Senate President Almando "Rocky" Liburd and the other members of the Twenty-fourth Legislature, Reverend Clergy, Lieutenant Governor Gerard Luz James II, Delegate to Congress Donna M. Christensen, Presiding Judge Maria Cabret and other members of the Territorial Court, Judge Thomas Moore and other members of the federal judiciary, members of the Cabinet, other agency heads, distinguished guests, my fellow Virgin Islanders and friends:
I am honored to appear before the Legislature and the people of the Virgin Islands this evening to deliver my fourth State of the Territory Address, in accordance with the Revised Organic Act of 1954, as amended.
In the wake of the evil terrorist attack on America on September 11, 2001, I would be remiss to say one word more in this address without making note of that infamous event. Like all Americans, Virgin Islanders were in turn shocked, angry and then resolute, as we watched the violence from our television sets. We will continue to pray for those who innocently lost their lives, including our own Staff Sergeant Maudlyn White, and the loved ones they left behind. We here in this Territory stand firmly with all Americans in our resolve to fight the war against terrorism until the very end, confident that, with God's help, we shall prevail.
Ladies and Gentlemen, in delivering this address, I am reminded that, within days of taking office in 1999, it was my duty to advise the Legislature that the state of the Territory was precarious, that the economy was weak, and that the financial condition of the government was grave. In my second address in 2000, I reported that the state of the Territory was better than 1999. Last year in 2001, I reported that, while we had a long way to go, the state of the Territory was improving.
Tonight, I am pleased to report to you that — while our economy, along with the rest of the nation, faces new challenges in the aftermath of the events of September 11th — the state of the Territory, for the third year in a row, has continued to improve and grow stronger. Despite an unfortunate and unacceptable increase in homicides, serious crime overall has continued to decrease; tourism has shown remarkable resilience in the face of recession on the mainland and the great anxiety caused by the recent terrorist attacks; and this government has made significant further progress in getting our fiscal house in order, moving toward a balanced budget, and meeting our obligations to our citizens and our workers. But while we can be justifiably proud of our successes, we must, in these uncertain times, maintain our vigilance to protect our hard-won gains and to conserve the blessings that God has bestowed upon us.
In preparing for and confronting the new challenges of this year, it is important to remember how far we have traveled together since this administration first assumed office in January 1999 and how much stronger we are now. Back then, the economy was stagnant, revenues were declining, spending was out of control, debt was climbing, tax refunds and bills were unpaid; promised salary increases for government workers, including teachers, nurses, police officers, firefighters and others were unmet, and the specter of bankruptcy and a federal take-over loomed large on the horizon. While it was not always easy and not always smooth, over the last three years we have restored fiscal discipline, earned the respect of the federal government, developed a five-year economic and fiscal recovery plan, generated record revenues, paid delinquent tax refunds and overdue vendor bills, reduced our debt, paid our government workers their long-delayed increases, and laid the foundation for a broad-based recovery that can survive the uncertainties on the mainland.
This turnaround did not just happen. It was the result of the conscious decisions and policies of this administration. When I assumed office in January 1999, I stated that the time for business as usual was over. And so we immediately went to work to effect positive change and to right the Ship of State. We have stayed the course and steered the wheel of government with a steady hand ever since.
Our first task was to obtain a true and accurate assessment of the government's finances. The task was made difficult by the lack of audited financial statements required by the federal Single Audit Act. But it soon became apparent that the government was technically insolvent, evidenced by a structural deficit approaching $100 million, total debt in excess of $1 billion, and serious cash flow imbalances which caused the government to delay a scheduled payday.
To prevent a financial collapse, we took decisive, even painful, steps to cut government spending, impose a strict hiring freeze with limited exceptions, and downsize the government without resorting to massive layoffs which some people had strongly urged. We submitted a revised budget that represented a 15% reduction from the previous year. We refinanced our debt to pay our bills and provide needed working capital to buy time while our economic recovery plan took effect. And we took steps to reorganize and streamline the government, introduce a more business-friendly culture, attract new investments to our shores, promote tourism, and generate new sources of revenue – both at the local and national levels.
PROGRESS IN 2001:
CONTINUING THE PROGRAM OF FISCAL RESTRAINT, DEBT REDUCTION, ECONOMIC GROWTH AND NEW REVENUE GENERATION
Transforming Our Workforce
The success of our efforts to "right-size" the government work force, to grow the private sector and to encourage economic diversification is demonstrated by the labor statistics. Total executive branch employment had increased to nearly 12,000 workers when I first assumed office. As a result of the hiring freeze I imposed by executive order in June of 1999, executive branch employment declined to 10,240 by the end of 2000. More significantly, we have maintained our fiscal discipline throughout the term of this administration. By the end of 2001, total executive branch employment declined to 9,275 – a 10% reduction from the previous year and a 20% reduction from the levels I inherited.
I am pleased to report that these necessary reductions were accomplished through attrition and voluntary retirements. While certain critical positions have had to be replaced, the Division of Personnel has processed only 399 Notices of Personnel Action (NOPAs) this past year. These actions are undertaken only after careful review and a detailed needs assessment. Most important, 86% of these appointments were made through the government's personnel merit system.
While the executive branch led the way, overall government employment, including all three branches of government and the independent agencies and instrumentalities, declined to 11,200 workers this past year – a reduction of almost 700 workers from the previous year. We now have the smallest government workforce in over 25 years. These reductions are a necessary first step to eliminate bureaucratic overstaffing and to build an efficient and productive government workforce. Moreover, I am pleased to report that our pro-business policies have allowed us to accomplish this fundamental restructuring without an adverse impact on total employment.
Largely as a result of the growth in the construction and manufacturing sectors on St. Croix, private sector employment in the Territory increased by more that 1300 jobs over the year before, generating an increase in overall employment from 46,400 jobs to 47,500 jobs. Thus, while the economy grew and the Virgin Islands' workforce expanded, the engine of growth has been, as it should be, the private sector. Significantly, the relative size of the government workforce has dropped from almost one-third of total employment in 1999 to less than 27% today. This strategic transformation, carried out effectively but humanely, will strengthen our ability to withstand the economic uncertainties on the mainland and will help plant the seeds for future
stability and prosperity.
New Revenue Sources
In conjunction with the commitment to maintain fiscal discipline and spending restraint, the government has also made significant progress in its efforts to generate new sources of revenue, both at the local and federal level, and to reduce the crushing burden of the Territory's accumulated debt. Through aggressive collection efforts by the Bureau of Internal Revenue (BIR) and the success of the new Economic Development Authority (EDA) in expanding the financial services industry and attracting other new businesses in the Territory, total tax collections increased from $484 million in Fiscal Year 2000 to over $518 million in Fiscal Year 2001 – an impressive 19% increase.
Similarly, as a result of our successful lobbying efforts in Washington, our rum excise tax revenues have continued to rise to record levels. This past spring, I received commitments from Senate Majority Leader Tom Daschle, as well as from leading Republicans and Democrats on the Senate Finance Committee and House Ways and Means Committee, to renew and extend the increase in the rum tax cover-over formula that we successfully persuaded Congress to pass in November 1999. The rum tax extension has already passed the House, and passed the Senate Finance Committee just before Congress adjourned this past Christmas. We expect Congress to complete action on this important measure early this year when it returns for the new session. Extension of the new formula will mean an additional $18-20 million for the territorial government every year it is in effect.
The total amount of rum revenues received by the Territory is not only dependent on the tax formula approved by Congress, but is also dependent on the total amount of rum produced and sold by our local distillers. For that reason, the government has vigorously participated in the development of our nation's trade laws to protect this vital industry. I am pleased to report that the House of Representatives recently voted to protect the Virgin Islands' rum industry from foreign rum imported from the Andean countries of South America.
Just as important, this administration has been working with the local industry and with the U.S. Environmental Protection Agency (EPA) to secure a 20% increase in the amount of rum effluent that can be discharged from the local plant's outfalls. This amendment to the plant's environmental permits would allow the distillery to increase its production and generate as much as an additional $13-15 million in rum taxes for the government.
We have also worked closely with our friends in Washington, both Republican and Democratic, to ensure that any economic stimulus legislation enacted by Congress fairly treats the Virgin Islands as well. To this end, I am pleased to report that the Senate Finance Committee voted late last year to extend federal income tax rebates, paid for out of the federal treasury, to all Virgin Islands' taxpayers who file Virgin Islands' tax returns, regardless of whether they have any federal income tax liability. This amendment, which we have been working on diligently with our Delegate to Congress Donna Christensen, would provide significant financial relief to our residents, while pumping some $20-22 million in federal stimulus funds into our economy. While we were disappointed that Congress adjourned last month without completing action on the National Stimulus Bill, we are hopeful that negotiations between the two national parties and between the Congress as a whole and the Bush Administration can be quickly resumed and successfully concluded when Congress returns.
Similarly, we have also made major progress in our efforts to have the federal government share the cost of the Earned Income Tax Credit (EITC) program in the Virgin Islands. While this program has provided substantial financial relief to our low-income residents over the years, it has also been a financial drain on the local government, costing some $15 million annually. In an innovative and creative approach, which is now supported by the other U.S. territories, we have proposed that the federal government pick up 60% of the cost of the program by allowing Virgin Islands employers to advance 60% of the estimated amount of a qualified employee's tax credit and deducting that amount from the Social Security tax payments the employer must file with the U.S. Treasury. While our proposal will likely require a technical amendment to an existing provision of the U.S. Internal Revenue Code, it has been positively received by key leaders of the Senate Finance Committee and the House Ways and Means Committee, and we hope that the technical amendment will be adopted this year. If successful, our cost-sharing proposal will save the Virgin Islands some $10 million a year, while speeding up benefits to our citizens with the greatest needs.
Fiscal Accountability
In addition to our new sources of revenue, the government has engineered what can almost be described as a revolution in our relationship with the federal government. Prior to my assuming office in 1999, the Virgin Islands Government had completed only one audited financial statement – required by the federal Single Audit Act – since 1984. The lack of audited financial statements led to threats by several agencies to cut off federal funding and to seek reimbursement of funds previously granted but unaccounted for.
Upon assuming office, I directed the Director of the Office of Management and Budget (OMB) and the Commissioner of Finance to rectify this situation. Working cooperatively and arduously to reconstruct records from previous years, the Department of Finance and OMB have completed – in less than three years – the required single audits for Fiscal Years 1995, 1998 and 1999. In addition, the required audit for Fiscal Year 2000 should be completed by the end of this month. After meeting in Washington last May, we successfully negotiated a comprehensive agreement with the Offices of the Inspector General for all of the federal agencies that provide federal funds to the Virgin Islands to provide simplified audits for Fiscal Year 1996 and 1997.
Thus, while previous administrations were able to complete only one audit in fourteen years, this administration will have completed seven full audits in my first term. This will allow the government to achieve, for the first time in its history, full compliance with the strict financial accountability standards of the Single Audit Act by the end of this year. Compliance with the Single Audit Act will not only protect important sources of existing federal funding, but it will also establish the foundation for seeking additional discretionary federal assistance in coming years.
The progress we have already made in assuring fiscal integrity and financial accountability is reflected in the significant increases in federal assistance we have received from Washington since this administration took office. In Fiscal Year 1998, the Virgin Islands received $68 million in federal grants and funds. In Fiscal Year 1999, the government received $97 million. In Fiscal Year 2001, federal assistance increased by 25% to $123 million.
Restructuring and Elimination of Government Debt
One of the most perplexing problems faced by the government when I took office in 1999 was the massive amount of accumulated debt that threatened to block the road to economic recovery — particularly the $200 million owed to the Federal Emergency Management Agency (FEMA) for emergency loans that kept the government afloat in the aftermath of Hurricanes Hugo and Marilyn. The solution to this problem was made all the more difficult because the previous administration had exhausted its administrative remedies and had signed a binding legal agreement to repay the $50 million Hurricane Hugo loan.
After several payments under this agreement helped cause the cash flow crisis that led to the delayed payday in the spring of 1999, this administration negotiated an agreement with FEMA to suspend debt service payments while we explored alternative remedi
es. As I reported to you in my State of the Territory Address last year, Congress approved in 2000 the first phase of our complex and never-before-tried plan to cancel the Hugo loan by making it eligible for debt relief under the Federal Credit Reform Act.
This past year, Congress approved the second phase of our plan by appropriating the necessary funds to complete the cancellation process at a fraction of the face amount of the debt. I am pleased to report to you tonight that the U.S. Department of the Interior two weeks ago transferred the appropriated funds to FEMA in full satisfaction of our obligation. Thus, after a 21/2 year effort, this burdensome Hugo debt has been entirely removed from our books.
We are now hard at work to resolve the burden of our Hurricane Marilyn debts. As I have previously reported, the Director of OMB last June filed a petition to cancel the $160 million outstanding balance on the Hurricane Marilyn loan under the FEMA regulations. While I am hopeful that our carefully prepared petition and supporting documentation will result in complete forgiveness of the Marilyn loan, this administration is prepared to seek additional remedies under the Federal Credit Reform Act, to the extent they might be required, to complete the cancellation of the entire debt.
In addition to our success in restructuring and eliminating our FEMA debt, we have also made further progress in canceling a $10 million debt owed by the government to the Federal Bureau of Prisons for housing scores of our prisoners in mainland facilities since 1989. Under an agreement negotiated over a year ago by Attorney General Iver A. Stridiron, OMB Director Ira Mills and Delegate Donna M. Christensen, the Federal Bureau of Prisons agreed to drop their claims against the Virgin Islands Government under rarely used provisions of the Federal Debt Collection Procedures Act in exchange for an agreement to transfer the V.I. prisoners out of the federal system. While most of these prisoners were repatriated to the newly renovated facilities at Golden Grove last year, it was necessary to transfer a number of hardened criminals to other maximum-security facilities on the mainland. I am pleased to report that Attorney General Stridiron successfully negotiated an agreement with the Commonwealth of Virginia this past year, and the last prisoner remaining in the federal system was scheduled to be transferred this morning. This will allow the Attorney General of the United States to act on the recommendation by the Federal Bureau of Prisons and to complete the cancellation of this debt as well.
Of all of our fiscal recovery initiatives, however, probably the most important are the self-help initiatives we undertook here at home. Together with the success of our efforts to grow the private sector and to diversify the economy, the Bureau of Internal Revenue, under the strong and effective leadership of Director Louis Willis, has computerized its operations and instituted aggressive collection efforts to ensure that all taxpayers pay what they properly owe to the government. As a result of these efforts, the bureau increased its collections by almost $100 million in Fiscal Year 2001. Notwithstanding the uncertainties of the present, based on the most recent economic data and anticipated success in collecting past due taxes, the bureau projects a further increase in tax collections in the present year by an additional $25 million.
The success of these efforts will enable the bureau to implement the income tax rate reduction credit for all eligible taxpayers who file 2001 tax returns in full compliance with the federal Income Tax Relief Act of 2001.
While we continue to move forward and while we continue to make steady financial progress, we cannot take our success in these critical areas for granted. We must not, we cannot, indeed, we dare not return to the days of reckless spending. The recent actions by this body to over-commit our resources cannot be sustained and can no longer be permitted to continue. I cannot and will not be a party to such actions, and I will continue to line-item veto any appropriation for which there is no source of funding. To do otherwise will be irresponsible.
Tonight I also renew my call for the passage of the lump sum budget. The line-item budget passed by this Legislature has already hampered and stymied the operations of not only the executive branch, but the judicial branch as well. It is curious, at best, that the Legislature has not adopted this practice for itself. Regardless of motivation, however, it is in the public's best interest that this body immediately honor my request for the lump sum budget.
THE AGENDA FOR THE FUTURE
A fiscally responsible government that provides efficient services in a business-friendly environment is an essential pre-condition to attracting new investors and economic growth to the Territory. I am pleased to report that the success of our efforts to restore fiscal solvency, financial accountability, and budget integrity has set the stage for future prosperity.
Protecting Tourism and Promoting Economic Development
Tourism continues to be our number one revenue generator and the key to our present and future economic success. We were on the verge of another record year for cruise ship passenger arrivals when the events of September 11th took place. This sector of the industry, however, has showed strong resilience and, despite the tragedy, still finished with a 4% increase in passenger arrivals over the previous year.
The West Indian Company, Limited (WICO) has forecast that this coming year will quickly return to pre-September 11th conditions as several mega ships will enter our market, replacing older and smaller vessels. More importantly, all the cruise lines are responding to passenger demands for more North American-based travel and for calls at American flag ports. These homeland cruising programs feature port-to-port itineraries and will bring significantly more passengers to our shores in the coming months.
We have also worked hard this past year, particularly since September 11th, to ensure a robust and growing hospitality industry for our overnight visitors. In 1999, I pledged to significantly increase the monies spent on advertising the Territory and to market each island separately. In 1999, the Department of Tourism spent $4 million for national advertising. In 2001, the Department almost quadrupled this amount by spending more than $15 million. As a result of our innovative and aggressive tourism promotion and marketing programs, airline arrivals increased over the previous year.
In the aftermath of the terrorist attacks that devastated the travel industry nationwide, we worked closely with our partners in the private sector and the airlines on a recovery plan. American Airlines now has four flights daily with five on Thursdays, Saturdays and Sundays. Delta has returned its two daily flights, United Airlines is back with four weekend flights and U.S. Airways is providing additional seats with larger aircraft. Moreover, we expect to be the beneficiary of current low fares, competitive hotel packages, and airline promotions. Here, too, our reputation as an island of comfort and stability under the protection of the American flag – reinforced by our national advertising campaigns – will give us an important advantage over foreign jurisdictions in promoting and expanding our tourism base.
Our efforts to promote and expand tourism will also benefit from the ongoing private-sector investment in new hotels, hotel improvements and expansions, and other tourism-related ventures, such as the $75 million Ritz Carlton Hotel and Timeshare expansion, the approved $100 million Marriott Timeshare development, the planned $165 million Botany Bay development, and the $80 million Carifest Theme Park on St. Thomas.
We have also been working closely with major developers to launch over $1 billion in hotel and tourism projects for the island of St. Croix. These include the Robin Bay Associates plan to develop the $500 million Seven Hills Beach Resort and
Casino, including three hotels with 680 rooms, 700 time share units, an 18 hole golf course, casino and convention center. While this project is awaiting various regulatory approvals, the Public Finance Authority has allocated $15 million in tax-exempt private activity bonds to the developer to jump-start the project. We are also working with Golden Gaming LLC to develop another major destination resort on St. Croix that would include up to 1200 hotel rooms, time share units and villas, another 18 hole golf course, casino and convention center. And the PFA has entered into a memorandum of understanding with Hyde Park Partners for the construction of a $50 million hotel on the South Shore.
One of the reasons for the success of these efforts to attract new investors has been the newly invigorated Economic Development Authority (EDA), which was created as part of this administration's government reorganization plan. We have also been aggressive and creative in taking advantage of an important economic development tool which Congress authorized in 1984, but which has never been used before in the Territory. Under an amendment to the U.S. Internal Revenue Code, the Territory is authorized to issue, through the Public Finance Authority (PFA), federally tax-exempt private activity bonds, which are repaid solely out of the revenues generated by the financed project. In addition to the hotel projects, the PFA has authorized $63 million in private activity bonds to help finance the construction of the $500 million coker plant, which is needed to keep HOVENSA competitive with mainland refineries.
We have also enjoyed success in the last year in further developing the financial services industry in the Virgin Islands and the new jewelry manufacturing industry on St. Croix. We are also working with Delegate Christensen and the Congress on developing new federal tax incentives to attract additional U.S. investment to the Territory.
Building the Foundation for Future Growth:
Capital Improvements and Protecting the Environment
The increase in tourism and our capacity to sustain future economic growth require continuing investment and improvements in our public infrastructure. Last year, the government started and/or completed several major capital projects, pumping tens of millions of dollars into the local economy.
On St. John, the Department of Public Works completed the Cruz Bay wastewater facility. The department also completed over $3 million worth of road projects throughout the island, as well as the installation of drainage culverts along Route 107.
On St. Thomas, Public Works completed several flood control hazard mitigation projects, which will protect the Sub-base, Contant, Lindberg Bay, Frenchtown and Estate Thomas areas from flooding. Last year, the Department of Housing, Parks and Recreation completed outdoor lighting projects at the Frenchtown Ballpark, Emile Griffith Ball Park and at the Charlotte Amalie High School athletic field.
Much of our capital spending this past year has focused on St. Croix, including significant spending on the administration's priorities such as education, health, fire and police, and the emergency services. In addition, twelve ballparks and recreation centers on the island have been renovated or are in the process of renovation.
The Virgin Islands Port Authority (VIPA) continued to make major progress this year in rebuilding the Henry E. Rohlsen International Airport. The $40 million terminal expansion and renovation is virtually complete, and the $18 million extension of the airport runway to 10,000 feet is scheduled for completion in July of this year. This expansion will allow airlines to fly jumbo aircraft directly to the St. Croix from tourist-rich areas on the West Coast of the United States, as well as from Canada, Europe, and South America.
In the coming year, the government will commence several large capital projects throughout all three islands, some of which have been delayed or in the planning stage for many years. In addition, the government will undertake a new program to repair potholes on local roads throughout the Territory.
On the island of St. John, the Department of Public Works, with funding from the Federal Highway Administration (FHA), will complete phase II of the road from Calabash Boom to the Salt Pond. After careful review, the FHA issued advance construction approval for the Virgin Islands Port Authority to select contractors to start construction on the long awaited $16 million Enighed Pond port facility project. This important and long delayed project will be financed through the innovative Grant Anticipation Revenue (GARVEE) bonds which will be issued early this year by the Public Finance Authority.
On St. Thomas, the Department of Public Works will commence $6 million of resurfacing, rehabilitation and reconditioning of federal roads, begin a comprehensive rehabilitation of the Long Bay-Mandela Circle-Havensight corridor, and complete the $13 million first leg of the Congressionally authorized project. In addition, the department will also complete the long awaited Nadir Bridge flood control project. In conjunction with the Enighed Pond cargo facility on St. John, the Port Authority will also commence construction of a full service ferry and marine terminal at Red Hook which will also be financed out of the GARVEE bonds.
On St. Croix, the Department of Public Works has five major projects that will improve the infrastructure for future economic growth, including the Christiansted Bypass at a cost of $18 million, the Christiansted Boardwalk Phase II at a cost of $3.5 million, the Mon Bijou Flood Control Program at a cost of $10.6 million, island-wide paving at a cost of $6 million, and the interim replacement of the Anguilla Landfill at a cost of approximately $6 to $10 million. In addition, construction will commence on a one-stop center for employment services on St. Croix, provided by the Department of Labor and other government agencies. The Department of Agriculture is also scheduled to complete construction of the new fishmarket on St. Croix, which will benefit local fishermen and fish vendors.
Last year, the Virgin Islands Water and Power Authority (WAPA) completed or substantially completed several disaster mitigation projects funded by FEMA. Underground feeder lines from the Richmond Power Plant to the Roy L. Schneider Hospital and to the Henry Rohlsen Airport on St. Croix are now substantially complete. Underground feeders from the Krum Bay power plant to the Schneider Hospital are also substantially complete, while the Cyril E. King Airport feeder on St. Thomas was completed earlier in the year. Completion of these projects will enable WAPA to better survive and recover from future disasters.
In laying the foundation for future economic growth, we must be careful to protect our incomparable and priceless natural resources and to invest in our environmental infrastructure. In this important area of government, we have achieved some notable successes.
The Department of Planning and Natural Resources, Division of Coastal Zone Management received national recognition for its outstanding work during 2001. The department was this year's recipient of the Walter B. Jones Memorial Award for Excellence in Local Government, which marks the first time the department has received such recognition for its implementation of the Coastal Zone Management Act.
The Coastal Zone Management Program was one of four programs that were honored by the United States Coral Reef Task Force for significant contributions towards coral reef conservation. The program was recognized for leadership and commitment in developing the Virgin Islands Marine Park and a local system of coral reef marine protected areas.
Notwithstanding our regulatory successes, it is plain that for many years we have underfunded our environmental infrastructure, resulting in overflowing landfills, deteriorating sewerage systems that are vulnerable to breakdowns, and costly federal penalties for non-compliance with federal environmental laws. In the la
st year we have refined draft legislation to remedy this unacceptable situation by creating an independent waste management authority with assured revenue sources and enforcement powers. The draft legislation is now ready and will be submitted to the Legislature within the next few weeks. I urge this body to give this important legislation its immediate attention.
In the meantime, the Department of Public Works has continued to work hard to bring the Territory's waste disposal and treatment systems into environmental compliance. In addition to the modern wastewater treatment facility that was completed on St. John, the department has made significant progress in constructing the $40 million Mangrove Lagoon wastewater treatment facility, which was first proposed more than a decade and a half ago and which will replace the antiquated wastewater plants on the east end of St. Thomas. Plans are also being developed to invest some $60 to $80 million over the next several years to upgrade the wastewater facilities on the west end of St. Thomas and all of the island of St. Croix.
The administration's proposal to develop an integrated solid waste management facility on St. Croix suffered a setback when the WAPA board suspended discussions with Caribe Waste Technologies, Inc. (CWT) last month for the purchase of alternative power and water which would be produced by the proposed project. I was disappointed by the board's action, and I still believe that the CWT proposal is the best solution to this crucial and vexing problem. Nevertheless, since the Federal Aviation Administration has required that the Anguilla landfill be closed by the end of 2002, I am committed to working with all parties to resolve our solid waste problems in a cost effective way which will allow us to meet federal regulatory requirements, keep the St. Croix airport open, and boost the economy in St. Croix in particular and in the Virgin Islands in general.
