Not being consulted about the memorandum of understanding between the V.I. government and the Department of the Interior was the theme of the day Tuesday at the Legislature.
The revision of Act 4440 mandated by the agreement was a priority for discussion as the Finance Committee met to discuss the memorandum.
Neither Delegate to Congress Donna Christian-Christensen nor Interior Secretary Bruce Babbitt attended the meeting. Finance chair Lorraine Berry had asked them to attend to discuss the agreement recently signed by Babbitt and Gov. Charles W. Turnbull.
In a letter to Berry, Christian-Christiansen said that although she had been briefed on the agreement, she had no authority with respect to the drafting it and no part in the negotiations. On that basis, she declined the invitation to attend.
A letter from Danny Aranza, director of the Office of Insular Affairs, said that Babbitt thought it more appropriate that Turnbull address any questions the committee might have regarding the agreement, since the memorandum's provisions "have a direct correlation to the fiscal year budget submitted by Gov. Turnbull."
After Berry read those letters into the record, discussion of the memorandum itself was deferred by harsh criticisms of Christian-Christensen by Sens. Adelbert "Bert" Bryan and Alicia "Chucky" Hansen.
Both accused the delegate of evading her duties and of not being honest about her knowledge of the memorandum. Hansen at one point demanded an immediate response to Christian-Christensen's letter. Berry said she also disagreed with what the delegate said in the letter.
"All of this (meeting) could have been avoided if the Legislature had been advised of the role it would play in the memorandum," Berry said, echoing the sentiment expressed throughout the day by all thelegislators, some more vehemently than others.
Turnbull sent Rudolph Krigger Sr., his special assistant on financial matters, to the meeting. Krigger testified that the memorandum is an "executive branch agreement between the government of the Virgin Islands and the federal government which establishes certain standards of financial performance and accountability as a condition of receiving federal financial and technical assistance."
He said the agreement "does not establish a 'federal control board' or contravene the constituent powers of the V.I. government, including those of the Legislature."
Bryan then brought the proceedings to a halt, demanding from Krigger a list of all the government employees "as of today" being laid off. Krigger said he would have to get that from Government House.
He was given until 3:30 p.m. to produce the list. Bryan then demanded the presence of Finance Commissioner Bernice Turnbull and Management and Budget Director Ira Mills, who appeared after a recess was called.
Along with revisions to Act 4440 to bring it into accordance with federal labor relations laws, the memorandum also mandates:
– Receipt of a copy of the governor's five-year financial recovery plan within 90 days of signature of the agreement. (The governor signed the agreement Oct. 5 and Babbitt on Oct. 7.)
– A 50 percent cut in overtime expenditures from fiscal year 1999.
– A hiring freeze with limited and "highly scrutinized" exceptions.
– A 5 percent reduction in payroll costs from fiscal year 1999 baseline costs.
– An additional 20 percent cut of overall expenditures.
– A 50-50 cost-sharing of retirement and health-insurance premiums.
– Elimination of five holidays.
The memorandum also has a provision for training all "key managers" in the administration of federal grants.
Another area, addressed by Sen. V. Anne Golden, is the "Enhancement of Natural Resources" provision. Golden noted that "Babbitt is a staunch conservationist. He envisions federal protection of coral reefs, but not one thing to protect our people."
Krigger was not clear on how the natural resources provision was to be handled. He quoted from the agreement that "Babbitt and Gov. Turnbull are committed to a program of preservation and enhancement of V.I. resources to help simulate economic growth through sustainable tourism. The agreement will establish a conservation trust similar to one existing in Puerto Rico."
Sen. Donald "Ducks" Cole called the agreement "going back to slavery," saying it had no respect for Virgin Islands history. "It's an attempt to subvert the power of this Legislature," he said.
Sen. Roosevelt David said he didn't see the agreement as "adversarial." Rather, he said, "It's the federal government trying to assist. We should get on board and help." He then asked Krigger, "Did it occur to you that, if the Legislature had been consulted, we could have had a better document?"
Krigger replied that "hindsight is always 20/20."
Sen. Adlah "Fonsie" Donastorg said the government "doesn't need new loans to pay tax refunds." He suggested that the money appropriated and not used for Y2K, which has now been supplemented by a $16 million grant from the federal government, be used to pay income tax refunds, which would "circulate millions of dollars into the economy." He has requested that the administration look into this possibility.
In a teleconference Tuesday afternoon, Aranza made it clear that federal officials expect compliance with the memorandum if local officials want financial assistance in the form of money for capital projects and other federal aid and concessions.
