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OMB Aims Lower for 2009 Budget Request

July 18, 2008 — The Office of Management and Budget defended Gov. John deJongh Jr.'s recommended 2009 budget of $5.8 million for the OMB at Senate Finance Committee budget hearings Thursday.
The figure represents a $580,538 or 9 percent decrease compared to the 2008 budget. OMB's most visible function may be to actually prepare the annual Executive Budget with specific recommendations for every department, division and office in the territory's executive branch. It also approves budget allotments, based upon its assessment of the available revenues.
OMB's Federal Grant Management Unit is responsible for managing federal funds coming to the territory. It expects to manage $166.5 million in federal funds in 2009, OMB Director Debra Gottlieb said.
Its Public Assistance Unit distributes federal public assistance and its Policy Management Unit assists with developing fiscal policy. It makes the spending decisions, while the Department of Finance actually manages the government's accounts, issues checks to departments, payroll checks and so on. Because it already has large financial management and federal grant management responsibilities, OMB is also designated to handle federal emergency relief funds in the event of a hurricane or other disaster.
OMB's proposed budget calls for $3 million in local money and $2.8 million in "indirect cost recovery" funds. The indirect cost funds come from the federal government, which reimburses OMB for services rendered on behalf of the federal government. For example, OMB cuts all the checks for federal programs in the territory, including public assistance, and the federal government pays the cost.
While going over OMB's budget figures, Sen. James Weber III noted OMB's line item for electric bills was $60,000 less for 2009 than in 2008, flying in the face of the general trend in the territory. Gottlieb said the reduction was due to conservation measures recommended by Verona Dore, OMB's manager of administrative services. Dore said installing energy-saving compact fluorescent lights and putting lights and especially air conditioners on timers were responsible for the large savings.
"So you cut your bill by a third by doing what WAPA (V.I. Water and Power Authority) has been telling everyone to do," Sen. Terrence "Positive" Nelson said, congratulating OMB for being a "role model" for government energy conservation.
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