Aug. 23, 2002 – All but the biggest chunks of the government's Fiscal Year 2003 budget made their way through the Senate Rules Committee Thursday, despite the repeated efforts of one senator to bring proceedings to a halt.
Sen. Adelbert Bryan, who attended no Finance Committee budget hearings, made up for lost time Thursday, questioning the intent and financing of each bill, while opining far and wide on everything from Saddam Hussein and President Bush to Cruzan Rum sales at A.H. Riise.
The committee approved 23 of the 26 bills on the agenda, allowed one to die in committee, and postponed action until Monday on the executive branch budget and the voluminous Omnibus Appropriation Act of 2003. Also yet to be adopted is the Legislature's own FY 2003 budget, which originates in the Rules Committee.
Thursday's session was to have begun at 10 a.m. but was delayed for more than an hour awaiting the arrival of some St. Croix senators because their flight to St. Thomas was late. It was recessed shortly after it was convened, when Bryan demanded the post auditor's analysis of each bill on the agenda, so work didn't actually get under way until early afternoon.
After calling a half-hour recess around 6 p.m., the Rules chair, Sen. Carlton Dowe, announced the executive budget and Omnibus bills would be heard on Monday, which had been scheduled for a full Senate session for final review of all the budget bills. Dowe said the full session would be changed to Tuesday and Wednesday.
The executive branch budget, the Omnibus bill and the legislative budget were to have been heard last in the afternoon. The other bills, which had gone through extensive review in the Finance Committee and mark-up sessions, were approved with little discussion. The only dissenting votes came from Bryan, who either abstained or voted "no" on all but three of the measures.
The bills approved include fund transfers, supplemental department appropriations, $29 million for the University of the Virgin Islands, a $4.5 million for WTJX-TV/the V.I. Public Television System to comply with the federally mandated conversion from analog to digital transmission, and additional funding for the territory's three carnival events.
Bryan quizzed Post Auditor Terry Drake on each bill, asking questions Drake sometimes couldn't answer. Things came to a head when Bryan demanded to know the breakdown of appropriations from the Internal Revenue Matching Fund. The fund is supported by excise taxes from rum sales on the U.S. mainland, and therefore fluctuates. Bryan demanded to know the present amount in the fund, a figure Drake could not supply.
Hansen noted, and her other colleagues agreed, that it is impossible to know the precise amount of money in the fund at any given time. "It is a projection," she said. "If people drink more rum next year, then it's more; and if they don't, it's less." She added that Bryan was fully aware of how the fund operated.
As Bryan continued to badger Drake, Sen. Norma Pickard-Samuel also came to the post auditor's defense. "The impression is that we don't get information; that is not so," she said. "We do get information."
More sparks over Lieutenant Governor's Office
Another hot-button topic of the day was the budget for the Office of the Lieutenant Governor, which Hansen and Lt. Gov. Gerard Luz James II spoke out on in back-to-back press conferences last week. The Finance Committee cut James's budget by about $1.4 million from the increase the governor had proposed after James refused to appear before the committee himself, instead on two occasions sending his chief of staff. Hansen refused to hear testimony from the aide, so the budget never got an airing before the committee.
Bryan persisted in quizzing Drake about the $1.4 million cut. "These are people who deal with property taxes and insurance," Bryan said. "On the one hand, you are increasing salaries, and on the other hand, you are decreasing the salaries of others."
Drake's explanation of the committee's action was: "It was vacant positions that were cut from the lieutenant governor's office. There were no employees in the positions at the time."
Bryan disagreed, insisting that James's office had been shorted 25 positions. He said he would later offer an amendment on the office budget. "They don't have new employees to assess properties like Hovensa," Bryan said.
Hansen said, "If these positions were so important, why weren't they listed in the classified category? They're political positions." She added of James, "He should have come before the committee." She also pointed out that, had Bryan attended the budget hearings, he would have had all the information he needed.
Pickard-Samuel, a Finance Committee member, sided with Hansen, making it clear the committee had not reduced James's staff. "I don't want anyone in this community to think we cut anyone's salary," she said. James has said he was in the process of interviewing candidates for the positions and that he terminated the process because of the budget cut.
No support for privatization of clinics
A bill transferring the East End Family Health Center on St. Thomas to the St. Thomas East End Medical Center Corp. and the Frederiksted Health Center/Ingeborg Nesbitt Clinic to Frederiksted Health Care Inc. was not approved. It died in committee for lack of a second after Sen. Donald "Ducks" Cole moved its adoption.
From the start, Hansen had opposed the transfer of the facilities from government status to not-for-profit operations, which Government House has cited as an example of its move toward privitization of certain government services. Administration officials had said the clinics at not-for-profits would be eligible for federal grant funding they could not receive as government entities.
At the last Finance Committee meeting, it was approved despite her protests on a 3-1 vote, with one abstention. Sens. Douglas E. Canton Jr., Cole and Dowe voted "yes," with Hansen voting "no" and Sen. Norman Jn Baptist abstaining. On Thursday, Cole found himself standing alone.
At the Finance hearing, Hansen had called the proposal, submitted by the governor, "very ridiculous." She compared it to giving the territory's hospitals semi-autonomy, which she said has been the downfall of Juan F. Luis Hospital on St. Croix by creating jurisdictional problems within the facility. On Thursday, Hansen asked Dowe if the bill could be moved again in the Rules Committee. Dowe replied, "Yes, but not today." Hansen retorted, "I'll move it again. I'll move it to kill it."
As Bryan continued to try to hold the meeting hostage with his verbal attacks on Drake and his relentless questioning of issues already resolved in earlier meetings, Dowe criticized his colleague's tactics. "Every member of this body had the opportunity to attend budget hearings," Dowe said. "Today is not the time" to be raising questions already addressed, he said.
All of the budget bills were reported out to the full Senate on a "close rule," which means they cannot be amended on the floor — and effectively prevents any non-majority member from acting on them. The Rules Committee comprises all majority members.
Budget bills approved
The committee approved:
No. 24-0265 – to appropriate money to the Property and Procurement Department for operating expenses from Business and Commercial Properties Revolving Fund.
No. 24-0266 – to appropriate money to the University of the Virgin Islands for salaries and expenses, and for other purposes.
No. 24-0267 – to appropriate money to the Finance and Labor Departments for operating expenses from the Government Insurance Fund.
No. 24-0268 – to appropriate a lump sum from the Health Revolving Fund.
No. 24-0269 – to app ropriate a lump sum from the Indirect Cost Fund for salaries, operating expenses and other purposes of the Office of Management and Budget, Division of Personnel, Property and Procurement Department and Finance Department.
No. 24-0270 – to appropriate a lump sum from the Insurance Guaranty Fund to the General Fund.
No. 24-0271 – to appropriate funds from the Interest Revenue Fund.
No. 24-0272 – to appropriate funds from the Internal Revenue Matching Fund.
No. 24-0273 – to appropriate funds from the Caribbean Basin Initiative Fund.
No. 24-0274 – to appropriate funds from the Transportation Revolving Fund for salaries, fringe benefits, supplies and other services and charges for the Property and Procurement Department.
No. 24-0275 – to appropriate funds for Public Works Department operating expenses from the Sewage System Fund.
No. 24-0276 – to appropriate $10 million from the Transportation Trust Fund to the General Fund.
No. 24-0277 – to appropriate funds to the Public Services Commission for operating expenses.
No. 24-0278 – to appropriate funds for Public Works Department operating expenses from the St. John Capital Improvement Fund.
No. 24-0279 – to appropriate $4.5 million from the General Fund to WTJX/Public Television System.
No. 24-0280 – to appropriate funds from the Tourism Advertising Revolving Fund to the Housing Parks and Recreation Department.
No. 24-0281 – to provide for operating expenses of the Public Employees Relations Board and the Labor Management Committee.
No. 24-0286 – to authorize the Office of Management and Budget director to allocate funds from the Miscellaneous Section of the 2003 Fiscal Year Budget to cover salary increases to each department and agency of the executive branch. *
No. 24-0287 – to amend the V.I. Code to permit the Property and Procurement commissioner to set fees for use of the government printing office.
No. 24-0288 – to appropriate funds to the Taxicab Commission for operating expenses.
No. 24-0289 – to appropriate funds from the Anti-Litter and Beautification Fund to the Public Works Department, and for other purposes.
No. 24-0290 – to appropriate funds for Territorial Court and Judicial Council salaries and expenses, and for other purposes. *
No. 24-0291 – to appropriate funds for Territorial Public Defender's Office operating expenses. *
* These three bills were approved unanimously. On all of the others, Bryan cast the lone "no" vote or abstained.

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Aug. 24, 2002 – The deadline for submitting suggestions for the theme contest announced earlier this summer has been extended to Friday, Aug. 30, to boost student participation. the contest is open to public school students, grades 4 – 12. Submissions to the contest should be no longer than one line and capture the student's creative view of his/her overall educational experience. All entries should include the student's name, date of birth, address, contact number, grad school and principal's name.
Students are asked to drop off their entries at the Commissioner's Office at 2133 Hospital Street, Christiand or the Curriculum Center at Kingshill.
Entries may also be faxed to 773-4624, to the attention of Mr. Anthony Mills).
As an added incentive, the Department solicited prized from local businesses for the contest so that students will become as creative as possible and be rewarded for their efforts. The author of the theme selected will receive a grand prize worth $500 in school supplies, books and other merchandise.

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Aug. 24, 2002 – The Division of Banking and Insurance will be administering the Insurance examination on St. Croix at 10 a.m. on Tuesday, Sept. 9, at the Division of Personnel, Estate Orange Grove, Christiansted.
The last date to register will be by 3 p.m. on Monday, Sept. 9.
The registration fee is $25.
For further information contact the Office of the Lieutenant Governor – Division of Banking and Insurance at 773-6459.

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Aug. 24, 2002 – Terrence T. Joseph, St. Croix Insular Superintendent of Schools, announed that all returning elementary school students should report to school on Tuesday, Aug. 27. Transfer and Kindergarten students should report at 8:30 a.m. on Wednesday, Aug. 28, accompanied by parents or guardians. Classes will be held all day.
Terrence T. Joseph, St. Croix Insular Superintendent of Schools, announed that all returning elementary school students should report to school on Tuesday, Aug. 27. Transfer and Kindergarten students should report at 8:30 a.m. on Wednesday, Aug. 28, accompanied by parents or guardians.

Aug. 24, 2002 – Registration for classes for the Day Adult Education Program is currently underway. Individuals may register between 9 a.m. and 3 p.m. at the Day Adult Center on Commandant Gade Monday through Friday. Classes will begin on Tuesday, Sept. 3.
Programs offered through the Day Adult Education Center are aimed at preparing individuals with skills needed to prepare for today's job market. In addition, courses to prepare students to obstain a GED Diploma and classes in basic computer operations are of benefit.
Space is limited, so individuals are encouraged to register immediatley.
Additional information by be obtained by phone the Day Adult Eduaction Center at 774-6899.

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Aug. 24, s00s – The St. Thomas-St. John District Director of the School Lunch Program, Elva Richards-Huggins, announced that breakfast and lunch will be served to all public school students beginning the first day of school, Aug. 27.
Students are encouraged to participate in the programs as they provide nutritious and well-balanced meals. Breakfast is the most important meal of the day and has been proven that eating in the morning stimulates the mind and prpared the body for growth and exercise.

Aug. 24, 2002 – Elise Caiby Warner, principal of Leonard Dober Elementary School, announced the following schedule for Kindergarten students attending the new school year.
Aug. 27 – 8 a.m. students in grades one to six are to report.
Aug. 28 – 8 a.m. students whose last names begin with the letters A-L, for orientation and a full day of classes.
Aug. 29 – 8 a.m. students whose last names begin with the letters M-Z will meet for orientation and a full day of classes.
All students are to be accompanied by a parent or guardian. parents are reminded that immunization records are required to complete the registration.
Gym uniforms and workbooks will be available for purchase.

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Aug. 24, 2002 – Jeanne Richards, principal of Evelyn E. Marcelli Elementary School, has announced the beginning of classes for the 2002 -2003 school year.
Reporting dates for all Kindergarten students is as follows:
Aug. 28 – Last names beginning A-L.
Aug. 29 – Last names beginning with M-Z.
All Kindergarten students are to be accompanied by a parent or guardian. Parents are reminded that Kindergarten students are to be prepared for a full day of classes following orientation.

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Aug. 24, 2002 – The deadline for submitting suggestions for the theme contest announced earlier this summer has been extended to Friday, Aug. 30, to boost student participation. The contest is open to public school students, grades 4-12. Submissions to the contest should be no longer than one line and capture the student's creative view of his overall educational experience, or what they hope it to be. All entries should include the student's name, date of birth, address, contact number, grade school and principal's name.
Students are asked to drop off their entries to the following locations on St. Thomas: The Public Information Office at 44-46 Kongens Gade or the Curriculum Center in Tutu.
As an incentive, the Department of Education solicited prizes from local businesses for the contest so that students will become as creative as possible and will be rewarded for their efforts. The author of the theme selected will receive a grand prize worth $500 in school supplies, books and other merchandise.

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Aug. 23, 2002 – Recently published tourism statistics from the Bureau of Economic Research that indicate tourism dropped by 7.8 percent in the first six months of 2002 compared with the previous year have prompted a war of words from a couple of quarters.
For starters, Lauritz Mills, who heads the Bureau of Economic Research, sent out a press release saying, in essence, wait a minute, things aren't as bad as they seem.
"Let's put it in perspective," she said in a Source interview.
She said that across the Caribbean, tourism fell by double digits following Sept. 11. And she said that until September 11, Virgin Islands tourism was strong.
Thanks to a healthy winter, spring and summer in 2001 that offset plummeting figures after Sept. 11, overall tourism increased by 5 percent for 2001. While the number of cruise ship passengers increased by 7 percent for all of 2001, the number of air arrivals dropped by 3 percent.
Mills press release was followed by one from gubernatorial candidate John de Jongh that said the figures don't lie.
"We're in trouble and those at the top refuse to acknowledge it," deJongh said, calling for the creation of a Tourism Authority. "We need someone in authority who understands the basics of a tourism economy and who knows hwo to partner with all components of the industry…the airlines, the cruise ship companies, the hotels , the travel agents, the charter boat companies andall other the impacthe thi smost important segment of our economy."
The statistics reflect the downturn in the economy after the Sept. 11 terrorist attacks, the plummeting stock market and the fact that major corporations are laying off workers left and right.
Bob Siefert, president of the St. Croix Hotel and Tourism Association and manager at the Divi Carina Bay Resort and Casino, said that "bullet-proof" resorts like tony Caneel Bay Resort in St. John, Little Dix Bay in Virgin Gorda and the Four Seasons Resort in Nevis aren't affected, but places like the Divi suffer because their middle-income guests are worried if they'll have jobs next month.
And he said the fact that Carnival Cruise Lines has gone public with its departure from St. Croix due to crime problems hasn't helped.
A look at the January to June figures for 2002 and 2001 show that St. Croix took the biggest hit, with air arrivals down 11 percent over the previous year. In St. Thomas/St. John, the figure fell by only 4.4 percent.
Cruise passenger arrivals fell for those same six months by 28.7 percent over the year before in St. Croix, with the number dropping by 8.7 percent in St. Thomas/St. John.
And the hotel occupancy was down 8.1 percent in St. Croix for the June to July period compared to the previous year. In St. Thomas/St. John, the figure fell by 1.8 percent.
Since St. Thomas/St. John numbers are lumped together, the figures may not reflect St. John's reality. Kathy McLaughlin, who heads the St. John Accommodations Council, said that while January looked a little soft compared to the January before, bookings were strong throughout the spring.
"I did know we had a lot more last minute bookings," McLaughlin said. And McLaughlin said that she and other vacation villa managers were occasionally forced to come up with discount prices to fill the villas.
McLaughlin's remarks reflect what hoteliers said throughout the winter and spring season – that people were waiting until right before their departure to book to see what sales materialized, and of course, if it was safe to fly.
However, Richard Doumeng, former president of the St. Thomas/St. John Hotel Association, said given what the industry expected after Sept. 11, the winter season turned out better than expected.
The St. John vacation villa managers were joined by hoteliers across the territory in slashing prices.
"It's a double whammy," Siefert said.
Siefert said that a Virgin Islands government sponsored promotion gave guests the fourth night free, a 35 percent discount on the room rate and a $100 gift certificate that cost hoteliers $50 helped fill rooms but didn't generate as much revenue as would rooms sold at the usual rate.
Doumeng said that a look at the back page of the "New York Times" shows that rates at the upscale Renaissance Grand Beach Resort were lower than the more-middle of the road Bolongo Bay Beach Resort and Spa, which Doumeng manages.
"That's not good for the Renaissance and it's not good for Bolongo," Doumeng said.
The prognosis also appeared to be poor for improvements in the upcoming winter season.
"We’re not seeing anything," Siefert said.
As for Doumeng, he's not worrying yet. He said that long before Sept. 11, the travel industry created a "society of procrastinators and bargain hunters."
"It's not unusual to pick up 30 to 35 percent of the occupancy rate for the month in the month," Doumeng said.
David Yamada, who heads the St. Thomas/St. John Hotel and Tourism Association, and the organization's director, Beverly Nicholson, were both off island on Friday.
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