Gov. Albert Bryan Jr. on Thursday vetoed a trio of bills passed by the Senate last month that were meant to put the V.I. Water and Power Authority on firmer financial footing for the rest of the fiscal year and, among other things, restructure language about how and when a state of emergency can be declared.
Bryan’s vetoes came on the heels of two days’ worth of power outages in the St. Thomas-St. John district caused, according to WAPA officials, by a lightning strike, for which utility crews are still assessing the damage and impact.
In a call with the Source Thursday, Government House Communications Director Richard Motto said the state of emergency the governor declared last month to tap into the territory’s Budget Stabilization Fund and get $11 million worth of outstanding utility bills paid had no correlation to the outages, and that the payments initiated by the government have either been made or are processing.
After the state of emergency, the Senate convened in session for two days and added their own proposals, while also trying to tamp down on some of the executive branch’s decision-making power.
In his transmittal letter to Senate President Novelle Francis on Thursday explaining the vetoes, Bryan said, “When considering whether or not to approve a measure, I always contemplate how a proposal will affect the future of the territory, not just considering our current challenges, but also recognizing that future leaders will face a variety of unknown challenges. The health and safety of the residents of this territory should always be the governor’s, as well as the Legislature’s greatest priority, and we must be careful that the laws we set in place today are considerate of the future, and whatever obstacles may come. These knee-jerk statutes may come back to haunt you or one of your colleagues should you ever be blessed with the opportunity to serve our people as governor of these great Virgin Islands.”
Bill 35-0266: An act reappropriating funds to pay current year obligations of the Roy L. Schneider Hospital and Medical Center, the Governor Juan F. Luis Hospital and Medical Center, and the Virgin Islands Waste Management Authority to the Virgin Islands Water and Power Authority and to authorize the Virgin Islands Water and Power Authority to issue a credit to the Roy L. Schneider Hospital and Medical Center, the Governor Juan F. Luis Hospital and Medical Center, and the Virgin Islands Waste Management Authority in lieu of payment to the Government of the Virgin Islands.
In particular, this proposal authorizes credits to be applied to outstanding water and power bills held by the territory’s two hospitals, and the Waste Management Authority. Explaining the math at the April 25 session, Sen. Ray Fonseca said the bill would result in a cost savings of a little over $2 million for St. Croix’s Gov. Juan F. Luis Hospital on utilities, while the Schneider Regional Medical Center would be able to cut about $3.6 million.
In his transmittal letter to Francis on Thursday, Bryan described the bill as an “unhelpful and unnecessary measure at this time.”
“The proposal to forgive an outstanding loan the government made to WAPA by eliminating certain debts owed by the hospitals and Waste Management does not help solve the immediate cash-flow issues crippling WAPA’s ability to operate,” the governor said. “WAPA needs cash in hand to fulfill its obligations and this recommendation does not alleviate that critical need. I have already directed payment of the outstanding utility bills for JFL, SRMC, and VIWMA to rectify these debts owed to WAPA, which will provide WAPA with cash to pay its critical vendors.”
Bryan added that he asked the Senate to address the shortfall payments to these agencies in December 2023, and in the days leading up to the state of emergency declaration.
“The Legislature failed to facilitate a solution in a timely manner,” Bryan said. “WAPA’s critical vendors began to withhold services and without critical vendors, WAPA was forced to curtail power generation, leading to rotating power outages.”
Bill 35-0267: An act authorizing the Government of the Virgin Islands to use the Budget Stabilization Fund to pay obligations of the Virgin Islands Water and Power Authority incurred in Fiscal Year 2024.
At April’s Senate session, Francis said the Budget Stabilization Fund – also known as the “Rainy Day” Fund – had hit $21 million, and that the bill as proposed would tap into it to take care of WAPA’s outstanding debts. Though senators said they were averse to another WAPA “bailout” and cautioned what would happen if the fund was used and not replenished, they also said they needed to act so WAPA didn’t collapse.
Which is what Bryan said he’s already done.
“The Legislature proposes to grant authority to pay certain bills out of the Budget Stabilization Fund, which by law is already explicitly available for use during a State of Emergency. This is a reactive measure that proposes an action that I have already taken. I would also remind the Legislature that the Budget Stabilization Fund was entirely unfunded for many years until our administration began allocating $5 million to this fund each year in every recommended Executive Budget we created beginning with FY 2020 and submitted to the Legislature for approval. Maintaining this fund has always been a priority for my administration, and we will continue to prioritize replenishment of this fund,” he wrote in his letter to Francis Thursday.
Bill 35-0268: An act amending title 23 Virgin Islands Code, chapter 10, subchapter I relating to a declaration of a state of emergency by the Governor and other related issues.
While lengthy, senators said the crux of this proposal is to define how and when a state of emergency can be declared, particularly, they shared in a press conference last month after Bryan’s, when the Senate isn’t in the know about the extent of certain situations, such as WAPA’s financial crisis.
Bryan disagreed Thursday, saying additional limitations outside of what is already defined by law could hamper the territory’s ability to respond in real disasters.
“I could not in good conscience sign this bill into law, as there are several proposals, which if enacted, are dangerous and would significantly impair any governor’s ability to timely respond to disasters in the territory,” he wrote. “The governor declares a state of emergency when he/she believes a disaster has occurred or may be imminent that is severe enough to require the territory aid to supplement existing resources in preventing or alleviating damages, loss, hardship, or suffering. This is an executive power that is established in the Revised Organic Act of 1954 and it would take an act of the U.S. Congress to change or amend this statute,” he said.
