May 11, 2009 — Outstanding financial issues with the V.I. Lottery overshadowed the Senate's discussion Monday on a bill that would give close to 6,000 government retirees an annual 3.5 percent pension bonus.
About $2.27 million would be transferred each year from Lottery's net collections to fund the bonus, which would be disbursed by the Government Employees' Retirement System. But Lottery currently can't "fund the effort" until its financial picture improves, said Lenyse Shomo, the agency's acting director. At this point the agency isn't making enough to break even, but should at least be out of the red by June, she said.
"Right now, we're introducing new revenue streams into the lottery system," Shomo explained to members of the Senate's Appropriations and Budget Committee. "We support this bill, but we presently cannot sustain it. However, we will make all effort to meet any appropriations set by this body."
To make things a little easier, senators passed an amendment stating that the bonus payments would be "subject to the availability of funds" — meaning that if Lottery doesn't have the money, GERS doesn't have to cut the checks.
Once amended, the bill passed unanimously, with senators saying that it was "the right thing to do" for the thousands of government workers trying to pay for medicine, food and other bills while the cost of living in the territory continues to increase.
"This measure seeks to do one thing, and that is to try and make sure that we take care of the hard-working people we have led the charge in government for many, many years," said Sen. Carlton "Ital" Dowe, the bill's primary sponsor. "We realize that medication is now going up, food prices continue to escalate, and many other things continue to increase as well while the retirees basically remain stagnant."
The money will then circulate back through the local economy, making the bill sort of like a mini-stimulus package, Sen. Louis P. Hill said.
But passing the bill also forces senators to get to the bottom of some unresolved issues between Lottery and Southland Gaming, said Sen. Craig W. Barshinger. During another committee meeting early last month, Lottery officials discussed the particulars of an ongoing dispute over approximately $20 million that Southland could owe the government. At the April meeting, Lottery attorney Paul Paquin said the Attorney General's Office had planned to meet with Southland representatives to resolve the money issue and attempt to flesh out some holes in its contract with the government. (See "Senators: Lottery Issues Remain Unresolved.")
During Monday's committee hearing, Paquin said the meeting with Southland Gaming should happen within the next month.
"I'm absolutely disappointed with that statement," Hill responded. "The attorney general should have met with Southland Gaming four weeks ago. This is taking too long."
Meanwhile, the Inspector General's Office has been called upon to investigate the matter, Hill said.
"The inspector general has made a request for a CD and video of the last meeting," he explained. "He wanted to examine some of the statements that were put on the record, and I have already sent it to him."
During Monday's meeting senators also unanimously approved:
— a lease agreement between the government and Arthur Hercules — doing business as Hercules Pate Delight — for a fast-food restaurant in Cruz Bay, St. John. The lease is for 10 years, with two five-year options to renew, at $446 per month or $5,355 a year; and
— a lease agreement between the government and Cool Breeze Sightseeing Tours for a car/jeep rental in Cruz Bay, St. John. The lease is for 20 years at $692 a month, or $8,301 a year.
Present during Monday's meeting were Barshinger, Dowe and Hill, along with Sens. Wayne James, Terrence "Positive" Nelson, Nereida Rivera-O'Reilly, Sammuel Sanes and Patrick Simeon Sprauve.
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