Dear Source,
Senior citizens who depend on the Government Employees Retirement System for their support could find themselves in serious economic straits if the system is not rescued from years of mismanagement.
According to testimony at hearings before the Legislature’s finance committee, the current "inadequate" contribution rates of government employees continues despite an unfunded GERS liability of $500 million.
The shortfall — expressed in reference to a 1999 actuarial valuation — might be as much as $700 million if reckoned under current actuarial valuations.
It would seem natural for the trustees of GERS, who have cashed in $30 million in investments to meet payroll and retirement annuities — while taking in only $20 million — would be demanding that the government do something to stabilize the system. Senior citizens may be sacrificed as the system moves closer and closer to bankruptcy.
Huge raises are being given to political pals of the governor, while the little people are nearing the edge of a financial abyss.
About 6,000 government retirees are threatened. And no one seems to give a damn.
The silence from the GERS board is deafening.
Where is the outcry, the plan of emergency action? The Trustees are under fiduciary obligation, and could be personally liable if their inaction or neglect of the crisis harms the retirees.
Selling into a declining stock market represents further massive losses to the system, and nobody’s raising these critical questions. It’s amazing.
We are talking about elderly folks who gave their working lives to the territory, and what they’re getting is a slap in the face from the GERS board.
Morty Golden
St. Croix
Candidate for Lieutenant Governor
We welcome and encourage readers to keep the dialogue going by responding to Source commentary. Letters should be e-mailed with name and place of residence to source@viaccess.net.
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Aug. 6, 2002 – The U.S. Virgin Islands –- which enacted six new uniform laws in the past year — was recognized as the No. 1 jurisdiction in the United States for enactment of uniform laws in 2002 at the 111th annual National Conference of Commissioners of Uniform State Laws last week in Tucson, Ariz.
Additionally, the territory was recognized as the only jurisdiction in the United States to have completely updated the Uniform Commercial Code.
"Earlier this year the territory had the most outdated commercial laws in the country. With the adoption of the latest UCC amendments, we have gone from 1962 to 2002 overnight," said St. Thomas attorney Tom Bolt, who is president of the V.I. Bar Association.
Bolt said that work on the Uniform Commercial Code began more than 10 years ago, and that updating it speaks well for commerce in the territory. "It controls every commercial transaction that a buyer and seller enters into," he said.
Attending the conference were Bolt; St. Thomas attorney Queen Terry, who is assistant counsel to Gov. Charles Turnbull; and acting chief legislative counsel Yvonne Tharpes. All are members of the V.I. Uniform Law Commission.
The national organization comprises more than 300 lawyers, judges, law professor, legislators, and other state officials from every state, Washington, D.C., Puerto Rico, and the Virgin Islands. Members are appointed locally to draft and promote enactment of uniform laws that are designed to solve problems common to all states and territories.
The territory has enacted 34 different uniform acts. In addition to the Uniform Commercial Code, they include the Uniform Anatomical Gift Act, the Uniform Athlete Agents Act, the Uniform Interstate Family Support Act, the Uniform Limited Partnership Act, and the Uniform Partnership Act, among others.
Bolt said that the Uniform Securities Act, which was hammered out at the conference but still must be passed by the Legislature, is particularly important in light of the recent Enron and WorldCom scandals. This act gives state and territorial securities regulators broad powers to investigate, prosecute and sanction people and firms that engage in securities transactions.
Currently, the territory has limited power to regulate securities.
He said members at the conference also passed a Uniform Interstate Enforcement of Domestic Violence Protection Orders Act. This means that a restraining order obtained in another jurisdiction is valid in the Virgin Islands, and vice versa.
The conference also saw the passage of the Uniform Child Witness Testimony by Alternative Methods Act, which allows children to testify in both criminal and non-criminal proceedings outside a courtroom and away from the immediate presence of a criminal defendant. This act will make it easier and more comfortable for children to give testimony.
These acts also need passage by the V.I. Legislature, but Bolt said there is usually no problem in getting them through. "Usually on uniform laws, the senators don't amend them," he said.
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Aug. 6, 2002 – The U.S. Virgin Islands –- which enacted six new uniform laws in the past year — was recognized as the No. 1 jurisdiction in the United States for enactment of uniform laws in 2002 at the 111th annual National Conference of Commissioners of Uniform State Laws last week in Tucson, Ariz.
Additionally, the territory was recognized as the only jurisdiction in the United States to have completely updated the Uniform Commercial Code.
"Earlier this year the territory had the most outdated commercial laws in the country. With the adoption of the latest UCC amendments, we have gone from 1962 to 2002 overnight," said St. Thomas attorney Tom Bolt, who is president of the V.I. Bar Association.
Bolt said that work on the Uniform Commercial Code began more than 10 years ago, and that updating it speaks well for commerce in the territory. "It controls every commercial transaction that a buyer and seller enters into," he said.
Attending the conference were Bolt; St. Thomas attorney Queen Terry, who is assistant counsel to Gov. Charles Turnbull; and acting chief legislative counsel Yvonne Tharpes. All are members of the V.I. Uniform Law Commission.
The national organization comprises more than 300 lawyers, judges, law professor, legislators, and other state officials from every state, Washington, D.C., Puerto Rico, and the Virgin Islands. Members are appointed locally to draft and promote enactment of uniform laws that are designed to solve problems common to all states and territories.
The territory has enacted 34 different uniform acts. In addition to the Uniform Commercial Code, they include the Uniform Anatomical Gift Act, the Uniform Athlete Agents Act, the Uniform Interstate Family Support Act, the Uniform Limited Partnership Act, and the Uniform Partnership Act, among others.
Bolt said that the Uniform Securities Act, which was hammered out at the conference but still must be passed by the Legislature, is particularly important in light of the recent Enron and WorldCom scandals. This act gives state and territorial securities regulators broad powers to investigate, prosecute and sanction people and firms that engage in securities transactions.
Currently, the territory has limited power to regulate securities.
He said members at the conference also passed a Uniform Interstate Enforcement of Domestic Violence Protection Orders Act. This means that a restraining order obtained in another jurisdiction is valid in the Virgin Islands, and vice versa.
The conference also saw the passage of the Uniform Child Witness Testimony by Alternative Methods Act, which allows children to testify in both criminal and non-criminal proceedings outside a courtroom and away from the immediate presence of a criminal defendant. This act will make it easier and more comfortable for children to give testimony.
These acts also need passage by the V.I. Legislature, but Bolt said there is usually no problem in getting them through. "Usually on uniform laws, the senators don't amend them," he said.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.

Aug. 6, 2002 – The U.S. Virgin Islands –- which enacted six new uniform laws in the past year — was recognized as the No. 1 jurisdiction in the United States for enactment of uniform laws in 2002 at the 111th annual National Conference of Commissioners of Uniform State Laws last week in Tucson, Ariz.
Additionally, the territory was recognized as the only jurisdiction in the United States to have completely updated the Uniform Commercial Code.
"Earlier this year the territory had the most outdated commercial laws in the country. With the adoption of the latest UCC amendments, we have gone from 1962 to 2002 overnight," said St. Thomas attorney Tom Bolt, who is president of the V.I. Bar Association.
Bolt said that work on the Uniform Commercial Code began more than 10 years ago, and that updating it speaks well for commerce in the territory. "It controls every commercial transaction that a buyer and seller enters into," he said.
Attending the conference were Bolt; St. Thomas attorney Queen Terry, who is assistant counsel to Gov. Charles Turnbull; and acting chief legislative counsel Yvonne Tharpes. All are members of the V.I. Uniform Law Commission.
The national organization comprises more than 300 lawyers, judges, law professor, legislators, and other state officials from every state, Washington, D.C., Puerto Rico, and the Virgin Islands. Members are appointed locally to draft and promote enactment of uniform laws that are designed to solve problems common to all states and territories.
The territory has enacted 34 different uniform acts. In addition to the Uniform Commercial Code, they include the Uniform Anatomical Gift Act, the Uniform Athlete Agents Act, the Uniform Interstate Family Support Act, the Uniform Limited Partnership Act, and the Uniform Partnership Act, among others.
Bolt said that the Uniform Securities Act, which was hammered out at the conference but still must be passed by the Legislature, is particularly important in light of the recent Enron and WorldCom scandals. This act gives state and territorial securities regulators broad powers to investigate, prosecute and sanction people and firms that engage in securities transactions.
Currently, the territory has limited power to regulate securities.
He said members at the conference also passed a Uniform Interstate Enforcement of Domestic Violence Protection Orders Act. This means that a restraining order obtained in another jurisdiction is valid in the Virgin Islands, and vice versa.
The conference also saw the passage of the Uniform Child Witness Testimony by Alternative Methods Act, which allows children to testify in both criminal and non-criminal proceedings outside a courtroom and away from the immediate presence of a criminal defendant. This act will make it easier and more comfortable for children to give testimony.
These acts also need passage by the V.I. Legislature, but Bolt said there is usually no problem in getting them through. "Usually on uniform laws, the senators don't amend them," he said.

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Aug. 6, 2002 – The deal to sell Sunterra Carambola Beach Resort to a group of investors is still in the works, Carambola general manager Ike Turner said Tuesday. While the sale was expected to close last week, he said, "It will happen when it happens."
He said the company will make an announcement when the sale is consummated.
Turner said the name of the investment group also is "Carambola," but provided no other details. He said the investors have hired the Portsmouth, New Hampshire-based Ocean Hospitalities to manage the property. The president of Ocean Hospitalities, Doug Greene, did not returned several telephone calls requesting comment.
The 150-room hotel, which was previously a Westin resort, became a Sunterra property in 1998. Sunterra went into Chapter 11 bankruptcy on May 31, 2000, but emerged on July 29 after a $300 million financing deal with Merrill Lynch Mortgage Capital Inc.
Turner said numerous companies looked into buying the property. "There was one every six months," he said.
Ocean Hospitalities owns or operates more than 88 hotels in the United States and Canada, as well as shopping centers, restaurants and other real estate. According to its Web site, it is one of the five largest management companies in the United States and operates hotels of such chains as Holiday Inn, Holiday Inn Express, Crowne Plaza, Marriott, Courtyard by Marriott, Fairfield Inn by Marriott, Residence Inn by Marriott, Four Points Sheraton, Hilton, Days Inn, Ramada Inn, Howard Johnson, Quality Inn, Quality Suites, Comfort Inn, Hawthorn Suites, Best Western and Radisson. It also manages numerous independent properties.
Its Web site does not show any other Caribbean properties.
Turner said news of the pending sale has sparked interest among St. Croix residents, who have flocked to the beach and the restaurant. However, they are not staying overnight. He said the hotel is in the midst of its usual slow season, but he expects business to pick up in August and September. "July is the slowest month," he said.
He said the investors have been on the property, which has slid downward since its days as a Westin, noting changes that need to be made. Maintenance projects were scheduled for the fall, he said, but with the pending sale, he's not sure what will happen to those plans. While Sunterra is a time-share company, Turner said no time shares have been sold at Carambola since June 2000.
The Carambola Golf Club has different owners and is not included in the sale.

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Aug. 6, 2002 – The owner of the trailer that was the focus of a fire involving hazardous materials at the Polyberg Texaco gas station on Saturday said on Monday the only thing inside was a 55-gallon drum of granular activated carbon.
Firefighters responding to a fire in the trailer at the gas station at the bottom of Polyberg Hill called in a hazardous materials team on Saturday when water poured onto the fire produced a chemical reaction that forced them to pull back their operations. Preliminary tests did not determine what caused the reaction. On Monday V.I. Fire Service investigators were on the scene, seeking to determine the cause of the fire.
The trailer is owned by TSG Technologies Inc., an environmental clean-up company which had set up operations at the gas station to test the underlying soil for possible chemical contamination and, if necessary, treat it. On Saturday, St. Thomas-St. John District Fire Chief Merwyn Potter said the trailer had been taken to the station several days before the fire.
The technician who had been working out of the trailer said the only thing inside was granual activated carbon. "It's used to clean air or water of any number of contaminants," TSG's Bob Peterson said.
Fire Service investigator Wayne Crooke identified the material in the drum as a carbon vapor absorbant. When the substance comes in contact with water, he said, it "removes the fresh air from the area, and you have difficulty breathing." Two firefighters sustained inhalation injuries while fighting the fire on Saturday and were taken to nearby Roy L. Schneider Hospital for treatment.
By late Monday, Crooke said, investigators were still trying to figure out what caused the fire. "My focus is to try and determine the origin," he said.

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Aug. 6, 2002 – Gov. Charles W. Turnbull removed six ornaments from the Legislature's latest amendment-laden "Christmas tree bill" but left intact the six parts of the original measure — making property tax assessments biennial instead of annual and making five appropriations totaling $7.5 million.
According to a release issued Monday afternoon from Government House, the governor acted on Friday.
The six vetoes were:
– A section mandating the local public television station, WTJX-TV, to air Senate committee meetings and legislative sessions. Turnbull said the station "would not be able to fulfill its mandated obligations in broadcasting public programs if it had to change its format to accommodate the change in the law," and this in turn would put its license and charter at risk.
– A proposal to use cable television's public access channel or its government channel to telecast legislative proceedings on St. Croix. The designated public access channel "must be available to the general public," Turnbull said, "and the government channel has been assigned to the Education Department for educational programming and community events."
Sen. Adelbert Bryan has waged a long-standing battle with the administration for control of public access or government channels for Senate use. There is now a petition before the Public Services Commission to require the channels for Legislature use. A PSC spokesperson said Tuesday that the petition may be heard at the commisison's September meeting; there is no PSC meeting scheduled for August.
– An amendment repealing earlier funding to repair Motor Vehicle Bureau facilities in both districts. Turnbull also said this section was in conflict with another section of the bill and its passage "was obviously a mistake."
– A provision pledging gross receipts tax revenues for repayment of borrowing. First, Turnbull said, the gross receipts taxes already are pledged to the government's $300 million bond issue; and second, passage would have given the governor and the Economic Development Authority "control over pledging of the same government funds."
– A $5 million appropriation to purchase of 12 acres of land on St. Croix utilizing funds in the Land Bank Fund. "The government should not appropriate funds until a final negotiated price has been determined," the governor said.
– Another unidentified appropriation, on the grounds that funding will not be available in the current fiscal year, which ends Sept. 30.
The governor approved the multi-sectioned bill to which the amendments were attached. It calls for:
– Making property assessment by the Tax Assessor's Office every other year instead of annual.
– Creating a special fund to repair the territory's wastewater system in compliance with a December 2001 District Court order.
– Depositing $4 million from the St. John Capital Improvement Fund into the Special Projects/Wastewater Systems Repairs Fund.
– Appropriating $2.7 million from the General Fund to the Police Department for hiring officers and a psychologist,and for purchasing and maintaining police vehicles.
– Appropriating $700,000 from the General Fund to the V.I. Housing Authority for police force expenses.
– Appropriating $100,000 to the Human Services Department — $50,000 for Bethlehem House on St. Thomas and St. Croix, and $50,000 for the Women's Coalition on St. Croix.
In his letter to Liburd, Turnbull warned the Legislature, as he has done for months, not to pass any more appropriations this fiscal year, "since many of the funding sources are currently extremely over-obligated." In its most recent full session, on July 18, the Legislature spent more than $6 million, much of it money that the administration says does not exist.
In other action, Turnbull signed a bill designating the first week of June as Virgin Islands Child's Week and another naming the pavilion at the Police Department's Patrick Sweeney Headquarters in Christiansted in honor of Officer Violet Damidaux.
He also acknowledged Senate resolutions to ask the Government Employees Retirement System to rename the building housing the Casino Control Commission for George A. Farrelly, and to ask the Water and Power Authority to rename its Krum Bay power plant in honor of Randolph Harley. The Legislature had voted to rename the two structures, but neither property is owned by the government, so it lacked the authority to name them.
Earlier this year, the Senate voted to name the police pavilion for Farrelly, a onetime Police commissioner, but the governor vetoed that measure in June, stating that police personnel had objected, saying the structure should be named for Damidaux.

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Aug. 6, 2002 – Gov. Charles W. Turnbull removed six ornaments from the Legislature's latest amendment-laden "Christmas tree bill" but left intact the six parts of the original measure — making property tax assessments biennial instead of annual and making five appropriations totaling $7.5 million.
According to a release issued Monday afternoon from Government House, the governor acted on Friday.
The six vetoes were:
– A section mandating the local public television station, WTJX-TV, to air Senate committee meetings and legislative sessions. Turnbull said the station "would not be able to fulfill its mandated obligations in broadcasting public programs if it had to change its format to accommodate the change in the law," and this in turn would put its license and charter at risk.
– A proposal to use cable television's public access channel or its government channel to telecast legislative proceedings on St. Croix. The designated public access channel "must be available to the general public," Turnbull said, "and the government channel has been assigned to the Education Department for educational programming and community events."
Sen. Adelbert Bryan has waged a long-standing battle with the administration for control of public access or government channels for Senate use. There is now a petition before the Public Services Commission to require the channels for Legislature use. A PSC spokesperson said Tuesday that the petition may be heard at the commisison's September meeting; there is no PSC meeting scheduled for August.
– An amendment repealing earlier funding to repair Motor Vehicle Bureau facilities in both districts. Turnbull also said this section was in conflict with another section of the bill and its passage "was obviously a mistake."
– A provision pledging gross receipts tax revenues for repayment of borrowing. First, Turnbull said, the gross receipts taxes already are pledged to the government's $300 million bond issue; and second, passage would have given the governor and the Economic Development Authority "control over pledging of the same government funds."
– A $5 million appropriation to purchase of 12 acres of land on St. Croix utilizing funds in the Land Bank Fund. "The government should not appropriate funds until a final negotiated price has been determined," the governor said.
– Another unidentified appropriation, on the grounds that funding will not be available in the current fiscal year, which ends Sept. 30.
The governor approved the multi-sectioned bill to which the amendments were attached. It calls for:
– Making property assessment by the Tax Assessor's Office every other year instead of annual.
– Creating a special fund to repair the territory's wastewater system in compliance with a December 2001 District Court order.
– Depositing $4 million from the St. John Capital Improvement Fund into the Special Projects/Wastewater Systems Repairs Fund.
– Appropriating $2.7 million from the General Fund to the Police Department for hiring officers and a psychologist,and for purchasing and maintaining police vehicles.
– Appropriating $700,000 from the General Fund to the V.I. Housing Authority for police force expenses.
– Appropriating $100,000 to the Human Services Department — $50,000 for Bethlehem House on St. Thomas and St. Croix, and $50,000 for the Women's Coalition on St. Croix.
In his letter to Liburd, Turnbull warned the Legislature, as he has done for months, not to pass any more appropriations this fiscal year, "since many of the funding sources are currently extremely over-obligated." In its most recent full session, on July 18, the Legislature spent more than $6 million, much of it money that the administration says does not exist.
In other action, Turnbull signed a bill designating the first week of June as Virgin Islands Child's Week and another naming the pavilion at the Police Department's Patrick Sweeney Headquarters in Christiansted in honor of Officer Violet Damidaux.
He also acknowledged Senate resolutions to ask the Government Employees Retirement System to rename the building housing the Casino Control Commission for George A. Farrelly, and to ask the Water and Power Authority to rename its Krum Bay power plant in honor of Randolph Harley. The Legislature had voted to rename the two structures, but neither property is owned by the government, so it lacked the authority to name them.
Earlier this year, the Senate voted to name the police pavilion for Farrelly, a onetime Police commissioner, but the governor vetoed that measure in June, stating that police personnel had objected, saying the structure should be named for Damidaux.

Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.

Aug. 6, 2002 – Gov. Charles W. Turnbull removed six ornaments from the Legislature's latest amendment-laden "Christmas tree bill" but left intact the six parts of the original measure — making property tax assessments biennial instead of annual and making five appropriations totaling $7.5 million.
According to a release issued Monday afternoon from Government House, the governor acted on Friday.
The six vetoes were:
– A section mandating the local public television station, WTJX-TV, to air Senate committee meetings and legislative sessions. Turnbull said the station "would not be able to fulfill its mandated obligations in broadcasting public programs if it had to change its format to accommodate the change in the law," and this in turn would put its license and charter at risk.
– A proposal to use cable television's public access channel or its government channel to telecast legislative proceedings on St. Croix. The designated public access channel "must be available to the general public," Turnbull said, "and the government channel has been assigned to the Education Department for educational programming and community events."
Sen. Adelbert Bryan has waged a long-standing battle with the administration for control of public access or government channels for Senate use. There is now a petition before the Public Services Commission to require the channels for Legislature use. A PSC spokesperson said Tuesday that the petition may be heard at the commisison's September meeting; there is no PSC meeting scheduled for August.
– An amendment repealing earlier funding to repair Motor Vehicle Bureau facilities in both districts. Turnbull also said this section was in conflict with another section of the bill and its passage "was obviously a mistake."
– A provision pledging gross receipts tax revenues for repayment of borrowing. First, Turnbull said, the gross receipts taxes already are pledged to the government's $300 million bond issue; and second, passage would have given the governor and the Economic Development Authority "control over pledging of the same government funds."
– A $5 million appropriation to purchase of 12 acres of land on St. Croix utilizing funds in the Land Bank Fund. "The government should not appropriate funds until a final negotiated price has been determined," the governor said.
– Another unidentified appropriation, on the grounds that funding will not be available in the current fiscal year, which ends Sept. 30.
The governor approved the multi-sectioned bill to which the amendments were attached. It calls for:
– Making property assessment by the Tax Assessor's Office every other year instead of annual.
– Creating a special fund to repair the territory's wastewater system in compliance with a December 2001 District Court order.
– Depositing $4 million from the St. John Capital Improvement Fund into the Special Projects/Wastewater Systems Repairs Fund.
– Appropriating $2.7 million from the General Fund to the Police Department for hiring officers and a psychologist,and for purchasing and maintaining police vehicles.
– Appropriating $700,000 from the General Fund to the V.I. Housing Authority for police force expenses.
– Appropriating $100,000 to the Human Services Department — $50,000 for Bethlehem House on St. Thomas and St. Croix, and $50,000 for the Women's Coalition on St. Croix.
In his letter to Liburd, Turnbull warned the Legislature, as he has done for months, not to pass any more appropriations this fiscal year, "since many of the funding sources are currently extremely over-obligated." In its most recent full session, on July 18, the Legislature spent more than $6 million, much of it money that the administration says does not exist.
In other action, Turnbull signed a bill designating the first week of June as Virgin Islands Child's Week and another naming the pavilion at the Police Department's Patrick Sweeney Headquarters in Christiansted in honor of Officer Violet Damidaux.
He also acknowledged Senate resolutions to ask the Government Employees Retirement System to rename the building housing the Casino Control Commission for George A. Farrelly, and to ask the Water and Power Authority to rename its Krum Bay power plant in honor of Randolph Harley. The Legislature had voted to rename the two structures, but neither property is owned by the government, so it lacked the authority to name them.
Earlier this year, the Senate voted to name the police pavilion for Farrelly, a onetime Police commissioner, but the governor vetoed that measure in June, stating that police personnel had objected, saying the structure should be named for Damidaux.

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Aug. 6, 2002 – In the first media-driven charge and countercharge of the 2002 gubernatorial campaign, incumbent Gov. Charles W. Turnbull has thrown down the gauntlet, and challenger John P. de Jongh Jr. has taken it up.
In a paid radio address on Friday, Turnbull devoted most of his commentary to criticizing "one of the opposing candidates," whom he identified only as having been "commissioner of Finance and executive assistant to the governor." De Jongh held those posts in the Farrelly administration.
Turnbull described the subject of his criticism as "the same gentleman who recommended that I send home 2,500 classified government employees as one of the solutions to our financial crisis."
In several on-air responses later Friday, de Jongh termed the governor's remarks "unsubstantiated allegations" and challenged Turnbull to provide proof for his claim.
Now, de Jongh has gone public with that same challenge in advertisements published Tuesday in both of the territory's print newspapers. In the ads, he offers to pay for the publication of the governor's response and evidence.
De Jongh also noted in a release that in addition to being aired on the paid radio spot, the governor's allegations were distributed to the media in an official Government House press release. The two-page release on Office of the Governor letterhead was faxed to the media Friday morning. Public employees by law are barred from campaigning for themselves or for another candidate during work hours or utilizing work facilities.
Prior to his first-term inauguration, Turnbull tapped de Jongh to head his Fiscal Recovery Task Force, and de Jongh was a principal architect of the Five-Year Operating and Strategic Financial Plan that the task force presented to the new governor.
The five-year plan, which for the most part has not been implemented, noted that at that time, more than 10,500 people — about a third of the V.I. work force — were local government employees. The payroll for 8,444 of them consumed 73 percent of General Fund revenues, and the others were paid from federally funded sources.
The task force recommended in the plan that there be quarterly monitoring of a 1998 memorandum of understanding between the V.I. and federal governments on progress by the local government in reducing overtime, imposing a hiring freeze and reducing payroll costs by 5 percent. It further called for cutting overtime in half, hiring one person for every two who left government service, and continuing a 5 percent annual reduction in payroll costs through Fiscal Year 2004
In March of 1999, at the annual meeting of the St. Thomas-St. John Chamber of Commerce, when de Jongh was installed as the organization's new president, the guest speaker was Turnbull. In his remarks, the governor said that as the financially stricken government embarked on the process of downsizing, it would look to the private sector to absorb workers then on the public payroll.
Turnbull in his Friday radio remarks said salary increases to unionized workers took effect on Sept. 23, 2001, "and resulted in the payment of retroactive funds implemented during calendar year 2002." He added, "When I granted salary increases for the first time in 10 years to many of the employees of the exempt service, these increases were also made retroactive to the Sept. 23, 2001, date as provided for by law."
The governor also charged that the target of his criticism "consistently advised against the payment of retroactive pay due to deserving employees for years."
The task force's five-year plan stated that retroactive wages owed public workers stood at $271.7 million at the start of 1999 and was increasing at the rate of $25 million a year. The task force recommended in the plan that the government negotiate with the unions to find a way to implement step increases and obtain a 100 percent forgiveness of the retroactive obligation.

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