“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
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. Read more »


