Apologizing repeatedly and citing the fiscal crisis, members of the Finance Committee on Friday cut Fiscal Year 2001 budget appropriations for the Territorial Court and the University of the Virgin Islands. In action not directly related to the budget, the committee also approved a massive overhaul of the territory's Uniform Commercial Code.
In amending the budget figures downward, Sen. Anne Golden predicted, "These cuts will continue until the economy improves."
UVI had requested $29.6 million; Gov. Charles W. Turnbull proposed $23 million for the institution. The Finance Committee reported out a bill to appropriate $22.1 million.
The story was similar for Territorial Court. It requested a budget of $23.9 million; the governor proposed $18.8 million and the committee approved $18.3 million.
In introducing the Revised Uniform Commercial Code—368 pages divided into three separate bills—Finance Chairman Lorraine Berry said work on the revision "has been in progress for more than a decade." It was handled by the V.I. Law Revision Commission and is designed, in part, to facilitate interstate commerce.
"It is time for the Virgin Islands to get on the same page" as other territories and states that enacted similar legislation as early as the 1950s, Berry said.
Sen. Gregory Bennerson suggested the legislation has not received much public attention because it does not give "immediate gratification," but that its effects are far-reaching.
"It says to the public that the Virgin Islands is open and ready to do business," Golden said.
In other budget action, the committee rejected an administration proposal to require motorists to pay an additional $10 annual fee for each registered vehicle to cover the cost of disposing of junked cars.
Berry said fees for vehicle disposal should be charged to their owners, not the public at large.
Golden said the $10 could simply end up in the big pot of the General Fund rather than being segregated for the stated purpose. She noted the bill did not include a plan for administrating the fund. "This is indicative of all the bills that have come before us," she said.
Senators also criticized the governor's proposal to allow the Department of Planning and Natural Resources to spend more than its appropriation in the event of an emergency. Post Auditor Campbell Malone told the committee that the executive branch already has that authority, if the governor declares a state of emergency.
The committee held the bill until Monday when it is expecting DPNR Commissioner Dean Plaskett to appear to discuss his department's appropriation.
The committee approved a bill that will allow the budget director to reduce the appropriations for any department based on personnel savings it realizes because of employees taking advantage of the Voluntary Separation Incentive Act.
Malone told the committee that the savings are already factored into the budget.
The administration is counting on up to $12 million in savings for the early retirements. However, that figure may be inflated. It is based on an estimated 607 employees who are eligible for retirement. Only 256 employees met the deadline to apply to retire under the Act.
According to information from the Government Employees Retirement System, that number includes employees whose eligibility is in question because they fall short of the 30 years of service and must "purchase" up to two years in order to be eligible. The purchase provision in the Act is the subject of a court case.
