HomeNewsArchivesFINANCE COMMITTEE BEGINS ACTION ON 2001 BUDGET

FINANCE COMMITTEE BEGINS ACTION ON 2001 BUDGET

Action began Thursday on the 2001 budget, starting with amending appropriations bills to reflect the fact that the fiscal year is already in progress. The Senate Finance Committee reported out 10 measures, first attaching an amendment to them that the appropriations they contain will be minus whatever was spent for the same purpose between Oct. 1 and the date of enactment.
The committee held until Friday what may be the most controversial bill of the day's agenda, one to amend the Industrial Development Commission fees and to allow IDC beneficiaries to get an automatic three-year extension of benefits in exchange for paying two years' worth of taxes and fees.
Senators also held a bill calling for appropriations from the Tourism Revolving Fund (hotel room tax revenues earmarked for advertising) to Housing, Parks and Recreation. Sen. Lorraine Berry objected to spending $500,000 from the fund for an item labeled "Youth World Basketball." Sen. David Jones moved to hold the bill to get more information.
Votes throughout the day reflected that much of the work on the bills had been done in caucus. Majority senators carried votes unanimously. Sen. Alicia "Chucky" Hansen, the only minority senator on the committee, voted no or abstained in almost all cases.
The committee sent the following appropriations bills to the Rules Committee:
— $2.7 million from the Health Revolving Fund for Health expenses.
— $4.8 million from the Anti-litter and Beautification Fund to Public Works for roadside cleanup and oil recycling.
— $344,678 to the Virgin Islands Taxicab Commission.
— $477,519 to the Public Services Commission.
The committee also approved bills that made contributions to the General Fund from special funds – $3.5 million from the Union Arbitration Award Fund and $3.5 million from the Land Bank Fund. The governor had asked for $1.5 million from the Land Bank Fund.
Hansen opposed both moves, saying the Land Bank Fund has been used not only to purchase land but to subsidize housing. Proponents argued the money is needed to keep the government afloat and meet payroll.
"I just want the record to be clear that we are raiding and raiding and raiding funds to pay payroll," Sen. Anne Golden said.
Senators approved two administration proposals that deferred implementation of past legislation creating two more funds because there is no money for them. A St. Croix Capital Improvement Fund and a Crisis Intervention Fund are both supposed to be funded through bond proceeds, but that money is not available.
In other action, the committee voted to amend existing law so that all, rather than half, of the collections Fire Services makes because of its new fees may be used for "mandatory operational expenditures."
It also voted to create a Solid Waste Revolving Fund although it tabled a bill that was to establish the tipping fees that would feed the fund. The bill was killed at the administration's request because the government is not ready to implement it. The committee also tabled indefinitely a proposal to appropriate money from the Sewage System Fund to Public Works because Post Auditor Campbell Malone told them there is no money in the fund.
Besides Berry, Hansen, Golden and Jones, Sens. Gregory Bennerson and Roosevelt David attended the meeting. Committee member Sen. George Goodwin was absent.

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