The first effects of the federal budget sequester on the territory will likely be felt in the travel industry, impacting millions of passengers who arrive in the U.S. Virgin Islands by air and sea, Gov. John deJongh Jr. reported after receiving a briefing memo from federal Customs officials.
The federal budget cuts, called the sequester, which are forcing an $85 billion across-the-board reduction in federal spending, went into effect Friday. Those impacts have already begun to be felt in the territory with two announcements Wednesday by the National Park Service.
To deal with a 5 percent budget cut, the parking lot at the Christiansted National Historic Site will close at 3:30 p.m. every day of the week beginning Sunday. The lot will continue to open at 8:30 a.m.
The early closure of the lot will continue until further notice, according to the announcement.
The Visitor Contact Center at the Salt River Bay National Historical Park and Ecological Preserve on St. Croix will be open from 9:30 a.m. to 4 p.m. only on Thursdays. This one-day-a-week opening will be effective until June 15, when the facility closes for the season.
Another V.I. government agency has been warned to expect budget reductions in its federally funded environmental programs.
In a statement released Thursday, deJongh said he was advised by officials of U.S. Customs and Border Protection that operations at the territory’s airports and seaports will be hit by reduction in staffing hours that will likely affect service.
DeJongh said he received the briefing memorandum from David Aguilar, deputy commissioner of CBP, which outlined the effect of the budget cuts on the agency’s field operations.
Aguilar wrote in the memo: “It is clear that these unfortunate budget cuts will result in furloughs, reduction in overtime and a hiring freeze which would equate to the loss of up to several thousand CBP officers at ports of entry, in addition to significant cuts to operating budgets and programs.”
The memo was also shared with the trade and travel industry.
DeJongh said the cuts could not have come at a worse time for the territory, given the increased number of visitors expected during the peak travel seasons.
"The most notable impact will be increased wait times at our airports and could be on the order of 50 percent or more, with larger airports experiencing peak waits up to three to four hours,” the governor said.
The briefing memo also spoke of increased processing time at marine ports and decreased service levels in cargo operations.
The governor pointed out that the cuts are taking place against the backdrop of significant growth of international travel and trade.
“International trade alone has increased by 12 percent over the last three years and is expected to increase by an additional 5 percent in the current fiscal year,” deJongh said.
Also this week Regional Administrator Judith Enck of the U.S. Environmental Protection Agency outlined several federal programs operated under the Department of Planning and Natural Resources that are slated to be impacted by the sequestration. As of Tuesday, the programs that will be affected include beach protection, nonpoint source pollution, pesticides enforcement, pesticides program implementation, pollution control, public water system supervision, state and local air quality management, underground injection control and drinking water infrastructure assistance.
In correspondence to DPNR Commissioner Alicia Barnes, Enck noted that, “as a result of sequestration, the agency’s overall budget will be reduced for the remainder of the fiscal year, impacting our employees and our programs. Programs such as the Clean Water and Drinking Water State Revolving Funds and grants for pesticides enforcement will be affected by a reduction in funding.”
DeJongh said commissioners and agency heads in the territory are developing plans to offset the losses that will be felt in programs provided by the U.S. Departments of Education and Human Services as well as other programs, such as Headstart. Initial estimates projected that anywhere between $10 million and $13 million could be at risk this fiscal year, the governor said.
V.I. Delegate to Congress Donna Christiansen testified before a House hearing Wednesday, calling for an end to the sequester and provide more funding for federal programs in the territory.
Christensen said she supported the Congressional Black Caucus budget which would “cancel the sequester, offer options for raising a significant amount of revenue and ‘invest in infrastructure, housing, job training and modernize our military.’”
