Calling the V.I. government technically bankrupt, Gov.-elect Charles W. Turnbull said the territory faces a deficit of at least $60 million for fiscal 1999, plus another $23 million in proposed appropriations without a source of funding.
Newspaper and radio reports Tuesday quoted Turnbull as saying the fiscal situation constitutes a crisis, and "we have to come up with contingency plans to meet crises that come up."
Juel Molloy, transition team co-chair, said that once the new administration takes office next week, it probably will find that the government is in even worse fiscal shape than has been uncovered to date.
One immediate concern is the Y2K issue. Funds must be found to upgrade the government's computer system before the year 2000. Turnbull said Banco Popular will be approached about extending its loan offer.
According to media reports, Turnbull identified various recommendations made by his transition team to cut spending and increase revenues:
— Eliminate unnecessary positions. For instance, he will name only one administrator for St. Croix; Gov. Roy L. Schneider had three.
— Consolidate some government agencies, including the Personnel Division and Office of Collective Bargaining and the V.I. Housing Authority, the Housing Finance Authority and the Housing, Parks and Recreation Department.
– Abolish some of the 100-plus boards and commissions.
— Stop the abuse of government vehicles, an area he said has long been a trouble spot.
— Reduce the number of offices the government rents from private parties, and develop plans for a government center. The V.I. government now pays about $13 million a year to rent offices.
— Renegotiate a sale of tax liens to collect more real property taxes.
— Lobby Congress to raise the rum-excise tax from $10.50 per barrel to at least $11.30 where it was and hopefully to the full $13.50. Turnbull said he'll also lobby for a partial return of gasoline-excise taxes.
— Use 100 percent of hotel-occupancy taxes to promote the territory as a tourist destination.
— Improve and standardize the government's hiring process.
— Develop a marketing unit in the Agriculture Department to help sell V.I. produce abroad.
Turnbull also named areas of government where more spending is needed: more lawyers in the Justice Department as well as personnel in health, education and public safety.
Molloy said reports from Schneider's top financial managers indicated there will be some difficulties meeting payroll. They recommended seeking a line of credit at the banks to make sure payroll is met.
