Taking Gov. John deJongh Jr.’s plea for cost-saving measures to heart, the Lieutenant Governor’s Office on Thursday presented a budget appropriation request of $8,493,811 to the Senate Committee on Appropriations and Budget, $60,733 less than last year’s appropriation.
Senators demanded that they do better, taking issue with the fact that the Lieutenant Governor’s Office continues to pay rent in excess of $800,000. Sen. Carlton “Ital” Dowe, chairman of the committee, stated that the high rent paid for office space was an issue last year and he expects the agency to “find a solution to this problem."
Dowe also questioned the agency’s high number of vacant positions, a total of 38. Approximately six of those positions have been vacant for over a year. Although a position is vacant, in some cases for years, government agencies still include those salary amounts in their personnel budget. The salaries of the Lieutenant Governor’s Office’s vacant positions total close to $1.5 million.
Raymond J. Williams, chief of staff for the office, explained in an interview Thursday that senators will probably cut funding for those positions that have been vacant for long periods of time. During the hearing, Dowe suggested that those positions that have been vacant for years “maybe should just be eliminated as the agency seems to be functioning without them.”
The Office of the Lieutenant Governor is responsible for monitoring the activities of banks, insurance companies and other financial institutions operating in the territory. They also handle the recording of deeds, insurance licenses, requests for articles of incorporation, and assessing and collecting all real property taxes and public sewer fees. The V.I. passport acceptance facility, the notary office and the V.I. state health insurance program (SHIP)/Medicare.
The office operates under five divisions: administration, real property tax division, recorder of deeds, banking and insurance, and corporations and trademarks.
The majority of the $8,493,811 requested will be used to cover personnel, with $5,455,581 going toward personnel services, allowing the office to maintain a staff of 130 filled positions under the General Fund totaling $4,662,289 and 21 vacancies under the General Fund totaling $793,292.
An additional $2,103,589 will fund fringe benefits costs at a level to match the personnel as per the guidelines of the Office of Management and Budget.
The requested funding of $740,007 for other services and charges was broken down into categories. A funding recommendation of $10,000 will be used to assist with professional services and the cost of maintenance contracts, system upgrades, and training. Travel costs for the lieutenant governor and management staff to attend conferences and training seminars is estimated at $40,500. The recommended budget amount for rental of office space is $514,896, over $300,000 short of their actual rent.
The request also includes $66,434 for supplies and $128,200 for public utilities.
The total amount of $8,493,811 requested is the same amount recommended by the governor.
Present at the hearing were Sens. Craig W. Barshinger, Dowe, Wayne James, Terrance “Positive” Nelson, and Nereida “Nellie” Rivera-O’Reilley.
