FINANCE COMMITTEE PASSES FY 2001 BUDGET

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The last day of the Senate Finance Committee's budget hearing for Fiscal Year 2001 wrapped up at 10 p.m. Monday, concluding what Committee Chairwoman Lorraine Berry called "the most talked-about budget in Virgin Islands history."
Appropriations totaling $361.3 million were passed for the government's executive departments and agencies, and will go to the Rules Committee Tuesday or Wednesday, and to the full Senate, if approved by Rules.
Berry said the committee had cut every agency's budget, except for the Internal Revenue Bureau, Finance Department and the Inspector General's office. IRB was the most dramatic increase from $5.9 million to $8.1 million. Berry said throughout the hearings that the revenue collecting agency must have the funds to operate efficiently and collect taxes. The increased funding, Berry anticipates, will better equip the agencies to collect the tens of millions in back taxes owed the government.
Gov. Charles Turnbull's proposed Year 2001 Budget of $429.6 million had to be lowered as two of his projected revenue proposals flunked. The highly unpopular gross receipts tax increase from 4 percent to 5 percent was killed by the Finance Committee, along with a cost-sharing proposal to require government employees to pay 50 percent of their retirement contributions.
Projected revenues fell to $414.6 million.
The final figures are the following.
V.I. Election System $ 719,654
Board of Elections STT/STJ 50,852
Board of Elections STX 57,749
Board of Education 1,279,700
Office of the Governor 5,514,145
Office of Mgt. And Budget 1,035,382
Division of Personnel 2,481,635
V.I. Fire Services 9,405,316
Office of Veterans Affairs 244,550
Office of the Lt. Governor 3,476,161
Dept. of Justice 23,845,598
Licensing/Consumer Affairs 2,022,760
Inspector General 988,395 B increase from $716,290
Department of Finance 6,312,430 B increase from $5,649,432
Dept. of Prop. & Proc. 4,049,818
Dept. of Health 26,084,407
Dept. of Education 120,234,903
Hosp. & Health FAC Corp. 37,277,397
Dept. of Human Services 28,880,344
Dept. of Planning & NR 5,034,408
V.I. Police Dept. 28,049,241
Dept. of Public Works 22,706,552
Dept. of Housing, Pks&Rec 5,054,776
Dept. of Agriculture 2,770,272
Dept. of Tourism 3,223,485
Dept. of Labor 2,186,692
Miscellaneous 9,815
Grand Total $361,296,384.
The above totals do not include funding for the Legislature, Territorial Court or the University of the Virgin Islands. With those added in, the total spending from local funding would come to $416.9 million, Post Auditor Campbell Malone's projected revenue figure. Federal grants would bring the total government spending to around $441 million in FY 2001.
Berry said, "Whatever could happen to delay this budget, happened." She cited the Southern Energy hearings, the teachers' strike, the budget's late arrival from Government House and Hurricane Debby. However, Berry was full of praise for her committee and said she hoped there would be improved revenues for 2001.

MOST V.I. SCHOOLS TO EXTEND CALENDAR 1 WEEK

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Two weeks of school lost due to construction projects will be made up by extending the school calendar one week, to June 14 for elementary, middle and junior high schools and June 15 for Ivanna Eudora Kean High School on St. Thomas and the Educational Complex Vocational School on St. Croix.
For schools that started even later—Peace Corps Elementary School and Charlotte Amalie High School on St. Thomas and Central High School on St. Croix—the school year will likely extend until the last week of June, according to Education Department spokeswoman June Archibald.
Lockhart School, whose start was delayed further due to construction, has decided to extend its school day for the year and will therefore close on June 14, too. Archibald said that option or any other proposal also were available to other schools that started extra late.
Christmas, Easter and Carnival holidays remain unchanged for the year, but Presidents Day, normally a February holiday, will be a school day in 2001.
The 18 days lost to the teachers strike will not be made up. However, Education Commissioner Ruby Simmonds is working on a plan that would offer students and teachers the opportunity to make up lost class time during the summer.
"The Department of Education is proposing to offer students six weeks of classes for remediation as well as for enrichment," Simmonds said in a release from her office.
There will be no charge for students who wish to attend, she said. But there will not be any bus service available.
Archibald said the summer enrichment program would also help teachers who had lost wages during the strike make some extra money during the summer.
The enrichment program is optional, she said.
Simmonds is still hammering out the details, such as which schools would house the programs and how many hours a day they would run.
Archibald said the classes would probably run about four hours, and that lunch may be provided.
The plan was worked out by the School Calendar Task Force made up of Simmonds and representatives of the American Federation of Teachers, the Education Administration Association and the Office of Collective Bargaining. It has been approved by Gov. Charles W. Turnbull.
The proposal for summer sessions was "met favorably by members of the USVI Congress of Parents Teachers and Students Association," according to the release. The group is an umbrella organization representing several PTAs.
The dates for the summer session as well as the reopening of the 2001-2002 school year will be announced "subsequently," the release said.

CABLE SENATE COVERAGE MOVES TO NEW CHANNELS

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The Innovative company has moved television coverage of the V.I. Legislature to Channel 59 on St. Croix and Channel 57 on St. Thomas.
The cable channels can be viewed with or without a cable box, according to a statement from the Legislature, quoting officials of the company. Viewers will be able to see the signal on Channel 61 on St. Croix. The statement did not indicate what channel St. Thomas viewers who do not have a cable box will be able to view.
Senate meeting and public hearings are also broadcast on the radio on WIUJ 102.9 FM.

FINANCE OKs BILL MELDING DEVELOPMENT AGENCIES

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The V.I. government's five main economic development agencies could be combined under one authority if a bill passed by the Senate Finance Committee Monday passes the Rules committee and the full Senate, as its sponsors anticipate it will.
Sen. Violet Anne Golden, the bill's main sponsor, was pleased the measure had passed the Finance Committee. "It will give the agencies greater leverage," she said. "It will allow the agencies to hire consultants if necessary and cut down on their own staffing." It will also provide a venue for the agencies to work together and provide greater unity, she said.
Finance Committee Chairwoman Lorraine Berry said the bill would "provide an umbrella entity." She said with the bill's new fees, the government would be better able to enforce laws governing the entities, and to do more marketing to attract new business to the territory.
The amendment calls for the creation of the Virgin Islands Economic Development Authority. It almost completely rewrites former legislation on Industrial Development Commission reform, and incorporates legislation sent down by the governor to unite the agencies.
It would combine the IDC, the Government Development Bank, the Industrial Park Development Corporation, the Small Business Development Agency and the Bureau of Economic Research under one executive board. The semiautonomous board would be comprised of seven members appointed by the governor with the advice and consent of the Legislature. Three members, one from each island, cannot be government employees, three will be from the cabinet or executive departments and one would be appointed from the Government Employees Retirement System, V.I. Port Authority or the University of the Virgin Islands.
The authority's aim would be to achieve maximum efficiency of operations, and avoid duplication of services and positions. It would also reduce expenses for personnel, physical plant and operations and develop comprehensive programs for the territory's economic development.
The amendment includes several changes in the current IDC law, starting off with a doubled minimum for initial investment from $50,000 to $100,000 for an IDC approved industry or business. The businesses are divided in three categories: 1) mainly industry and production, the marine industry, hotels and transportation and telecommunications; 2) service businesses including investment managers, software developers and e-Commerce; and 3) regulated utilities and other entities including tourism, recreation and health care facilities.
A schedule of application and compliance fees, which range from a $500 Category 1 annual appliance fee to a Category 111 $2,500 fee, would be deposited into an Industrial Promotion Fund under the legislation. Also, the bill establishes that any investigation or proceeding by the IDC to determine compliance by any beneficiary shall be borne by the beneficiary.
The bill retains the option to beneficiaries to have benefits extended by three years upon their agreement to pay all income, excise and gross receipt taxes and other duties and fees for tax years 2001 and 2002.
The measure will go the Rules Committee Tuesday or Wednesday, the final two days of that committee, and then on to the full Senate if it passes Rules. Other sponsors for the bill are Sens. David Jones, Gregory Bennerson, Lorraine Berry, Roosevelt David and George Goodwin.

BOSCHULTE CHRISTMAS CONCERT ON SUNDAY

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The Bertha C. Boschulte Middle School's Christmas Concert will take place at 4 p.m. Sunday in the school cafeteria.
Performing will be the concert choir, concert band and the steel band. Tickets are $3 for students, $5 adults.

3 PRINCIPALS RETIRING ON ST. THOMAS AND ST. JOHN

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The principals of St. Thomas's Addelita Cancryn Junior High School and Michael J. Kirwan Elementary School are retiring along with the principal of St. John's Guy Benjamin Elementary School.
A release from the Education Department Monday said Ivy Williams of Cancryn, Ronalyn David of Benjamin School and Aloma Blake of Kirwan were all retiring "after long and distinguished service."
Yvonne Pilgrim who is currently the assistant principal will take over as acting principal at Cancryn. Blanch Bello has been assigned to be acting principal at Guy Benjamin and Whitman Browne will serve as acting principal at Kirwan School. Browne has been on leave from Education while serving as special assistant to Gov. Charles W. Turnbull. He was formerly an assistant principal at Charlotte Amalie High School.
Brown and Bello will take over their roles on Dec. 11. Pilgrim will take over at Cancryn on Dec. 18.
Education Commissioner Ruby Simmonds said, "I have known all of these outstanding educators over many years and know first-hand the effects of their individual and collective contributions to the Department of education, in particular to the students who have been fortunate to have had them as teacher, and/or principal."
All three are retiring under the Public Employees Voluntary Separation Incentive Act, but all have put in 30 years, according to Education spokeswoman June Archibald.
The last day of work for anyone choosing to retire under the act is Dec. 18.

PARK SERVICE SEEKS PUBLIC'S HELP IN WAR ON RATS

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The National Park Service is asking visitors to Buck Island Reef National Monument to become allies in the agency's war on rats.
An ongoing effort by federal biologists to rid the island of non-native rats will be helped considerably if visitors to the island adhere to Park Service's "pack it in, pack it out" trash policy, said Zandy Hillis-Starr, the Park Service's natural resource manager.
To help control the rats, and consequently protect endangered sea turtle nests, hatchlings and other fragile flora and fauna, the Park Service in August 1999 removed trash cans from Buck Island. But, said Hillis-Starr, while the public has for the most part packed out its trash, some is still being left behind in picnic areas.
And that gives tenacious rats a foothold on the island, she said: "We cannot provide any food sources for the rats."
Rats, accidentally introduced to the West Indies, have no natural predators, according to Hillis-Starr. On most offshore islands they can become so numerous they will devastate both native plants and animal populations.
Last year, to reduce the rat impact on sea turtle and bird nests and hatchlings, not to mention the disturbance to visitors, the island's Division of Resource Management, working with the U.S. Department of Agriculture’s Wildlife Services, began baiting the picnic areas and the shoreline, where the rat population is thickest.
The project will help reduce the population from the present number — 50 to 75 per acre on some 200 acres — to perhaps that many on the entire island.
"They aren't going to have the impact they had," Hillis-Starr said. "We can get them down so they are scattered."
The project is succeeding, she said, but the cooperation of visitors is necessary if that is to continue.
Meanwhile, Hillis-Starr reminded the public that dogs are prohibited on Buck Island. Not only can dogs digging in the sand disturb turtle nests, but the bait used in the rat eradication program is toxic to small mammals.
For more information, call 773-1460.

COMMITTEE PLOWS AHEAD WITHOUT FINANCE CHIEF

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Despite the absence of Finance Commissioner Bernice Turnbull, the Senate Finance Committee proceeded full speed ahead Monday. "It's do or die," said Lorraine Berry, committee chairwoman. "Today is the last meeting."
And for the Department of Planning and Natural Resources, it was indeed "die," as four of DPNR's appropriation requests died in committee, one was tabled indefinitely and one was approved.
Dean Plaskett, DPNR commissioner, said he had been told by the Office of Management and Budget in July not to touch certain funds until they were cleaned up. As of last Thursday, they still haven't been "cleaned up," Plaskett said, adding that the "freeze" by OMB still exists.
Plasket said the department was getting by on federal funds.
He said that Attorney General Iver Stridiron told OMB earlier this year that the funds couldn't be touched without an amendment from the Legislature.
Though amendments were brought forth Monday, they failed to get the necessary vote. Plaskett offered figures for the appropriations he had been given, but some of the senators didn't accept Plaskett's figures as they weren't official amounts, since Turnbull was not present with the up-to-date fund figures.
The four bills killed by the committee were for salaries, operating expenses and other purposes. They concerned the Fish and Game Fund for $97,826; the Natural Resource Reclamation Fund, $1.5 million, and the Air Protection Fund, $1.5 million. The lawmakers also rejected a bill to increase the emergency expenditures cap from $275,000 to $1.5 million.
The senators were about equally divided on the measures which would have allowed Plaskett to dip into the funds, as none of the accurate fund balances were available. The Finance commissioner notified Berry that she could not appear Monday as scheduled because independent auditors were conducing an audit of the Virgin Island finances.
Sen. Violet Anne Golden said, "I could almost predict these funds don't exist" over Plaskett's statement that "we collected them." Golden said passing the appropriations would be "acting in futility, acting on misinformation."
Sens. Gregory Bennerson and George Goodwin agreed with Golden that they should not appropriate funds they were not certain existed. They asked Post Auditor Campbell Malone if he would verify the funds, and Malone said that to date he had not received any balances.
Voting against the Fish and Game, Reclamation Fund and Air Protection fund were Sens. Golden, Bennerson and Goodwin. Voting for the measures was Sens. Berry, David Jones and Roosevelt David.
The committee adjourned for lunch and a caucus at 1 p.m. but did not get under way again until after 6 p.m. Eleven bills were acted on, completing the 23rd Legislature's Finance Budget hearings.
Approved and sent to the Rules Committee were bills establishing an Economic Development Authority encompassing several entities including the Industrial Development Commission, enacting the V.I. Technology Enterprise Act of 2000, an appropriation for the Public Defender's office, a bill for the operation of the V.I. Government for Fiscal Year Oct. 2000 to Sept. 2001 including almost all the government agency appropriations with an amendment affecting the Insurance Guaranty Fund, and the Omnibus Act of 2001.
The meeting adjourned shortly before 10 p.m. A complete account of all the above measures will be in the Thursday Source.
The Rules Committee will meet at 10 a.m. Tuesday, according to Rules Committee Chairwoman Golden.

AUDIT KEEPS FINANCE HEAD FROM COMMITTEE

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In a release from Government House late Monday, Finance Commissioner Bernice Turnbull defended her absence from Monday's Senate Finance Committee meeting, which proceeded without her.
Turnbull said independent auditors were expected to be in the territory on Monday, and she expected to be able to appear before the Finance Committee Wednesday. However, Finance Committee chairwoman Lorraine Berry declared Monday would be the final day of the budget hearings, "do or die."
Turnbull said in part, "Each time I have been asked to appear before the Finance Committee . . . I have consistently said that once the 1998 financial audit is completed, the balances will be forwarded." She said once she had the opportunity to sit with the auditors, she would call and request to reschedule her meeting with the committee.
The committee meeting concluded at 10 p.m. Monday without Turnbull's fund balances in hand.
Referring to one of the many bills before the committee Monday, Office of Management and Budget Director Ira Mills said that a failure to appropriate funds from the Transportation Fund will deny the General Fund the resources necessary to sustain step increases to unionized employees. He noted that at the time the administration proposed the transfer of funds, the balance in the account was $5.7 million and OMB anticipated receiving close to $12.8 million for the present fiscal year.
The committee tabled the bill indefinitely.

AUDIT KEEPS FINANCE HEAD FROM COMMITTEE

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In a release from Government House late Monday, Finance Commissioner Bernice Turnbull defended her absence from Monday's Senate Finance Committee meeting, which proceeded without her.
Turnbull said independent auditors were expected to be in the territory on Monday, and she expected to be able to appear before the Finance Committee Wednesday. However, Finance Committee chairwoman Lorraine Berry declared Monday would be the final day of the budget hearings, "do or die."
Turnbull said in part, "Each time I have been asked to appear before the Finance Committee . . . I have consistently said that once the 1998 financial audit is completed, the balances will be forwarded." She said once she had the opportunity to sit with the auditors, she would call and request to reschedule her meeting with the committee.
The committee meeting concluded at 10 p.m. Monday without Turnbull's fund balances in hand.
Referring to one of the many bills before the committee Monday, Office of Management and Budget Director Ira Mills said that a failure to appropriate funds from the Transportation Fund will deny the General Fund the resources necessary to sustain step increases to unionized employees. He noted that at the time the administration proposed the transfer of funds, the balance in the account was $5.7 million and OMB anticipated receiving close to $12.8 million for the present fiscal year.
The committee tabled the bill indefinitely.