COMPROMISES NEEDED IN ADDRESSING CRISIS

0
June 18, 2003 – Following is a copy of a letter delivered to the office of Senate President David Jones on the morning of June 17:
Dear Senator Jones:
The entire Virgin Islands community watches anxiously as the very serious and important numbers game, also referred to as reducing the deficit, is played.
Many persons and organizations, including the league, have offered recommendations for short- and long-term solutions to our financial situation. The minority bloc of the Legislature has suggested a 25-point plan to date. The executive branch has put forward its plan for financial recovery, much of which has been rejected or put on hold by the Legislature's Finance Committee to date.
In the interim, as the crisis escalates, compounded by the delay in addressing it and outside factors such as the federal tax reduction act, piecemeal efforts are being made, most notably the proportionate rollback in salaries for those in the exempt service. But it is time for serious action to fully address this fiscal crisis and engage long-term solutions.
Our decision makers can no longer play one interest group against the other or pander to selfish interests. We're all in this boat together, and we must all make sacrifices in order to right this ship. No suggestion or recommendation can be rejected out of hand; compromises must be sought wherever possible. If a $5-a-day tax on rental cars is considered excessive, what about a lesser rate? If amendments to, or repeal of, Act 4440 is politically untenable, what about a moratorium or suspension of this statute until we are set on a sound financial course?
Will the Legislature address the negative effects of unfunded federal mandates that have now grown to an additional estimated cost of $8 million per year? What revenue enhancement measures will be forthcoming, especially if the decision is made to incur further debt by borrowing to meet operating costs?
We need a realistic and comprehensive plan. A little bit here and a little bit there is all well and good, and the league agrees that "one, one fill basket." But we need a comprehensive plan that encompasses expenditure reductions and short- and long-term revenue streams. Just as important, we need an honestly balanced budget for Fiscal Year 2004.
The League of Women Voters has played the role of Cassandra foretelling this elevated fiscal crisis for far too many years. We once again remind the Legislature and the executive branch that this very large territorial burden can be removed, and removed with pride, only when they have walked tall and straightforward with a realistic and honest plan.
Rosalie Simmonds Ballentine, President
League of Women Voters of the Virgin Islands
St. Thomas

Editor's note: 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.

COMPROMISES NEEDED IN ADDRESSING CRISIS

0
June 18, 2003 – Following is a copy of a letter delivered to the office of Senate President David Jones on the morning of June 17:
Dear Senator Jones:
The entire Virgin Islands community watches anxiously as the very serious and important numbers game, also referred to as reducing the deficit, is played.
Many persons and organizations, including the league, have offered recommendations for short- and long-term solutions to our financial situation. The minority bloc of the Legislature has suggested a 25-point plan to date. The executive branch has put forward its plan for financial recovery, much of which has been rejected or put on hold by the Legislature's Finance Committee to date.
In the interim, as the crisis escalates, compounded by the delay in addressing it and outside factors such as the federal tax reduction act, piecemeal efforts are being made, most notably the proportionate rollback in salaries for those in the exempt service. But it is time for serious action to fully address this fiscal crisis and engage long-term solutions.
Our decision makers can no longer play one interest group against the other or pander to selfish interests. We're all in this boat together, and we must all make sacrifices in order to right this ship. No suggestion or recommendation can be rejected out of hand; compromises must be sought wherever possible. If a $5-a-day tax on rental cars is considered excessive, what about a lesser rate? If amendments to, or repeal of, Act 4440 is politically untenable, what about a moratorium or suspension of this statute until we are set on a sound financial course?
Will the Legislature address the negative effects of unfunded federal mandates that have now grown to an additional estimated cost of $8 million per year? What revenue enhancement measures will be forthcoming, especially if the decision is made to incur further debt by borrowing to meet operating costs?
We need a realistic and comprehensive plan. A little bit here and a little bit there is all well and good, and the league agrees that "one, one fill basket." But we need a comprehensive plan that encompasses expenditure reductions and short- and long-term revenue streams. Just as important, we need an honestly balanced budget for Fiscal Year 2004.
The League of Women Voters has played the role of Cassandra foretelling this elevated fiscal crisis for far too many years. We once again remind the Legislature and the executive branch that this very large territorial burden can be removed, and removed with pride, only when they have walked tall and straightforward with a realistic and honest plan.
Rosalie Simmonds Ballentine, President
League of Women Voters of the Virgin Islands
St. Thomas

Editor's note: 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.

ST. CROIX KILLING LINKED TO APRIL DRUG BUST

0
June 17, 2003- Federal authorities say evidence found in a car on St. Croix has led to what may be a major breakthrough in the investigation of the June 8 shooting death of Hector Luis Rivera. It also links the homicide to what U.S. Attorney David Nissman called one of the most "prolific" cocaine busts in Virgin Islands history.
In an affidavit in support of a search warrant filed in District Court on Friday and obtained by WVWI Radio on Tuesday, FBI special agent Robert F. Lasky said Rivera's death may have been the "payback" for his involvement as an informant in high-profile drug and money-laundering bust that took place in April. (See "Investigation nets eight arrests, $1 million".)
Rivera was shot more than a dozen times with high-powered rifles as he drove his girlfriend to her home; she also was critically wounded. According to the affidavit, Rivera had been identified by Craig Hendricks, whom it identified as the drug cartel ringleader, as one of the informants in the case. The affidavit says, in fact, that Hendricks, a St. Thomas business owner, had identified all of the informants.
Hendricks had told his own mother, according to Lasky's affidavit, that he would "pay back" Rivera, and that "what goes around, comes around twice."
Another St. Thomas man placed on St. Croix the day that Rivera was gunned down in the ambush-style shooting has been questioned by Lasky in the investigation.
The man, Cedric Rouse, is alleged to be a close friend and associate of Russell Robinson, a pilot and alleged co-conspirator arrested in the April raids.
Rouse was questioned by Lasky on June 13 in connection with reports by several witnesses of a reddish-brown car fleeing the Rivera shooting scene on Sunday, June 8. That fit the description of a 1994 Volvo 850 sedan belonging to the mother of Rouse's child.
Rouse made two trips to St. Croix over the weekend of June 6 – on Friday, returning to St. Thomas on Saturday, and again on Sunday, returning to St. Thomas on Monday. The first trip, Rouse told Lasky, was to attend his daughter's graduation. There was no explanation in the affidavit for the second trip.
During both visits, Rouse stayed with his child's mother and used her car, it said. Investigators found three pieces of broken glass in the car that appeared to be from a vehicle other than the Volvo itself. The owner, when questioned, said Rouse "had used her vehicle to leave the house for food and other reasons during both visits," the affidavit stated. She also said her car had not been broken into, nor had it ever had a broken window. She told investigators she did not know where the glass came from.
Although a search warrant has been issued, Rouse was not in custody, nor had he been charged in the Rivera case as of Tuesday night.

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.

ST. CROIX KILLING LINKED TO APRIL DRUG BUST

0
June 17, 2003- Federal authorities say evidence found in a car on St. Croix has led to what may be a major breakthrough in the investigation of the June 8 shooting death of Hector Luis Rivera. It also links the homicide to what U.S. Attorney David Nissman called one of the most "prolific" cocaine busts in Virgin Islands history.
In an affidavit in support of a search warrant filed in District Court on Friday and obtained by WVWI Radio on Tuesday, FBI special agent Robert F. Lasky said Rivera's death may have been the "payback" for his involvement as an informant in high-profile drug and money-laundering bust that took place in April. (See "Investigation nets eight arrests, $1 million".)
Rivera was shot more than a dozen times with high-powered rifles as he drove his girlfriend to her home; she also was critically wounded. According to the affidavit, Rivera had been identified by Craig Hendricks, whom it identified as the drug cartel ringleader, as one of the informants in the case. The affidavit says, in fact, that Hendricks, a St. Thomas business owner, had identified all of the informants.
Hendricks had told his own mother, according to Lasky's affidavit, that he would "pay back" Rivera, and that "what goes around, comes around twice."
Another St. Thomas man placed on St. Croix the day that Rivera was gunned down in the ambush-style shooting has been questioned by Lasky in the investigation.
The man, Cedric Rouse, is alleged to be a close friend and associate of Russell Robinson, a pilot and alleged co-conspirator arrested in the April raids.
Rouse was questioned by Lasky on June 13 in connection with reports by several witnesses of a reddish-brown car fleeing the Rivera shooting scene on Sunday, June 8. That fit the description of a 1994 Volvo 850 sedan belonging to the mother of Rouse's child.
Rouse made two trips to St. Croix over the weekend of June 6 – on Friday, returning to St. Thomas on Saturday, and again on Sunday, returning to St. Thomas on Monday. The first trip, Rouse told Lasky, was to attend his daughter's graduation. There was no explanation in the affidavit for the second trip.
During both visits, Rouse stayed with his child's mother and used her car, it said. Investigators found three pieces of broken glass in the car that appeared to be from a vehicle other than the Volvo itself. The owner, when questioned, said Rouse "had used her vehicle to leave the house for food and other reasons during both visits," the affidavit stated. She also said her car had not been broken into, nor had it ever had a broken window. She told investigators she did not know where the glass came from.
Although a search warrant has been issued, Rouse was not in custody, nor had he been charged in the Rivera case as of Tuesday night.

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.

ST. CROIX KILLING LINKED TO APRIL DRUG BUST

0
June 17, 2003- Federal authorities say evidence found in a car on St. Croix has led to what may be a major breakthrough in the investigation of the June 8 shooting death of Hector Luis Rivera. It also links the homicide to what U.S. Attorney David Nissman called one of the most "prolific" cocaine busts in Virgin Islands history.
In an affidavit in support of a search warrant filed in District Court on Friday and obtained by WVWI Radio on Tuesday, FBI special agent Robert F. Lasky said Rivera's death may have been the "payback" for his involvement as an informant in high-profile drug and money-laundering bust that took place in April. (See "Investigation nets eight arrests, $1 million".)
Rivera was shot more than a dozen times with high-powered rifles as he drove his girlfriend to her home; she also was critically wounded. According to the affidavit, Rivera had been identified by Craig Hendricks, whom it identified as the drug cartel ringleader, as one of the informants in the case. The affidavit says, in fact, that Hendricks, a St. Thomas business owner, had identified all of the informants.
Hendricks had told his own mother, according to Lasky's affidavit, that he would "pay back" Rivera, and that "what goes around, comes around twice."
Another St. Thomas man placed on St. Croix the day that Rivera was gunned down in the ambush-style shooting has been questioned by Lasky in the investigation.
The man, Cedric Rouse, is alleged to be a close friend and associate of Russell Robinson, a pilot and alleged co-conspirator arrested in the April raids.
Rouse was questioned by Lasky on June 13 in connection with reports by several witnesses of a reddish-brown car fleeing the Rivera shooting scene on Sunday, June 8. That fit the description of a 1994 Volvo 850 sedan belonging to the mother of Rouse's child.
Rouse made two trips to St. Croix over the weekend of June 6 – on Friday, returning to St. Thomas on Saturday, and again on Sunday, returning to St. Thomas on Monday. The first trip, Rouse told Lasky, was to attend his daughter's graduation. There was no explanation in the affidavit for the second trip.
During both visits, Rouse stayed with his child's mother and used her car, it said. Investigators found three pieces of broken glass in the car that appeared to be from a vehicle other than the Volvo itself. The owner, when questioned, said Rouse "had used her vehicle to leave the house for food and other reasons during both visits," the affidavit stated. She also said her car had not been broken into, nor had it ever had a broken window. She told investigators she did not know where the glass came from.
Although a search warrant has been issued, Rouse was not in custody, nor had he been charged in the Rivera case as of Tuesday night.

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.

SENATE'S FISCAL CRISIS PLAN REMAINS TO BE SEEN

0
June 17, 2003 – If the Senate has a comprehensive plan to meet the territory's fiscal crisis, it was not evident by 8 p.m. Tuesday, when the day's full session was adjourned until 9 a.m. Wednesday after the lawmakers approved two bills, one amendment and four nominations.
Senators say the whole plan will fall in to place Wednesday after the remaining five bills and two resolutions have been acted upon. Sens. Louis Hill and Shawn-Michael Malone said after Tuesday's session that "the gap will be closed."
Both said they do not approve of any borrowing at this time. "I support borrowing for proper purposes, capital improvements, but not to pay bills," Hill said. But he also said that the looming fourth-quarter (July-September) deficit for Fiscal Year 2003 will be resolved in the Senate's proposals.
Senate President David Jones said the 25th Legislature has "a workable compromise to ease the stress in the General Fund, and in the coming months we will put policies in place to make sure we don't return to this situation."
According to Jones, the Legislature has produced a plan that "reduces spending, increases revenues, provides a mechanism for financing and makes sure the medicine applied will not kill the patient."
Just what that mechanism is remains to be seen. Members of the Legislature and the administration held closed-door meetings last week seeking to resolve differences and come up with a plan acceptable to both branches of government for addressing the fiscal crisis. Little information on what was discussed was forthcoming from any of the participants. (See "2nd Senate-administration session is Wednesday".)
Although Jones commended his colleagues for "sticking together and weaving a tapestry resulting in measure to address the fiscal challenges," little "sticking together" was apparent Tuesday.
The Senate recently patted itself on the back for "working together in unity" when all 15 legislators signed a letter to Gov. Charles W. Turnbull asking him to rescind last year's hefty pay increases to exempt government employees. They made his doing a condition of their taking up the governor's bill calling for a $235 million bond issue to deal with the territory's financial woes.
On Tuesday, things were back to normal, with votes being decided on a majority/minority basis. The heretofore refreshingly amicable atmosphere in the 25th Legislature appeared to have come to an abrupt halt, as senators directed barbs at one another.
Minority pay-cut proposals rejected
The minority bloc tried unsuccessfully first to lower senators' salaries by 10 percent and then to reduce the salaries of all senators, Territorial Court judges, the governor and the lieutenant governor by 10 percent.
The first was on a motion by Sen. Norman Jn Baptiste which was contested by Sen. Emmett Hansen II, who said senators cannot act on measures affecting their salary while in term. Jn Baptiste said it was legal if all members voluntarily approved the measure. Hansen asked legal counsel Yvonne Tharpes to give an opinion; however, she did not.
The two proposals received identical 5-9 votes. Approving them were Sens. Baptiste, Adlah "Foncie" Donastorg, Carlton Dowe, Almando "Rocky" Liburd and Celestino A. White Sr. Voting against them were Sens. Lorraine Berry, Douglas Canton, Roosevelt David, Hansen, Hill, Jones, Malone, Luther Renee and Ronald Russell.
Donastorg again brought up his measure to reduce the Senate size to nine members from the current 15; and it again failed, this time on a 6-8 vote. Voting in favor were Sens. Baptiste, Berry, David, Donastorg, Hill and White. Voring against were Sens. Canton, Dowe, Hansen, Jones, Liburd, Malone, Renee and Russell.
The Senate actually lowered one of the governor's proposals for increasing the portion of employee contributions to health insurance premiums. The governor had proposed a 60/40 government/employee formula; the Senate made it 65/35, which Jones said would "ease the burden on the General Fund, and not overly burden the employees." Currently, the ratio is 73/27.
Hill was incensed by the amount of money the government spends on health insurance. "We spend 10 percent of the budget — $68 million," he said. "When are we going to question why? It's unreasonable."
It's Hill's belief that the legislation mandating the insurance, passed by the 22nd Legislature in 1998, must be amended. He said the legislation was modeled after similar law in Washington, D.C. "Why choose the place with the highest insurance in the U.S.?" he asked. Why not model it after Puerto Rico's legislation which is the "lowest in the nation"?
The session's scheduled 10 a.m. start was delayed by a demonstration staged by some of the governor's exempt employees. The employees subsequently attended the day's proceedings in the chambers along with members of the governor's financial team including Attorney General Iver Stridiron; Kenneth Mapp, Public Finance Authority financial and administrative director; Karen Andrews, chief labor negotiator; Alric Simmonds, the governor's deputy chief of staff; and Kent Bernier, the governor's assistant for economic affairs.
Internal Revenue Bureau director Louis Willis arrived a short time later bearing an orange that had fiscal significance. A report published in Tuesday's V.I. Daily News said Willis will resign if the $235 million bond issue, or something close to it, is not approved so that he can pay income-tax refunds.
The reported quoted Willis as calling the governor's offer to impose pay cuts of 2 to 10 percent on the exempt workers for half a year "peanuts." He said: "We need to feed the whole territory. We need to squeeze the orange and make sure everybody gets some juice."
Willis confirmed on Tuesday that he will resign unless the borrowing is approved. In response, he received much chiding from the senators.
Appropriations bills approved
The senators passed two bills, neither of which contain any revenue-cutting measures. One of the bills funds critical sewer and wastewater collection systems.
Bill No. 25-0035 adds the Water and Power Authority to the list of the $500,000 appropriation from the unused portion of the $15 million bond proceeds authorized under section 1(a) of Act 6297 to the Government Employees Retirement System for the early retirement of hazardous duty employees. The measure has been strongly opposed by a GERS advocate group.
It also provides a $600,000 appropriation from the Land Bank Fund to the Department of Public Works for a public cemetery on St. Thomas.
And it provides for a $2.3 million appropriation from the Union Arbitration Award and Government Employee Increment Fund as a contribution to the General Fund for FY 2003.
Bill No. 25-0036 in its first section appropriates $5.4 million from the General Fund to be paid by July 31 to the Public Works Department for repair and maintenance of wastewater collection and treatment systems territory-wide; another $4 million for the same purpose to be paid by Sept. 30; and another $750,000 to DPW for emergency repairs to the systems.
Section 2 of the bill extends the filing deadline for the V.I. Tax Study Commission to submit its first report from Sept. 30, 2001, to Nov. 30, 2003; it also changes the expiration date of the term on the commission from Sept. 30, 2002, to June 30, 2005.
Section 3 increases the appropriation from the Indirect Cost Fund for FY 2003 operating expenses – including salaries and other purposes – of the Office of Management and Budget, Personnel Division, Property and Procurement Department and Finance Department from $1.3 million to $2.5 million, increasing the total fund from $2.7 million to $3.9 million.
Section 4 increases the appro priation from the Transportation Trust Fund as a contribution to the General Fund from $10 million to $11.5 million.
In the day's first order of business, which kept the lawmakers busy until early afternoon, they approved the nominations of Roy Anduze and Daryl Lynch to the WAPA board, the renomination of Carver C. Farrow Sr. to the GERS board and Liston A. Davis to the Board of Education.
All senators attended the session except for Sen. Raymond "Usie" Richards who was off-island.

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.

SENATE'S FISCAL CRISIS PLAN REMAINS TO BE SEEN

0
June 17, 2003 – If the Senate has a comprehensive plan to meet the territory's fiscal crisis, it was not evident by 8 p.m. Tuesday, when the day's full session was adjourned until 9 a.m. Wednesday after the lawmakers approved two bills, one amendment and four nominations.
Senators say the whole plan will fall in to place Wednesday after the remaining five bills and two resolutions have been acted upon. Sens. Louis Hill and Shawn-Michael Malone said after Tuesday's session that "the gap will be closed."
Both said they do not approve of any borrowing at this time. "I support borrowing for proper purposes, capital improvements, but not to pay bills," Hill said. But he also said that the looming fourth-quarter (July-September) deficit for Fiscal Year 2003 will be resolved in the Senate's proposals.
Senate President David Jones said the 25th Legislature has "a workable compromise to ease the stress in the General Fund, and in the coming months we will put policies in place to make sure we don't return to this situation."
According to Jones, the Legislature has produced a plan that "reduces spending, increases revenues, provides a mechanism for financing and makes sure the medicine applied will not kill the patient."
Just what that mechanism is remains to be seen. Members of the Legislature and the administration held closed-door meetings last week seeking to resolve differences and come up with a plan acceptable to both branches of government for addressing the fiscal crisis. Little information on what was discussed was forthcoming from any of the participants. (See "2nd Senate-administration session is Wednesday".)
Although Jones commended his colleagues for "sticking together and weaving a tapestry resulting in measure to address the fiscal challenges," little "sticking together" was apparent Tuesday.
The Senate recently patted itself on the back for "working together in unity" when all 15 legislators signed a letter to Gov. Charles W. Turnbull asking him to rescind last year's hefty pay increases to exempt government employees. They made his doing a condition of their taking up the governor's bill calling for a $235 million bond issue to deal with the territory's financial woes.
On Tuesday, things were back to normal, with votes being decided on a majority/minority basis. The heretofore refreshingly amicable atmosphere in the 25th Legislature appeared to have come to an abrupt halt, as senators directed barbs at one another.
Minority pay-cut proposals rejected
The minority bloc tried unsuccessfully first to lower senators' salaries by 10 percent and then to reduce the salaries of all senators, Territorial Court judges, the governor and the lieutenant governor by 10 percent.
The first was on a motion by Sen. Norman Jn Baptiste which was contested by Sen. Emmett Hansen II, who said senators cannot act on measures affecting their salary while in term. Jn Baptiste said it was legal if all members voluntarily approved the measure. Hansen asked legal counsel Yvonne Tharpes to give an opinion; however, she did not.
The two proposals received identical 5-9 votes. Approving them were Sens. Baptiste, Adlah "Foncie" Donastorg, Carlton Dowe, Almando "Rocky" Liburd and Celestino A. White Sr. Voting against them were Sens. Lorraine Berry, Douglas Canton, Roosevelt David, Hansen, Hill, Jones, Malone, Luther Renee and Ronald Russell.
Donastorg again brought up his measure to reduce the Senate size to nine members from the current 15; and it again failed, this time on a 6-8 vote. Voting in favor were Sens. Baptiste, Berry, David, Donastorg, Hill and White. Voring against were Sens. Canton, Dowe, Hansen, Jones, Liburd, Malone, Renee and Russell.
The Senate actually lowered one of the governor's proposals for increasing the portion of employee contributions to health insurance premiums. The governor had proposed a 60/40 government/employee formula; the Senate made it 65/35, which Jones said would "ease the burden on the General Fund, and not overly burden the employees." Currently, the ratio is 73/27.
Hill was incensed by the amount of money the government spends on health insurance. "We spend 10 percent of the budget — $68 million," he said. "When are we going to question why? It's unreasonable."
It's Hill's belief that the legislation mandating the insurance, passed by the 22nd Legislature in 1998, must be amended. He said the legislation was modeled after similar law in Washington, D.C. "Why choose the place with the highest insurance in the U.S.?" he asked. Why not model it after Puerto Rico's legislation which is the "lowest in the nation"?
The session's scheduled 10 a.m. start was delayed by a demonstration staged by some of the governor's exempt employees. The employees subsequently attended the day's proceedings in the chambers along with members of the governor's financial team including Attorney General Iver Stridiron; Kenneth Mapp, Public Finance Authority financial and administrative director; Karen Andrews, chief labor negotiator; Alric Simmonds, the governor's deputy chief of staff; and Kent Bernier, the governor's assistant for economic affairs.
Internal Revenue Bureau director Louis Willis arrived a short time later bearing an orange that had fiscal significance. A report published in Tuesday's V.I. Daily News said Willis will resign if the $235 million bond issue, or something close to it, is not approved so that he can pay income-tax refunds.
The reported quoted Willis as calling the governor's offer to impose pay cuts of 2 to 10 percent on the exempt workers for half a year "peanuts." He said: "We need to feed the whole territory. We need to squeeze the orange and make sure everybody gets some juice."
Willis confirmed on Tuesday that he will resign unless the borrowing is approved. In response, he received much chiding from the senators.
Appropriations bills approved
The senators passed two bills, neither of which contain any revenue-cutting measures. One of the bills funds critical sewer and wastewater collection systems.
Bill No. 25-0035 adds the Water and Power Authority to the list of the $500,000 appropriation from the unused portion of the $15 million bond proceeds authorized under section 1(a) of Act 6297 to the Government Employees Retirement System for the early retirement of hazardous duty employees. The measure has been strongly opposed by a GERS advocate group.
It also provides a $600,000 appropriation from the Land Bank Fund to the Department of Public Works for a public cemetery on St. Thomas.
And it provides for a $2.3 million appropriation from the Union Arbitration Award and Government Employee Increment Fund as a contribution to the General Fund for FY 2003.
Bill No. 25-0036 in its first section appropriates $5.4 million from the General Fund to be paid by July 31 to the Public Works Department for repair and maintenance of wastewater collection and treatment systems territory-wide; another $4 million for the same purpose to be paid by Sept. 30; and another $750,000 to DPW for emergency repairs to the systems.
Section 2 of the bill extends the filing deadline for the V.I. Tax Study Commission to submit its first report from Sept. 30, 2001, to Nov. 30, 2003; it also changes the expiration date of the term on the commission from Sept. 30, 2002, to June 30, 2005.
Section 3 increases the appropriation from the Indirect Cost Fund for FY 2003 operating expenses – including salaries and other purposes – of the Office of Management and Budget, Personnel Division, Property and Procurement Department and Finance Department from $1.3 million to $2.5 million, increasing the total fund from $2.7 million to $3.9 million.
Section 4 increases the approp riation from the Transportation Trust Fund as a contribution to the General Fund from $10 million to $11.5 million.
In the day's first order of business, which kept the lawmakers busy until early afternoon, they approved the nominations of Roy Anduze and Daryl Lynch to the WAPA board, the renomination of Carver C. Farrow Sr. to the GERS board and Liston A. Davis to the Board of Education.
All senators attended the session except for Sen. Raymond "Usie" Richards who was off-island.

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.

SENATE'S FISCAL CRISIS PLAN REMAINS TO BE SEEN

0
June 17, 2003 – If the Senate has a comprehensive plan to meet the territory's fiscal crisis, it was not evident by 8 p.m. Tuesday, when the day's full session was adjourned until 9 a.m. Wednesday after the lawmakers approved two bills, one amendment and four nominations.
Senators say the whole plan will fall in to place Wednesday after the remaining five bills and two resolutions have been acted upon. Sens. Louis Hill and Shawn-Michael Malone said after Tuesday's session that "the gap will be closed."
Both said they do not approve of any borrowing at this time. "I support borrowing for proper purposes, capital improvements, but not to pay bills," Hill said. But he also said that the looming fourth-quarter (July-September) deficit for Fiscal Year 2003 will be resolved in the Senate's proposals.
Senate President David Jones said the 25th Legislature has "a workable compromise to ease the stress in the General Fund, and in the coming months we will put policies in place to make sure we don't return to this situation."
According to Jones, the Legislature has produced a plan that "reduces spending, increases revenues, provides a mechanism for financing and makes sure the medicine applied will not kill the patient."
Just what that mechanism is remains to be seen. Members of the Legislature and the administration held closed-door meetings last week seeking to resolve differences and come up with a plan acceptable to both branches of government for addressing the fiscal crisis. Little information on what was discussed was forthcoming from any of the participants. (See "2nd Senate-administration session is Wednesday".)
Although Jones commended his colleagues for "sticking together and weaving a tapestry resulting in measure to address the fiscal challenges," little "sticking together" was apparent Tuesday.
The Senate recently patted itself on the back for "working together in unity" when all 15 legislators signed a letter to Gov. Charles W. Turnbull asking him to rescind last year's hefty pay increases to exempt government employees. They made his doing a condition of their taking up the governor's bill calling for a $235 million bond issue to deal with the territory's financial woes.
On Tuesday, things were back to normal, with votes being decided on a majority/minority basis. The heretofore refreshingly amicable atmosphere in the 25th Legislature appeared to have come to an abrupt halt, as senators directed barbs at one another.
Minority pay-cut proposals rejected
The minority bloc tried unsuccessfully first to lower senators' salaries by 10 percent and then to reduce the salaries of all senators, Territorial Court judges, the governor and the lieutenant governor by 10 percent.
The first was on a motion by Sen. Norman Jn Baptiste which was contested by Sen. Emmett Hansen II, who said senators cannot act on measures affecting their salary while in term. Jn Baptiste said it was legal if all members voluntarily approved the measure. Hansen asked legal counsel Yvonne Tharpes to give an opinion; however, she did not.
The two proposals received identical 5-9 votes. Approving them were Sens. Baptiste, Adlah "Foncie" Donastorg, Carlton Dowe, Almando "Rocky" Liburd and Celestino A. White Sr. Voting against them were Sens. Lorraine Berry, Douglas Canton, Roosevelt David, Hansen, Hill, Jones, Malone, Luther Renee and Ronald Russell.
Donastorg again brought up his measure to reduce the Senate size to nine members from the current 15; and it again failed, this time on a 6-8 vote. Voting in favor were Sens. Baptiste, Berry, David, Donastorg, Hill and White. Voring against were Sens. Canton, Dowe, Hansen, Jones, Liburd, Malone, Renee and Russell.
The Senate actually lowered one of the governor's proposals for increasing the portion of employee contributions to health insurance premiums. The governor had proposed a 60/40 government/employee formula; the Senate made it 65/35, which Jones said would "ease the burden on the General Fund, and not overly burden the employees." Currently, the ratio is 73/27.
Hill was incensed by the amount of money the government spends on health insurance. "We spend 10 percent of the budget — $68 million," he said. "When are we going to question why? It's unreasonable."
It's Hill's belief that the legislation mandating the insurance, passed by the 22nd Legislature in 1998, must be amended. He said the legislation was modeled after similar law in Washington, D.C. "Why choose the place with the highest insurance in the U.S.?" he asked. Why not model it after Puerto Rico's legislation which is the "lowest in the nation"?
The session's scheduled 10 a.m. start was delayed by a demonstration staged by some of the governor's exempt employees. The employees subsequently attended the day's proceedings in the chambers along with members of the governor's financial team including Attorney General Iver Stridiron; Kenneth Mapp, Public Finance Authority financial and administrative director; Karen Andrews, chief labor negotiator; Alric Simmonds, the governor's deputy chief of staff; and Kent Bernier, the governor's assistant for economic affairs.
Internal Revenue Bureau director Louis Willis arrived a short time later bearing an orange that had fiscal significance. A report published in Tuesday's V.I. Daily News said Willis will resign if the $235 million bond issue, or something close to it, is not approved so that he can pay income-tax refunds.
The reported quoted Willis as calling the governor's offer to impose pay cuts of 2 to 10 percent on the exempt workers for half a year "peanuts." He said: "We need to feed the whole territory. We need to squeeze the orange and make sure everybody gets some juice."
Willis confirmed on Tuesday that he will resign unless the borrowing is approved. In response, he received much chiding from the senators.
Appropriations bills approved
The senators passed two bills, neither of which contain any revenue-cutting measures. One of the bills funds critical sewer and wastewater collection systems.
Bill No. 25-0035 adds the Water and Power Authority to the list of the $500,000 appropriation from the unused portion of the $15 million bond proceeds authorized under section 1(a) of Act 6297 to the Government Employees Retirement System for the early retirement of hazardous duty employees. The measure has been strongly opposed by a GERS advocate group.
It also provides a $600,000 appropriation from the Land Bank Fund to the Department of Public Works for a public cemetery on St. Thomas.
And it provides for a $2.3 million appropriation from the Union Arbitration Award and Government Employee Increment Fund as a contribution to the General Fund for FY 2003.
Bill No. 25-0036 in its first section appropriates $5.4 million from the General Fund to be paid by July 31 to the Public Works Department for repair and maintenance of wastewater collection and treatment systems territory-wide; another $4 million for the same purpose to be paid by Sept. 30; and another $750,000 to DPW for emergency repairs to the systems.
Section 2 of the bill extends the filing deadline for the V.I. Tax Study Commission to submit its first report from Sept. 30, 2001, to Nov. 30, 2003; it also changes the expiration date of the term on the commission from Sept. 30, 2002, to June 30, 2005.
Section 3 increases the appropriation from the Indirect Cost Fund for FY 2003 operating expenses – including salaries and other purposes – of the Office of Management and Budget, Personnel Division, Property and Procurement Department and Finance Department from $1.3 million to $2.5 million, increasing the total fund from $2.7 million to $3.9 million.
Section 4 increases the appr opriation from the Transportation Trust Fund as a contribution to the General Fund from $10 million to $11.5 million.
In the day's first order of business, which kept the lawmakers busy until early afternoon, they approved the nominations of Roy Anduze and Daryl Lynch to the WAPA board, the renomination of Carver C. Farrow Sr. to the GERS board and Liston A. Davis to the Board of Education.
All senators attended the session except for Sen. Raymond "Usie" Richards who was off-island.

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PUBLIC HEARINGS BEING HELD ON YOUTH GROUPS

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June 17, 2003 — The Senate Committee on Education and Youth is holding a public hearing to discuss the status of youth groups and organizations in the territory on June 25 at Earl B. Ottley Legislative Hall on St. Thomas. A similar meeting is being held Wednesday for the St. Croix district in the Legislative Conference Room. Both hearings begin at 6 p.m.
Youth leaders and organizers planning to attend the hearings are asked to present a status report of their programs, including goals, staffing and funding needs. The committee is also seeking testifiers with knowledge of, or who were involved in, the former Youth Commission, which was abolished in the government reorganization of 1987.
Testifiers should present written statements if possible and limit their testimonies to three minutes. All persons planning on attending the hearings should call Sen. Ronald Russell's office at 712-2229 or 712-2321 to confirm attendance. Testifiers should sign in by 5:30 p.m. on the day of the hearings.

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PUBLIC HEARINGS BEING HELD ON YOUTH GROUPS

0
June 17, 2003 — The Senate Committee on Education and Youth is holding a public hearing to discuss the status of youth groups and organizations in the territory on June 25 at Earl B. Ottley Legislative Hall on St. Thomas. A similar meeting is being held Wednesday for the St. Croix district in the Legislative Conference Room. Both hearings begin at 6 p.m.
Youth leaders and organizers planning to attend the hearings are asked to present a status report of their programs, including goals, staffing and funding needs. The committee is also seeking testifiers with knowledge of, or who were involved in, the former Youth Commission, which was abolished in the government reorganization of 1987.
Testifiers should present written statements if possible and limit their testimonies to three minutes. All persons planning on attending the hearings should call Sen. Ronald Russell's office at 712-2229 or 712-2321 to confirm attendance. Testifiers should sign in by 5:30 p.m. on the day of the hearings.

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.