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Charlotte Amalie
Thursday, March 28, 2024
HomeNewsArchivesBOND ISSUE GOES FORWARD

BOND ISSUE GOES FORWARD

Gov. Charles W. Turnbull has called a meeting of senators at Government House for Monday night to discuss the bond issue legislation he submitted to the Legislature last week.
The meeting, scheduled for 7 p.m., was called around the same time the legislation was presented, according to Sen. Lorraine Berry, chair of the Finance Committee.
Berry said the bill is "troubling" to her. She is awaiting an analysis from the post auditor before saying more, though.
"The whole process bothers me," she said. "Every three months we're borrowing money. I want the post auditor to see if this is in the best interest of the people."
Berry added that she doesn't see how the gross receipts taxes can be committed as the revenue to pay back the bonds when the gross receipts are already included in the budget revenues.
A legislative session has been scheduled for Friday to consider bill no. G-23-0013, which would authorize the issuance of bonds through the Public Finance Authority. The governor has asked for the authority to issue bonds in the amount of $130 million.
A second part of the legislation seeks authorization to issue an additional $180 million in bonds if legislation currently moving through Congress to amend the Organic Act is not passed. The additional $180 million would be used to pay off current bonds, thereby freeing up revenue streams to be used for working capital.
The governor's bill would also require all agencies in the future to issue bonds through the PFA.
The federal legislation got a step closer to passage Monday when it was approved by the House of Representatives.
The House bill, introduced by Delegate Donna Christian-Christiansen, would change the Organic Act to allow the Virgin Islands to borrow working capital by issuing bonds, which is in keeping with other jurisdictions.
It must next pass the U.S. Senate before going to the president for signature into law.

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