The V.I. government's critical financial condition, which threatened the layoff of hundreds of government workers this fall, could worsen before the end of the first quarter of the year 2000, Office of Management and Budget director Ira Mills said Sunday night on public television’s "Behind the Headlines" program.
"Unless drastic steps are taken to reduce the size of government," Mills said on WTJX-TV/Channel 12, when the funds raised by the recent $300 million bond float run out, it will be back to square one in terms of the government’s ability to cover its operational costs.
In order to "manage what we have and avoid the payless or delayed payday," he said, the government simply must "spend less than the revenues it takes in."
Decisive action will be needed to reduce the government workforce, he said. The steps which must be taken "will not necessarily please everyone," he said, "but they must be effected to bring about change."
According to Mills, Gov. Charles W. Turnbull and key fiscal advisors have begun to revisit options as they look toward downsizing the government. "A reduced work week is one concept being discussed," he said. In other financially strapped jurisdictions, he said, management and employees have struck an agreement whereby the work week will be reduced, but health insurance and retirement benefits will not be affected in terms of employee contributions.
Despite discussions since Gov. Charles W. Turnbull took office nearly a year ago of the need to cut payroll and reduce the workforce, there is little evidence of any significant changes have been made.
Mills mentioned the often-cited idea of some work force reductions via early retirement. An early retirement incentive plan referenced in Turnbull's fiscal year 2000 budget, and for which money was allocated from the $300 million bond issue, has not been formalized by either the administration or the Legislature.
