The Senate Finance Committee learned Monday afternoon that two government agencies have pared down their Fiscal Year 2001 budgets, while the government's budget gap has expanded from $50 million to as much as $100 million.
In a preamble to his analysis of the Fiscal Year 2001 Division of Personnel Budget, Senate Post Auditor Campbell Malone said, "tax increases and other revenue enhancements notwithstanding … a substantial shortfall still exists … and looming labor unrest could easily add $40 million to $45 million to the above-mentioned shortfall."
Malone said he could not recommend the Personnel budget because the scope of his analysis had been "severely limited" by the enormous constraints and challenges in Gov. Charles W. Turnbull's FY 2001 budget proposal.
Presenting budgets in the afternoon hearing were Personnel Director Joanne Barry and members of her staff, and Karen Andrews, chief government negotiator, who presented the Office of Collective Bargaining's FY 2001 budget.
Andrews told Committee Chairwoman Lorraine Berry that among OCB's goals for 2001 is reducing the high backlog of cases by hiring an attorney for the St. Croix district, which generates two-thirds of the office's case load. Also, OCB wants to develop an overall plan for all unions for retroactive pay, step increases and future negotiations.
"As we speak, our teachers . . . are out on the picket lines," Andrews said. "To add to the precarious state of territorial labor relations, other unions have indicated their intent to literally wage holy war, depending on how the AFT saga is ultimately resolved."
Referring to recent legislative action, Sen. Roosevelt David said, "Unless a source of funding is identified, you will not enter into a contract?" Andrews said to enter into bargaining in "good faith," she had to be reasonably certain where the funding was coming from. "The philosophy of this administration is that we will not negotiate beyond our means," she said."That is our focus."
Asked whether she had any reason to be optimistic about tomorrow's meeting with the AFT, Andrews said, "I am always optimistic." Earlier in the day Vernelle de Lagarde, interim AFT president for St. Thomas-St. John, had said to the same question, "There is always hope."
Barry said the division's FY 2001 budget of $2.5 million represents a 6 percent reduction from their original submission, as mandated by the governor. That amount, she said, includes the OCB budget of $325,372. Barry draws a $78,000 yearly salary, and Andrews $65,000, among other personnel costs in Malone's analysis.
Andrews said her budget represents an almost 16 percent reduction from the initial FY 2001 budget appropriation. Combined with a cost reduction in FY 2000, OCB has reduced its budget by 38 percent by moving the St. Thomas office into the GERS building and thus saving $39,600 yearly rent, among other measures.
Barry noted computer training programs have saved more than $116,000 in training expenses. She said the division has also drafted a revision of personnel rules and regulations for the first time in nearly 20 years.
The division is also shopping for software to streamline the Notice of Personnel Action process and provide personnel officers with online information.
The budget hearings continue all week. Tuesday's 10 a.m. meeting will focus on the Department of Licensing and Consumer Affairs, Consumer Protection Fund, V.I. Taxicab Commission and the Public Services Commission.
