal year. She said that $92,272 was to be allocated from the Youth Transition Employment Fund but to date no funds have been received. She also said $300,000 was appropriated for the V.I. Graduates program, but again, "no funds have been allotted for FY 2003."
The idea of a consolidated Youth Department — approved by the 24th Legislature and then vetoed by the governor — was raised and discussed. Petersen observed that the Labor Department "is already that sort of umbrella organization." For example, she said, it is the department's job to place summer students. But "many organizations have not come to us," she said. "This is why many students have not been placed."
One concern expressed was that such specialized programs as DARE — Drug Abuse Resistance Education — may have no place within a general Youth Department.
The testimony taken at the session is to be compiled into a general information booklet
outlining youth programs within the territory. "It is important that the children have this information," Sen. Luther Renee said, "because in the long run we are saving money by providing youth with programs that will keep them from being incarcerated."
Committee members at the hearing were Sens. Norman Jn Baptiste, Roosevelt David, Louis Hill, Renee, Raymond "Usie" Richards and Russell. Sen. Shawn-Michael Malone was excused.
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TWO TERRITORIES, TWO CRISES, ONE BIG DIFFERENCE
– Both territories were acquired by the United States primarily for their strategic significance at the time — the Virgin Islands 85 years ago and Guam 20 years before that.
– Both currently have populations of 100,000-plus.
– Both rely heavily on tourism (Guam's trade is largely with Japan).
– Neither does much in the way of manufacturing, farming or commercial fishing.
– Both have overstaffed governments, and both are in financial jams.
But there are differences.
First, Guam's unicameral legislature has just voted 12-2 for legislation requested by Gov. Felix Camacho that would permit Guam to try to borrow the $246 million, while the V.I. Senate has been opposed to a bond issue.
Second, Guam's governor says that, so far this year, he has arranged for "more than 700 people voluntarily leaving government service," according to the Pacific Daily News. Some of them haven't actually left their jobs yet, but the breakdown of how they are being separated shows that the governor of Guam is really trying to shrink his public work force.
While the details from this distance are scarce, and some of the employee-separation strategies may be expensive, Camacho has told the Pacific Daily News that four different sets of departures are completed or expected:
– 370 people have left the government service. (This category probably includes a number of patronage employees fired when Camacho, a Republican, replaced his Democratic predecessor in January.)
– 34 have already retired.
– 52 have been moved from locally funded to federally funded positions.
– 250 are waiting to retire once bond financing is finalized. (Bond proceeds presumably will include some exit payments for this group.)
In addition:
– 400 workers are apparently due to be laid off as some government activities are privatized. Many of the affected employees are expected to go to work for the private-sector providers of what were previously government services. (It is not clear that this represents a real savings.)
– 200 territorial government positions remain vacant.
Guam's governor has promised to cut spending by $40 million this year — and by another $100 million next year.
Meanwhile, speaking of reducing the government payroll, it is likely that neither island government has followed a frankly devious layoff strategy that I proposed while working at the U.S. Department of the Interior a few years ago. It is based on an obscure federal program, the differential funding of unemployment benefits for laid-off government workers.
The feds pick up all the unemployment benefits for workers whose jobs they fund, while the territories pay for the benefits for their own ex-employees. Meanwhile, the territorial unemployment compensation trust funds relate to private-sector workers.
So why not begin the inevitable layoffs in the two island governments with federally funded workers, and then replace them with people transferred from locally funded positions? The individual federal agencies (Labor, Health and Human Services, etc.) would then be obliged to pay the unemployment benefits for the laid-off workers as well as the salaries of those hired to replace the prior workers.
The feds might object, of course. But, on the other hand, they might accept it as a back-handed way of getting a little federal money to the islands without calling it a bail-out and without needing to go through the congressional budgetary process. (Funds for compensating laid-off federally funded workers already are in the budget.)
There is a useful precedent. The Defense Department plans to lease a fleet of aerial tankers (for in-flight refueling) from Boeing rather than buy them. A columnist in The Washington Post of June 26 suggested that this is a smoke screen for a subsidy to Boeing, a major firm that has fallen on hard times recently.
Why not smaller, similar devious federal subsidies for the Virgin Islands and Guam?
Editor's note: David S. North, a semi-retired former federal employee living in the Washington, D.C., area, reports and writes frequently for the Source on government affairs and economics.
We welcome and encourage readers to keep the dialogue going by responding to Source commentary. Letters should be e-mailed with name and place of residence to source@viaccess.net.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
TWO TERRITORIES, TWO CRISES, ONE BIG DIFFERENCE
– Both territories were acquired by the United States primarily for their strategic significance at the time — the Virgin Islands 85 years ago and Guam 20 years before that.
– Both currently have populations of 100,000-plus.
– Both rely heavily on tourism (Guam's trade is largely with Japan).
– Neither does much in the way of manufacturing, farming or commercial fishing.
– Both have overstaffed governments, and both are in financial jams.
But there are differences.
First, Guam's unicameral legislature has just voted 12-2 for legislation requested by Gov. Felix Camacho that would permit Guam to try to borrow the $246 million, while the V.I. Senate has been opposed to a bond issue.
Second, Guam's governor says that, so far this year, he has arranged for "more than 700 people voluntarily leaving government service," according to the Pacific Daily News. Some of them haven't actually left their jobs yet, but the breakdown of how they are being separated shows that the governor of Guam is really trying to shrink his public work force.
While the details from this distance are scarce, and some of the employee-separation strategies may be expensive, Camacho has told the Pacific Daily News that four different sets of departures are completed or expected:
– 370 people have left the government service. (This category probably includes a number of patronage employees fired when Camacho, a Republican, replaced his Democratic predecessor in January.)
– 34 have already retired.
– 52 have been moved from locally funded to federally funded positions.
– 250 are waiting to retire once bond financing is finalized. (Bond proceeds presumably will include some exit payments for this group.)
In addition:
– 400 workers are apparently due to be laid off as some government activities are privatized. Many of the affected employees are expected to go to work for the private-sector providers of what were previously government services. (It is not clear that this represents a real savings.)
– 200 territorial government positions remain vacant.
Guam's governor has promised to cut spending by $40 million this year — and by another $100 million next year.
Meanwhile, speaking of reducing the government payroll, it is likely that neither island government has followed a frankly devious layoff strategy that I proposed while working at the U.S. Department of the Interior a few years ago. It is based on an obscure federal program, the differential funding of unemployment benefits for laid-off government workers.
The feds pick up all the unemployment benefits for workers whose jobs they fund, while the territories pay for the benefits for their own ex-employees. Meanwhile, the territorial unemployment compensation trust funds relate to private-sector workers.
So why not begin the inevitable layoffs in the two island governments with federally funded workers, and then replace them with people transferred from locally funded positions? The individual federal agencies (Labor, Health and Human Services, etc.) would then be obliged to pay the unemployment benefits for the laid-off workers as well as the salaries of those hired to replace the prior workers.
The feds might object, of course. But, on the other hand, they might accept it as a back-handed way of getting a little federal money to the islands without calling it a bail-out and without needing to go through the congressional budgetary process. (Funds for compensating laid-off federally funded workers already are in the budget.)
There is a useful precedent. The Defense Department plans to lease a fleet of aerial tankers (for in-flight refueling) from Boeing rather than buy them. A columnist in The Washington Post of June 26 suggested that this is a smoke screen for a subsidy to Boeing, a major firm that has fallen on hard times recently.
Why not smaller, similar devious federal subsidies for the Virgin Islands and Guam?
Editor's note: David S. North, a semi-retired former federal employee living in the Washington, D.C., area, reports and writes frequently for the Source on government affairs and economics.
We welcome and encourage readers to keep the dialogue going by responding to Source commentary. Letters should be e-mailed with name and place of residence to source@viaccess.net.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
UVI BULLETIN BOARD
UVI Featured in Spring 2003 Issue of Black Voices Quarterly
The University of the Virgin Islands is in the "Campus Spotlight" of the Spring 2003 issue of Black Voices Quarterly magazine. A dramatic shot of the St. Croix campus opens the two-page, color spread.
In interviews with President LaVerne Ragster and other administrators, the University's unique location, various academic programs, exchange opportunities and sports facilities are featured. The issue also includes UVI students Bonnie Braga, Ranan Mustafa, Michael Lake and Paula Gumbs in its list of the "100+ Top Students" from the nation's black colleges. Congratulations to all. More about Black Voices Quarterly is available on line at www.BlackVoices.com.
UVI Board of Trustees Welcomes New Members
The UVI Board of Trustees welcomed several new members who will serve during the 2003-2004 term at the June 21 meeting on St. Croix. The new faculty trustee is Dr. Eustace Esdaille, chair of the business division on the St. Thomas campus. Andrea Keddo, a senior business administration major on the St. Thomas campus, is the new student trustee.
Also, by virtue of his position as acting chair of the Virgin Islands Board of Education, Harry Daniel is serving on the Board of Trustees.
In other action at the June meeting, the Trustees selected Dr. Auguste E. Rimpel Jr. to serve another term as board chair. Alexander Moorhead of St. Croix was selected to serve as the vice chair.
UVI to Observe Emancipation Day, Independence Day
The University of the Virgin Islands will be closed next Thursday and Friday, July 3 and 4, in observance of Virgin Islands Emancipation Day and U.S. Independence Day, respectively. University offices will reopen and summer session classes will resume on Monday, July 7.
UVI to Offer On-line Fall Semester Registration to Continuing Students
UVI is planning to offer on-line registration for the 2003 fall semester to all continuing students. The dates when on-line registration becomes available will be announced in the near future.
St. Croix Golden Key Honor Society Plans General Meeting on July 11
A general meeting of the St. Croix Chapter of the UVI Golden Key International Honor Society is scheduled for 5:30 to 7 p.m. Friday, July 11, at the Associate Chancellor's conference room on the second floor of the Great House on UVI's St. Croix Campus. All members of the Golden Key Honor Society are invited to attend. For more information call 713-9743.
High School, UVI Students Sought for Peer Health Education Workshop
A Peer Health Education Workshop in teen pregnancy and HIV/AIDS prevention will be offered to Virgin Islands high school students and interested UVI students from July 14 through 18 on UVI's St. Croix campus. Positions are available for 25 students from St. Croix and St. Thomas. Participants must agree to share their information in at least four presentations within the Virgin Islands during the next year. Housing and meals – as well as transportation for St. Thomas students – will be provided at no charge.
Interested students should sign up for screening interviews no later than Friday, June 27.
The workshop is sponsored by the V.I. Health Department Office of Family Planning in conjunction with the UVI Health Services Department. To register contact Nurse Justa Encarnicon on St. Croix at 692-4214 (e-mail: tthomp@uvi.edu) or Nurse Diane Ruan-Viville on St. Thomas at 693-1124 (e-mail: dbonell@uvi.edu).
St. Croix's Mango Melee Scheduled for July 6
The St. Croix Mango Melee and Tropical Fruit Festival is scheduled for noon to 6:30 p.m. July 6 at the St. George Village Botanical Garden. Admission is $4 for adults and $2 for children ages 5-12. Children five years old and younger are admitted free when accompanied by an adult. Food, music, a farmers' market, mango eating competition, ice cream making, garden tours, craft vendors, workshops and more are planned. For more information call 692-2874 or 292-4060.
The festival is sponsored by the St. George Village Botanical Garden, UVI's Cooperative Extension Service, Agricultural Experiment Station, the V.I. Agriculture Department and the V.I. Tourism Department.
SBDC Offers Microsoft Access Workshop on July 9
UVI's Small Business Development Center will conduct an "Introduction to Microsoft Access" workshop from 5:45 to 8 p.m. Wednesday, July 9, at the UVI-SBDC Training Center located in the Sunshine Mall lower level, St. Croix. Admission is $20. A $5 discount is available to individuals who register and pay by Monday, July 7.
UVI faculty, staff and students are admitted free but they must pre-register. For more information and to pre-register, call UVI-SBDC at 692-5270.
For more on the University of the Virgin Islands, visit the website at www.uvi.edu.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
TWO TERRITORIES, TWO CRISES, ONE BIG DIFFERENCE
– Both territories were acquired by the United States primarily for their strategic significance at the time — the Virgin Islands 85 years ago and Guam 20 years before that.
– Both currently have populations of 100,000-plus.
– Both rely heavily on tourism (Guam's trade is largely with Japan).
– Neither does much in the way of manufacturing, farming or commercial fishing.
– Both have overstaffed governments, and both are in financial jams.
But there are differences.
First, Guam's unicameral legislature has just voted 12-2 for legislation requested by Gov. Felix Camacho that would permit Guam to try to borrow the $246 million, while the V.I. Senate has been opposed to a bond issue.
Second, Guam's governor says that, so far this year, he has arranged for "more than 700 people voluntarily leaving government service," according to the Pacific Daily News. Some of them haven't actually left their jobs yet, but the breakdown of how they are being separated shows that the governor of Guam is really trying to shrink his public work force.
While the details from this distance are scarce, and some of the employee-separation strategies may be expensive, Camacho has told the Pacific Daily News that four different sets of departures are completed or expected:
– 370 people have left the government service. (This category probably includes a number of patronage employees fired when Camacho, a Republican, replaced his Democratic predecessor in January.)
– 34 have already retired.
– 52 have been moved from locally funded to federally funded positions.
– 250 are waiting to retire once bond financing is finalized. (Bond proceeds presumably will include some exit payments for this group.)
In addition:
– 400 workers are apparently due to be laid off as some government activities are privatized. Many of the affected employees are expected to go to work for the private-sector providers of what were previously government services. (It is not clear that this represents a real savings.)
– 200 territorial government positions remain vacant.
Guam's governor has promised to cut spending by $40 million this year — and by another $100 million next year.
Meanwhile, speaking of reducing the government payroll, it is likely that neither island government has followed a frankly devious layoff strategy that I proposed while working at the U.S. Department of the Interior a few years ago. It is based on an obscure federal program, the differential funding of unemployment benefits for laid-off government workers.
The feds pick up all the unemployment benefits for workers whose jobs they fund, while the territories pay for the benefits for their own ex-employees. Meanwhile, the territorial unemployment compensation trust funds relate to private-sector workers.
So why not begin the inevitable layoffs in the two island governments with federally funded workers, and then replace them with people transferred from locally funded positions? The individual federal agencies (Labor, Health and Human Services, etc.) would then be obliged to pay the unemployment benefits for the laid-off workers as well as the salaries of those hired to replace the prior workers.
The feds might object, of course. But, on the other hand, they might accept it as a back-handed way of getting a little federal money to the islands without calling it a bail-out and without needing to go through the congressional budgetary process. (Funds for compensating laid-off federally funded workers already are in the budget.)
There is a useful precedent. The Defense Department plans to lease a fleet of aerial tankers (for in-flight refueling) from Boeing rather than buy them. A columnist in The Washington Post of June 26 suggested that this is a smoke screen for a subsidy to Boeing, a major firm that has fallen on hard times recently.
Why not smaller, similar devious federal subsidies for the Virgin Islands and Guam?
Editor's note: David S. North, a semi-retired former federal employee living in the Washington, D.C., area, reports and writes frequently for the Source on government affairs and economics.
We welcome and encourage readers to keep the dialogue going by responding to Source commentary. Letters should be e-mailed with name and place of residence to source@viaccess.net.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
UVI BULLETIN BOARD
UVI Featured in Spring 2003 Issue of Black Voices Quarterly
The University of the Virgin Islands is in the "Campus Spotlight" of the Spring 2003 issue of Black Voices Quarterly magazine. A dramatic shot of the St. Croix campus opens the two-page, color spread.
In interviews with President LaVerne Ragster and other administrators, the University's unique location, various academic programs, exchange opportunities and sports facilities are featured. The issue also includes UVI students Bonnie Braga, Ranan Mustafa, Michael Lake and Paula Gumbs in its list of the "100+ Top Students" from the nation's black colleges. Congratulations to all. More about Black Voices Quarterly is available on line at www.BlackVoices.com.
UVI Board of Trustees Welcomes New Members
The UVI Board of Trustees welcomed several new members who will serve during the 2003-2004 term at the June 21 meeting on St. Croix. The new faculty trustee is Dr. Eustace Esdaille, chair of the business division on the St. Thomas campus. Andrea Keddo, a senior business administration major on the St. Thomas campus, is the new student trustee.
Also, by virtue of his position as acting chair of the Virgin Islands Board of Education, Harry Daniel is serving on the Board of Trustees.
In other action at the June meeting, the Trustees selected Dr. Auguste E. Rimpel Jr. to serve another term as board chair. Alexander Moorhead of St. Croix was selected to serve as the vice chair.
UVI to Observe Emancipation Day, Independence Day
The University of the Virgin Islands will be closed next Thursday and Friday, July 3 and 4, in observance of Virgin Islands Emancipation Day and U.S. Independence Day, respectively. University offices will reopen and summer session classes will resume on Monday, July 7.
UVI to Offer On-line Fall Semester Registration to Continuing Students
UVI is planning to offer on-line registration for the 2003 fall semester to all continuing students. The dates when on-line registration becomes available will be announced in the near future.
St. Croix Golden Key Honor Society Plans General Meeting on July 11
A general meeting of the St. Croix Chapter of the UVI Golden Key International Honor Society is scheduled for 5:30 to 7 p.m. Friday, July 11, at the Associate Chancellor's conference room on the second floor of the Great House on UVI's St. Croix Campus. All members of the Golden Key Honor Society are invited to attend. For more information call 713-9743.
High School, UVI Students Sought for Peer Health Education Workshop
A Peer Health Education Workshop in teen pregnancy and HIV/AIDS prevention will be offered to Virgin Islands high school students and interested UVI students from July 14 through 18 on UVI's St. Croix campus. Positions are available for 25 students from St. Croix and St. Thomas. Participants must agree to share their information in at least four presentations within the Virgin Islands during the next year. Housing and meals – as well as transportation for St. Thomas students – will be provided at no charge.
Interested students should sign up for screening interviews no later than Friday, June 27.
The workshop is sponsored by the V.I. Health Department Office of Family Planning in conjunction with the UVI Health Services Department. To register contact Nurse Justa Encarnicon on St. Croix at 692-4214 (e-mail: tthomp@uvi.edu) or Nurse Diane Ruan-Viville on St. Thomas at 693-1124 (e-mail: dbonell@uvi.edu).
St. Croix's Mango Melee Scheduled for July 6
The St. Croix Mango Melee and Tropical Fruit Festival is scheduled for noon to 6:30 p.m. July 6 at the St. George Village Botanical Garden. Admission is $4 for adults and $2 for children ages 5-12. Children five years old and younger are admitted free when accompanied by an adult. Food, music, a farmers' market, mango eating competition, ice cream making, garden tours, craft vendors, workshops and more are planned. For more information call 692-2874 or 292-4060.
The festival is sponsored by the St. George Village Botanical Garden, UVI's Cooperative Extension Service, Agricultural Experiment Station, the V.I. Agriculture Department and the V.I. Tourism Department.
SBDC Offers Microsoft Access Workshop on July 9
UVI's Small Business Development Center will conduct an "Introduction to Microsoft Access" workshop from 5:45 to 8 p.m. Wednesday, July 9, at the UVI-SBDC Training Center located in the Sunshine Mall lower level, St. Croix. Admission is $20. A $5 discount is available to individuals who register and pay by Monday, July 7.
UVI faculty, staff and students are admitted free but they must pre-register. For more information and to pre-register, call UVI-SBDC at 692-5270.
For more on the University of the Virgin Islands, visit the website at www.uvi.edu.
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