A 2009 law mandating free rides to the elderly and those with disabilities is growing in popularity but hurting VITRAN’s finances, V.I. Public Works Commissioner Darryl Smalls said in Senate budget hearings Monday.
Since November 2009, when the law was passed, VITRAN has given more than 168,000 free on-demand rides, with 68,868 so far this year, Smalls testified. VITRAN’s on-call transit service for the elderly and those with disabilities provides an average of 3,231 trips per month and 38,773 trips annually, he said.
The free trips are eating into VITRAN’s already tenuous finances, he said. VITRAN ridership has dropped significantly due to aging busses, free rides, competition from Safari taxi operators and greater reliance on private vehicles, Smalls said. VITRAN has carried 312,487 passengers this year to date, he said.
Torrential rains last fall seriously damaged roads, and a fire destroyed V.I. Public Works’ heavy equipment maintenance facility, making this "one of the most challenging years on record," Smalls said. Along with critical Public Works equipment and vehicles, several mechanics lost their entire personal tool collections that they used to maintain the government vehicle fleet, he said.
Despite challenges, Public Works is moving ahead with an array of road and building projects.
On St. Thomas, Public Works is working with the Department of Planning and Natural Resources to finish building a new library and archive for the territory’s historical and public records. The $14.6 million project is more than 95 percent complete, and should be finished by October, Smalls said.
Renovations to Addelita Cancryn Jr. High School began Aug. 23, and the exterior and major building components are contractually scheduled to be completed April 13, 2012, Smalls said.
Public Works has also selected an architect and begun the first phase of developing plans and assessing sites for a new school on St. John.
The demolition of the former Toro Building to make way for the Department of Justice’s St. Croix Headquarters is complete but awaits $16 million in funding for the new project in the final stages of design. Renovations to both St. Croix Central High School and St. Croix Educational Complex’s running tracks have been consolidated into one request for proposal, and Public Works expects to select the contractor within 60 days, he said. Expansions at Charlotte Amalie High School and several other projects are in the design phase.
Smalls came before the V.I. Senate with his top staff Monday to outline his department’s 2012 budget recommendation of $23.9 million from the General Fund. This is a 5.9-percent, or $1.5 million, decrease from last year’s appropriation of $25.4 million, and a 13.5-percent decline from the year before that.
The department anticipates another $20.3 million in local and federal funds, for a total of $44.2 million in 2012. The additional funds include $225,000 from the St. John Capital Improvement Fund for St. John public projects; $300,000 from the Tourism Revolving Fund to help with Carnival throughout the territory, and $1 million from the Anti-Litter and Beautification Fund for roadside maintenance.
Public Works also expects $18.8 million in federal funds, of which $18.6 million is slated for various capital projects.
The General Fund appropriation covers all internal operating expenses as well as capital projects that are paid for locally. Wages and salaries consume $7.3 million or 30 percent for 2012, while benefits and employer contributions to Social Security and Medicare will eat up another $3.1 million. Utilities are expected to consume $650,000 in 2012.
The catch-all "other services and charges" category comprises $12.2 million of the budget, with $5.6 million to subsidize VITRAN, $5.8 million for roadside maintenance, $401,000 for professional services, and several smaller expenditures.
Public Works has 290 employees, with 196 paid by the General Fund, 91 VITRAN employees out of subsidies to VITRAN and three funded with federal money.
