The creation of a Virgin Island cancer center took center stage Tuesday in a public hearing before the Senate Finance Committee on the re-allocation of the territory's tobacco-settlement funds.
Only four of 18 testifiers opposed allocating 100 percent of the money to establish health- and long-term care services, including a cancer center.
The opposing four were union leaders led by Tito Morales, Central Labor Council president, who was adamant about retaining the 50 percent of the money previously allocated to the Union Arbitration Fund.
The matter was hastily voted into law in March 1998 to get in under the deadline to sue the tobacco industry. At that time the equal distribution of funds was allocated to the Health Revolving Fund and the Union Arbitration Award and Government Employees Increment Fund by several of the senators at Tuesday's session.
The meeting focused on an amendment by Sen. Allie-Allison Petrus to repeal the previous bill. The amendment would redistribute the funds as follows:
– 37.5 percent the Health Revolving Fund.
– 21.25 percent to the Gov. Juan Luis Hospital on St. Croix.
– 21.25 percent to the Roy L. Schneider Hospital on St. Thomas.
– 20 percent to the Union Arbitration Award and Government Employees Increment Fund.
Petrus opened the meeting on a solemn note, showing a video picture of the Western Cemetery, pointing out the grave of a friend who had died of lung cancer.
"Almost all of us know somebody who has been affected by this disease," Petrus said, emphasizing his determination to use more of the funds for health.
The chamber gallery was visibly brightened by more than 80 members of the American Association of Retired persons in colorful AARP T-shirts who listened intently as AARP officials spoke. The association has waged an almost three-month campaign for a public hearing to repeal the 1998 law.
Speaking on the need for long-term health care, Ed Phillips, AARP state legislative chair, pointed out that, according to a 1995 V.I. Population and Housing survey, eventually 47 percent of today's population will need some type of long-term care. Samuel Morch of AARP said the tobacco funds represent "a rare occasion where the territory may have the resources to develop a comprehensive long-care system."
Hugo Dennis, an ex-senator, said AARP supports Petrus's bill in principle but it "doesn't go far enough." He said, "We believe all of the tobacco funds should go to health."
As for money for retroactive increases, Petrus pointed out that of approximately 9,000 unionized government employees, the law as it stands would boil down to about $1.65 per pay period for each employee, an amount he termed negligible.
Morales said Petrus had his figures wrong, and the unions had a five-year plan to raise more money than allocated by leveraging the funds. He gave no details.
Morales was joined by Amos Peters of Seafarers International, Glen Smith of the American Federation of Teachers and Elroy Raymo, president of the Police Benevolent Association, all of whom were determined to keep the monies as they were originally allocated.
The union leaders explained they, too, favor using the money for health – that improved health benefits for their members would provide a "trickle down" effect, bringing money back into the community.
Dr. Bert Peterson, a native Virgin Islander and oncologist at the Beth-Israel Hospital in New York, spoke of his "vision" to establish a cancer center in the Virgin Islands. He explained that it could be possible with these funds, noting this is a remarkable opportunity that shouldn't be overlooked.
Peterson said that almost all states have used the tobacco money for health-related matters. He drew laughter when he said that New York Gov. Pataki had suggested using the money to rebuild the Tapanzee Bridge.
Dr. Wilbur Callendar, commissioner of Health, reiterated that all the monies should be allocated to the Health Department and the two hospitals.
"It is clearly immoral that one would even intimate that these monies should be used for anything else," he said.
Attorney General Iver Stridiron gave an overview of the situation, saying that Amadeo Francis, executive director of the Public Finance Authority, was in New York meeting with the investment firm Solomon Smith Barney to discuss leveraging the funds. A meeting is set with the Office of Management and Budget upon his return. Stridiron said he had not "heard of any state using the funds for retroactive wages."
Eugene Woods, chief executive officer of the Schneider Hospital, said it is estimated that more than $8 million goes out of the territory annually for off-island care. By having a V.I. cancer center, that money would be kept in the territory, thus generating more funds and retaining the revenue.
However, he said that with the current distribution of monies, the annual amount would be insufficient to "achieve our vision." Therefore, he said, strategies must be explored to leverage the annual payment into a larger amount.
The amount of money spent on off-island care, and means of keeping that money in the community, were familiar themes in the meeting as, one after another, the health representatives pleaded their case.
Fern LaBorde, president of the St. Thomas-St. John American Cancer Society unit, said that "pain and suffering have raised this money; it must be used to prevent more suffering."
From a relatively orderly and quiet morning, things took a different turn when Morales claimed that he was responsible for bringing the tobacco matter to the attention of Virgin Islanders, and that therefore he was entitled to the money. Petrus suggested that Morales' union must be "bankrupt of ideas," at which the union leader took offense, though Petrus said none was intended. Berry interceded, suggesting some "water be mixed in the wine."
Backing up the health officials were Erva Denham, president of the League of Women Voters; Dale Garee, president of the American Lung Association; and Dr. Frank Odlum, president of the V.I. Medical Society.
Dr. Edward Trapido of the University of Miami's Cancer Center estimated that tobacco-related expenses in the U.S.V.I. would be $40 million to $50 million annually, based on a national average.
He explained programs aimed at eliminating tobacco use in teen-agers in the V.I. He said the tobacco industry spends $5.1 billion annually on marketing and the territory needs to counter that with community programs to reduce tobacco use.
The hearings will continue at 10 a.m. Wednesday in the Senate chambers in St. Croix, and will probably be concluded at a committee meeting Feb. 22.
Committee members attending the session were Sens. Berry, Petrus, Gregory A. Bennerson, Roosevelt St. C. David, Violet Anne Golden and George E. Goodwin. Also in attendance were Sen. Vargrave Richards, Almando "Rocky" Liburd, Judy Gomez and Donald "Ducks" Cole.
