Fiscal Insanity: If Only You Practiced What You Preached
Without swift, tough action from the Legislature, layoffs will be the least of our problems
Anyone remember these words?
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“I cannot support the further issuance of debt under the allusion that this will solve our problems. We must develop a comprehensive solution.” – Gov. John P. deJongh, Jr., 2007 State of the Territory Address
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We remembered this week when the governor’s financial team told the Senate that without another $100 million in borrowing that the government will run out of money by June.
In what has become a familiar tactic, the Senators heard hours of alarmist testimony concluding with a warning that the only answer is to swiftly approve the additional borrowing when the Governor sends down the bill.
If they don’t, we are told, services will halt and people will lose their jobs.
Let’s put aside for a moment the recent news about the near “junk bond” status of the existing debt. It may be folly to think the markets would extend any more credit even if the request was granted. Let’s not consider the fact that all the viable revenue streams, most visibly property taxes the government has chosen not to collect, are already committed to other expenses and the amount of revenues that are being collected are continuing to fall. And while we’re at it, let’s forget about the fact that for the past three years, appropriations have exceeded available revenue including this year FY 2010, when appropriations were $300 million higher than available resources.
Senators, stop this madness now. Here are the facts and the next steps and please note borrowing more money is nowhere on the list.
- The “hiring freeze” is a myth. We have shown evidence that high priced hiring has continued since the first of this year, into non-essential positions with high salaries. Every day we get reports of more positions being filled while an estimated $272 million in owed retroactive goes unpaid. Stop hiring. Period.
- Millions of dollars in funds are locked in appropriations for projects that have not begun. Release them immediately and apply them to operating expenses. Yes, it is that simple – we’re out of time for posturing about your pet projects.
- Stop playing games with the stimulus money.
- Demand an accounting from department and agency heads on how they are spending their lump sum budgets. Let them prove their departments are “stretched to their limits” as Office of Management and Budget Director Debra Gottlieb told the Senate.
- Quit pretending that the uncollected 2007-2008 property taxes are a factor in solving the financial crisis in this fiscal year. Even if the enormous bureaucracy at Revenue could manage to get the bills issued, the notion of collecting two years of back taxes in this economy is laughable.
- Cancel ALL non-essential (and we mean ALL non-essential) travel, meetings, conferences, catered lunches and other expenses immediately. And based on what we know about where you’re traveling and for what, that should eliminate just about all of it.
And, getting back to the Governor’s reference to “allusions” (should be illusions by the way), let this be the very last year, whoever sits in the Legislature, that a budget based on projections of non-existent, illusive revenues, is ever approved. Gottlieb told senators Monday that DeJongh based the 2010 General Fund budget proposal on anticipated revenues of $854 million – but the revenue projections revised again in January now stand at about $688 million. If this is a surprise, then the negligence in financial planning of this Administration is even worse than the current situation indicates.
The financial future of the Territory has already been mortgaged almost beyond recovery, thanks to the assignment of now uncertain cover-over revenues to Diageo. Should heightened political pressure force any downward revisions of the rebate formula by the US Congress, we can just about close the doors.
Senators, do what you can to salvage the present. Demand some answers on how our money is being spent and make the hard decisions about how to get us out of this mess.
If you don’t, the prospect of layoffs will be the least of our problems.
Peter Abbot- I totally agree with you, the only governor in history that was going to clean up the mess was Cyril Emanuel King unfortunately he wasn’t with us for a long time. But none has been true to us they say one thing to get your vote then their jackasses give them bad advise. Maybe that’s what we need
sorry I didn’t finish my thought. Maybe that’s what we need for us to get things right have the US stop sending us money.
It appears we need to come up with some viable candidates with integrity. Can anyone name someone we might draft in to service. I’m willing to get signatures but for Whom?
Nellie O’Reilly, let’s write her in.
Nellie is a Lioness, she has my vote.
@ ‘ENOUGH’: Whereas your vote of confidence is appreciated and I
agree that this government could use the expertise,dedication and
trustworthiness of many of its former employees,I,personally,am
not inclined (for many reasons) to consider re-entering government service.
Don’t get me wrong,I have always regarded being a public servant and doing the work of the people to be an honorable profession.I was fortunate to have met and worked with,and for,many Virgin
Islanders and non-Virgin Islanders….some of whom are my friends to this day.
In response to the many opportunities and hospitality afforded me while living there,I gave the best years of my life to the government and the people of the U.S.Virgin Islands.For me St.Thomas will always be my home away from home.My children were born and raised there and that is where my heart is.But that was then and I’m happily retired now.
Rather than employing new hires at exhorbitant salaries,perhaps the governor should consider utilizing the knowledge and experience of former government emplyees (on a contractual basis)
in bringing about a sense of order and direction in the accomplishing of the people’s business.
I wish the people of the Virgin Islands well!!
@ ‘JUNE’: You are so right about Gov.King’s getting ready to ‘clean up the mess’ that permeated government when he came to office.I can’t speak for St.Croix, but on St.Thomas he was aware that there were many government employees from various departments (mostly from Education)who were frequenting a famous watering hole in French Town during working hours and he was zeroing on them like a laser.He and his Administrator,Levron Sarrauw..(not sure of the spelling),were like bloodhounds walking the streets of Charlotte Amalie looking for the goof-offs.It was such a shame Governor King was taken away from us at a time when a person of his caliber was so much needed.Had he lived and was relected I doubt government would be in the bind in which it finds itself today.But,then came the Juan Luis administration which took us all on a joyless 6 year ride.
While I do admire Senator Orielly. I don’t think she is prepared to be Governor as yet. Give her some more time and she has my vote. I do feel she would make an excellent LT Governor in the upcoming election. Once she has the right Gubernatorial candidate.
And yes………I was told that Mapp is running with LOLO but he still has his eyes on Juel Molloy. I don’t think either LT will help his campaign. Oh well, I will wait and see.
I think you missed the point. If you look for one of those well seasoned candidates with a lot of experience you get a Politician
(the criteria was an intelligent person that loves the VI and it’s People.) All of the above are washed out, over the hill and carrying too much baggage. Obviously deWolf was ready, ready to steal and disregard the needs of the people.
POLITICS- Poli- many, Tics- bloodsuckers.
I agree, Sojourner.
Nellie may not have under her belt what so many others have, but I consider that an attribute.
Nellie would pull-off the leadership position of Governor.
Nellie would not start a “war” between the VI & PR.
Nellie would get the street lights operating before remodeling her personal residence.
Nellie would hire only essential staff, as she wouldn’t need to employ so many to retain the lies & hidden agendas.
Nellie would fire the public servants who don’t serve.
Nellie would be my choice. She may not have experience, but it seems all that come before us tend to have bad experience.
Regardless of how you people feels. We have dedicated Virgin Islanders whether you consider them wash up or other; the most important thing to remember their hearts and dedication is to the betterment of the Virgin Islands and it’s people. We can’t leave it up to an unknown who have no track record of doing any good for this community. We need someone with the cohones to be able to jump into the seat of governor and move things forward from day one. Look what’s happening with Obama and congress and senate. We need a seasoned politician that understands the political climate of the VI and have leadership skills to pull the right people to the table and workout the terrible mess where in, that’s why I am fearful of any unknown so-call new breed kind of politician. He/She may not have the knowledge or political skill to handle tough times and the senate.
@ Sojourner Truth
Can you list the candidates with baggage and give us some examples of their baggage.
Donastorg 2010!
Dream on, Foncie. Your wish may come true.What will you do to make a positive difference?
Donastorg for Governor and Springer for Senator in 2010. That’s what I’m talking about.
Okay, only if I get my vote paid for. Keep the t-shirts and free food. I want cash! Cash or no vote!
When this administration took office, payroll was $16 mill a pay day. It is now topping off at $24 mill. I listened to the hearing and the financial team equated the increase to union salary increases. I also heard one of them say its 435 (or there about) employees hired since the hiring freeze. That is a lie! It is more like 435 people hired since the start of this fiscal year. How many union employees got raises last year?
Anonymous 10:15 pm,
If you want to be paid for your vote in cash or appliances. You need to join DeJongh camp. De say 2006 election run him abou 1Million dollars. I sure de willing to give u a several hundred $$$$ for your vote. That’s how despersate they are dis time around.
Has anyone ever considered that Gov. King was taken out at a critical time in our “development”? Think about the knowledge he was privy to while he worked at the interior. Consider the like minded people he was associated with. What happened to those people? I know of several who were either silenced economically, discredited professionally, or laying in the ground. They were independent minded thinking people.
If we can feed ourselves, that is the most important things isn’t it. There are people whose voices have been subtly “removed” from our path of destiny. If we we can focus on issues like locally generated agriculture, energy production, waste reduction, status/self determination, honesty, willingness to perform public service, protection of our natural resources for at least 7 generations,etc. we will be a force to reckon with on many levels.
We need to activate ourselves. We do have the power to change the destiny “they” have planned for us. We have access to all this information. It is in our blood. We must start to focus our attention on survival and not just existence. The PTB, know if they can keep us emotionally paralyzed, they can steal the bacon.
You need to stop the talk! Action speaks louder than words, and only the small group of the people with the same mindset is listening. This group just make noise. These negative people are not important. Their silly talk just amuse me.