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DeJongh, Cabinet Mull Revenue Shortfall, Storm Prep

April 17, 2008 — Gov. John deJongh Jr. and his Cabinet discussed issues ranging from hurricane preparedness to how the Office of Management and Budget is addressing revenue shortfalls Wednesday.
DeJongh and Lt. Gov. Gregory Francis opened the meeting in Government House on St. Thomas by commending his team on how well they have coordinated with each other on policy, according to a Government House press release. They cited renewed working relationships between the Police Commissioner and Attorney General as one example that was yielding positive results.
“I encourage each of you to continue your diligent efforts in addressing the needs of the people of the Virgin Islands, and in working with my office to inform the public on the positive developments that are taking place in each of your department and agencies on a regular basis,” deJongh said.
V.I. Adjutant General Renaldo Rivera spoke about upcoming preparedness exercises in advance of the June 1 start of hurricane season. The tabletop exercises will involve deJongh, Francis and cabinet members. Rivera said the exercise, sponsored by the Federal Emergency Management Agency (FEMA), will bring together a host of federal agencies such as FEMA, the Defense Department, U.S. Army Corps of Engineers and Federal Aviation Administration.
Energy Office Director Bevan Smith talked about steps the government must take to reduce energy costs in government offices. Act 6978 of the V.I. Legislature calls for the government to reduce its energy costs by 20 percent over the next four years. Smith outlined short and long-term strategies to ensure this happens. A public awareness campaign will be launched shortly by the V.I. Energy Office to outline the goals of the program.
Finance Commissioner Claudette Watson-Anderson spoke about work to improve the efficiency and reliability of the government’s financial management system.
“The system, which has had a series of start-up issues since going on line in 2006, is now working at its best as we continue to fine-tune the system,” she said.
With continued training, users of the system will experience a more efficient system of processing government finances, she added.
Budget Director Debra Gottlieb said there is a projected shortfall in revenues this fiscal year, which she attributed to the inability of the government to issue property tax bills. She pegged the shortfall at over $30 million dollars.
“What we have seen in terms of a shortfall in revenues has led to our developing a plan to reduce spending,” she said. As a result, agencies will see somewhere between a two and five percent cut in their remaining allotments in the current fiscal year, she said. “We must take some steps to address this shortfall in revenues and at the same time, hold the line on spending until budgeted revenues are collected from property tax bills that will be sent out sometime later this year,” she said.
Gottlieb urged the Cabinet members to be ever vigilant in monitoring spending patterns in their respective departments and agencies.
The Cabinet will come together again in late July.
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