Sen. David Jones proposed Tuesday that the Government Employees Retirement System put $10 million in a "blocked" account that would generate interest and create a $10
million note available for trading.
Jones suggested GERS place $10 million in a trading bank and then use its existence to generate funds, according to the V.I. Independent.
Jones said those funds could be used to make retroactive payments to V.I. government employees, pay vendors and make income tax refunds.
GERS board members were noncommittal about the proposal, the paper said. Alphonso Nibbs, GERS legal counsel, said this was not the kind of investment the system usually gets into.
Board Chairwoman Corine King said members would discuss Jones' proposal further with staff and administration officials before proceeding.
Jones said he based his proposal on Gov. Charles W. Turnbull's bleak assessment Monday of the territory's fiscal condition.
In his State of the Territory address, Turnbull said the territory's long-term debt tops $1 billion, and the shortfall in the General Fund this fiscal year totals $246 million.
Turnbull did not give a total owed for retroactive salary increases but said his administration inherited debts of $66 million in vendor payments, $24 million in delayed tax refunds, $69 million owed to various funds "due to questionable and unauthorized borrowing practices," and $21 million in prior years' obligations.
