After Gov. Charles W. Turnbull sent the Legislature proposed amendments to existing law to allow the V.I. Telephone Corporation to deduct administrative costs for an emergency phone service surcharge, Vitelco's parent company, Innovative Communication Corporation, said Vitelco would absorb the costs instead.
Turnbull’s proposal would have allowed Vitelco to deduct $10,500 in start-up costs to begin 911 operating services. Once the service was on line, Vitelco would have been able to deduct $1,000 a month to administer the collection and disbursement of the $1 surcharge on customers' bills.
After news of the governor's action on Wednesday, however, ICC announced that Vitelco would absorb all costs associated with the collection of the surcharge.
Samuel Ebbesen, Vitelco president and CEO, said he had "failed to consult with ICC" during his discussions with the administration regarding the proposed legislative changes. He added that Vitelco was not initially consulted during the drafting of the original bill establishing the surcharge, making it "difficult to execute the statute and meet the deadline originally mandated in the bill."
Turnbull had also proposed to change the effective date of the surcharge from Jan. 1 to March 1 of this year.
The law, which passed the Legislature last November, imposes a surcharge of $1 per customer per month to improve emergency medical services, fire services and 911 emergency equipment, according to a Government House release.
Ebbesen said Vitelco was "simply the collection agency for the government."
"Vitelco has always worked to assist the government to the best of our abilities, and we will continue to do so," he said.

Delegate Donna Christian-Christensen came out of an unprecedented meeting of top federal and insular territory officials Wednesday optimistic that the process that led to the meeting "will result in some meaningful economic development initiatives for the territories."
The meeting in Washington, D.C., of the Interagency Group on Insular Affairs was attended by Gov. Charles W. Turnbull, the delegate and their counterparts from the nation's other insular territories.
Aimed at giving the federal government guidance on policy concerning Guam, the Northern Marianas, American Samoa and the Virgin Islands, the meeting was an important step toward resolution of issues and increasing "the level of participation in federal programs by U.S. territories," Office of Insular Affairs director Danny Aranza said.
He said IGIA efforts have led to at least 15 "short-term wins" that he described as federal-island partnerships.
Christensen said progress toward resolution of critical issues could come by the end of March. She said that John Berry, IGIA co-chair and assistant secretary of the Interior, told the group that by then "an inventory of programs" will be brought to the table as the Clinton administration seeks ways to enhance the economies of the territories.
"I am optimistic that this process will result in some meaningful economic development initiatives for the territories," Christensen said.
She said Virgin Islands concerns raised at the meeting included bids for assistance with waste water and solid waste problems, inclusion in new market initiatives and empowerment zones, inclusion in trade missions, a focus on territories as tax treaties are negotiated, resolution of negotiations with the Federal Emergency Management Agency, and grants and technical assistance in various areas.
"If we can come to concrete resolution of any or all of these issues, it would be a boost for our economy," she said.
She suggested that because less than 10 months remains in the current administration, the IGIA focus on regulatory or administrative issues that may not require funding.
As examples of developments that could enhance the territory's economy, she cited the creation of an infrastructure bank under the Transportation Department; state office designation for agencies such as the Department of Agriculture, Small Business Administration and Social Security Administration; and the hiring of more local personnel for federal positions.
Christensen said the reported confiscation by U.S. Customs personnel of cigarettes purchased in the territory which bear the mark "for export only" was discussed at the meeting. She said she told the group that this interpretation of a 1997 federal law is contrary to the duty-free status enjoyed by the territory for many years.

The first-ever meeting of top federal officials, Congressional delegates and territorial governors was held Wednesday in Washington, D.C.
The meeting ofthe Interagency Group on Insular Areas included Gov. Charles Turnbull, Delegate Donna Christen Christensen and other territorial representatives was aimed at giving the federal government guidance on policy concerning Guam, the Commonwealth of the Northern Mariana Islands, American Samoa and the U.S. Virgin Islands.
"Today's meeting . . . with members of the Interagency Group On Insular Affairs was a important step which will result in issue resolution and will dramatically increased the level of participation in federal programs by U.S. territories," Office of Insular Affairs Director Danny Aranza said.
V.I. Delegate Donna Christian-Christensen said that several issues of importance to the Virgin Islands and the other insular areas may have a resolution in progress as soon as the end of the month. Aranza said the IGIA process culminated in at least 15 "short-term wins" that he described as federal-island partnerships.
Christensen said that John Berry, co-chair of the IGIA and assistant secretary of the Interior, told the group that by the end of March "an inventory of programs" in a detailed response will be brought to the table as the Clinton administration seeks ways to enhance the economies of the four small U.S. territories.
"I am optimistic that this process will result in some meaningful economic development initiatives for the territories," said Christensen.
Among the V.I. issues brought up at the meeting were assistance with the Virgin Islands' wastewater and solid waste problems, inclusion in New Market Initiatives and empowerment zones, inclusion in trade missions, focus on territories as tax treaties are negotiated, FEMA negotiations and grant and technical assistance in various areas, Christensen said.
"If we can come to concrete resolutions of any or all of these issues, it would be a boost for our economy," she said.
The delegate, like other territorial representatives at the meeting, said she was mindful of the 10-month window of opportunity that the Clinton administration has to bring progress to these issues. For that reason, she suggested in her remarks to the group that attention be paid to issues that are regulatory or administrative in nature and may not require funding.
The territory's issues include:
A waiver of the Coast Guard's six-pack rule, which Christensen is also addressing through legislation, according to her legislative assistant Brian Modeste.
A waiver of Department of Agriculture's 10 producer rule, which requires large farms, the likes of which don't exist in the territory, to apply for disaster relief assistance.
The creation of an infrastructure bank under the aegis of the Department of Transportation, state office designation for agencies such as USDA, the Small Business Administration and the Social Security Administration and the hiring of more local personnel for federal positions, are areas that can enhance the territory's economy without funding, Christensen said.
Also discussed was the apparent confiscation by the U.S. Customs Services of cigarettes purchased in the territory which bear the mark "for export only." Christensen told the group that this interpretation of 1997 federal legislation poses a threat to the duty free status enjoyed by the territory for many years.

An unidentified Addelita Cancryn Junior High School student was struck as she attempted to cross Veteran's Drive Wednesday afternoon.
A one-paragraph release from Jose A. Garcia Sr., territorial chief of Police, said the student was passing in front of a taxi van that had stopped to let her cross when a vehicle traveling west in the northern lane struck her.
The student was treated at the Roy L. Schneider Hospital and released.

While major — perhaps fatal — problems with the Foreign Sales Corporation system may prove harmful to the Virgin Islands, there is a hidden silver lining in the situation which has not been discussed in public. (We assume that the governor and the delegate know about this, although they have not mentioned it openly.)
As background, the World Trade Organization in Geneva has decided that the FSC arrangement is contrary to international trading rules and must end by Oct. 1 of this year.
The FSC deal grants U.S. corporations major tax breaks — said to be worth $4 billion a year — if they handle some part, often a very nominal part, of their export transactions through an off-shore jurisdiction, such as the USVI, Guam or Barbados. The WTO regards this as an illicit U.S. government subsidy paid to the exporting corporation.
The last time the feds looked at the situation, they found that there were about 2,000 FSCs on the books in the USVI, but most of them had little more than a post office box and perhaps a minor relationship with a local attorney. The FSCs have not generated much employment in the territory, and certainly goods getting the FSC tax break are not shipped out of Virgin Islands ports.
A teeny fraction of the corporate tax breaks rubs off on the V.I. government, which estimates that it receives about $7 million in registration fees annually via a mild tax on the companies. (Why an estimate for funds received, by the way? Why not hard figures for each of the last several fiscal years? Surely they must be available!)
It is the government's prospective loss of this estimated $7 million that island leaders have been discussing. Two points should be made in this regard:
First is the fact that the FSC system, while wounded, is not dead. The nation has time to negotiate a compromise, essentially with its European trading partners. But while the compromise might salvage part of the system, the interests of the islands are going to count for little as other players — the U.S. cattle industry, the U.S. owners of Central American banana plantations, and major industrial exporters — all seek to get as much as they can out of what may be a complex, multifaceted trade deal which may well cover many issues in addition to the fate of the FSCs.
Second, and more encouraging, is the so-far unremarked potential impact of the loss of the FSC tax break on the federal government's budget process. The loss of a tax break means, among other things, that Washington is going to collect some additional U.S. taxes on exports.
For the sake of argument, let's say that the loss of the FSC-created tax break will mean a reduction in previously subsidized exports, so that instead of the $4 billion that the Treasury calculates it has been losing annually with the FSCs, it collects $1 billion in corporate income taxes as the result of the death of the FSC arrangement.
A billion dollars a year in new revenue, some of which can be linked to the Virgin Islands, would be a major stroke of good luck for the islands and could be used by the governor and the delegate as they seek federal aid to help the V.I. government out of its (partially self-imposed) financial mess.
Why is this helpful to the USVI? The current budget-writing rules in Washington demand that if a program is to be given additional funding, which is what the governor wants, the supporters of that additional funding have to identify either something else in the budget which will be reduced, or a source of additional revenue. That's called "scoring" in Washington parlance.
The loss of the FSC tax break can be interpreted as bringing more revenue to the U.S. Treasury, and the friends of the USVI can use that silver lining to support some financial relief for the islands. However, any such relief is unlikely to come until such time as the territorial government has met Washington's demands for fiscal discipline (e.g. more tax collections and/or a smaller payroll). The governor's office has not come up yet with an acceptable plan along these lines.
The brand-new source of federal funds for relief is there — but accessible only if the USVI can deliver its part of the bargain.
Editor's note: David North, a consultant, often writes about governmental finances.

While major — perhaps fatal — problems with the Foreign Sales Corporation system may prove harmful to the Virgin Islands, there is a hidden silver lining in the situation which has not been discussed in public. (We assume that the governor and the delegate know about this, although they have not mentioned it openly.)
As background, the World Trade Organization in Geneva has decided that the FSC arrangement is contrary to international trading rules and must end by Oct. 1 of this year.
The FSC deal grants U.S. corporations major tax breaks — said to be worth $4 billion a year — if they handle some part, often a very nominal part, of their export transactions through an off-shore jurisdiction, such as the USVI, Guam or Barbados. The WTO regards this as an illicit U.S. government subsidy paid to the exporting corporation.
The last time the feds looked at the situation, they found that there were about 2,000 FSCs on the books in the USVI, but most of them had little more than a post office box and perhaps a minor relationship with a local attorney. The FSCs have not generated much employment in the territory, and certainly goods getting the FSC tax break are not shipped out of Virgin Islands ports.
A teeny fraction of the corporate tax breaks rubs off on the V.I. government, which estimates that it receives about $7 million in registration fees annually via a mild tax on the companies. (Why an estimate for funds received, by the way? Why not hard figures for each of the last several fiscal years? Surely they must be available!)
It is the government's prospective loss of this estimated $7 million that island leaders have been discussing. Two points should be made in this regard:
First is the fact that the FSC system, while wounded, is not dead. The nation has time to negotiate a compromise, essentially with its European trading partners. But while the compromise might salvage part of the system, the interests of the islands are going to count for little as other players — the U.S. cattle industry, the U.S. owners of Central American banana plantations, and major industrial exporters — all seek to get as much as they can out of what may be a complex, multifaceted trade deal which may well cover many issues in addition to the fate of the FSCs.
Second, and more encouraging, is the so-far unremarked potential impact of the loss of the FSC tax break on the federal government's budget process. The loss of a tax break means, among other things, that Washington is going to collect some additional U.S. taxes on exports.
For the sake of argument, let's say that the loss of the FSC-created tax break will mean a reduction in previously subsidized exports, so that instead of the $4 billion that the Treasury calculates it has been losing annually with the FSCs, it collects $1 billion in corporate income taxes as the result of the death of the FSC arrangement.
A billion dollars a year in new revenue, some of which can be linked to the Virgin Islands, would be a major stroke of good luck for the islands and could be used by the governor and the delegate as they seek federal aid to help the V.I. government out of its (partially self-imposed) financial mess.
Why is this helpful to the USVI? The current budget-writing rules in Washington demand that if a program is to be given additional funding, which is what the governor wants, the supporters of that additional funding have to identify either something else in the budget which will be reduced, or a source of additional revenue. That's called "scoring" in Washington parlance.
The loss of the FSC tax break can be interpreted as bringing more revenue to the U.S. Treasury, and the friends of the USVI can use that silver lining to support some financial relief for the islands. However, any such relief is unlikely to come until such time as the territorial government has met Washington's demands for fiscal discipline (e.g. more tax collections and/or a smaller payroll). The governor's office has not come up yet with an acceptable plan along these lines.
The brand-new source of federal funds for relief is there — but accessible only if the USVI can deliver its part of the bargain.

Editor's note: David North, a consultant, often writes about governmental finances.

While major — perhaps fatal — problems with the Foreign Sales Corporation system may prove harmful to the Virgin Islands, there is a hidden silver lining in the situation which has not been discussed in public. (We assume that the governor and the delegate know about this, although they have not mentioned it openly.)
As background, the World Trade Organization in Geneva has decided that the FSC arrangement is contrary to international trading rules and must end by Oct. 1 of this year.
The FSC deal grants U.S. corporations major tax breaks — said to be worth $4 billion a year — if they handle some part, often a very nominal part, of their export transactions through an off-shore jurisdiction, such as the USVI, Guam or Barbados. The WTO regards this as an illicit U.S. government subsidy paid to the exporting corporation.
The last time the feds looked at the situation, they found that there were about 2,000 FSCs on the books in the USVI, but most of them had little more than a post office box and perhaps a minor relationship with a local attorney. The FSCs have not generated much employment in the territory, and certainly goods getting the FSC tax break are not shipped out of Virgin Islands ports.
A teeny fraction of the corporate tax breaks rubs off on the V.I. government, which estimates that it receives about $7 million in registration fees annually via a mild tax on the companies. (Why an estimate for funds received, by the way? Why not hard figures for each of the last several fiscal years? Surely they must be available!)
It is the government's prospective loss of this estimated $7 million that island leaders have been discussing. Two points should be made in this regard:
First is the fact that the FSC system, while wounded, is not dead. The nation has time to negotiate a compromise, essentially with its European trading partners. But while the compromise might salvage part of the system, the interests of the islands are going to count for little as other players — the U.S. cattle industry, the U.S. owners of Central American banana plantations, and major industrial exporters — all seek to get as much as they can out of what may be a complex, multifaceted trade deal which may well cover many issues in addition to the fate of the FSCs.
Second, and more encouraging, is the so-far unremarked potential impact of the loss of the FSC tax break on the federal government's budget process. The loss of a tax break means, among other things, that Washington is going to collect some additional U.S. taxes on exports.
For the sake of argument, let's say that the loss of the FSC-created tax break will mean a reduction in previously subsidized exports, so that instead of the $4 billion that the Treasury calculates it has been losing annually with the FSCs, it collects $1 billion in corporate income taxes as the result of the death of the FSC arrangement.
A billion dollars a year in new revenue, some of which can be linked to the Virgin Islands, would be a major stroke of good luck for the islands and could be used by the governor and the delegate as they seek federal aid to help the V.I. government out of its (partially self-imposed) financial mess.
Why is this helpful to the USVI? The current budget-writing rules in Washington demand that if a program is to be given additional funding, which is what the governor wants, the supporters of that additional funding have to identify either something else in the budget which will be reduced, or a source of additional revenue. That's called "scoring" in Washington parlance.
The loss of the FSC tax break can be interpreted as bringing more revenue to the U.S. Treasury, and the friends of the USVI can use that silver lining to support some financial relief for the islands. However, any such relief is unlikely to come until such time as the territorial government has met Washington's demands for fiscal discipline (e.g. more tax collections and/or a smaller payroll). The governor's office has not come up yet with an acceptable plan along these lines.
The brand-new source of federal funds for relief is there — but accessible only if the USVI can deliver its part of the bargain.

Editor's note: David North, a consultant, often writes about governmental finances.

IS REQUIRED SUMMER READING A GOOD IDEA?
by Chickenhawks Staff
All Charlotte Amalie High School students are required to read assigned books over the summer that are from recommended reading lists for all high school students.
For instance, one of the past assignments was to read Things Fall Apart by Nigerian author Chinua Achebe. The students read the book and then did research and wrote about Nigeria, the book’s setting and the theme of the book.
As it is time for the classes to order these books, the Hawks Squawks question is:
Do you think the summer reading assignment is beneficial to students?
12th graders
Te’Var Malone- Yes, because it helps students relate to novels to things in the past and to the present. It also helps students develop their literary skills.
Nicole Turnbull- Yes, because during the summer there are distractions. Summer assignments bring students back into the mind set of school.
Tiffany Braithwaite- Yes, because it helps build up your grades.
Hamilton George- Yes because once you do your summer assignment, you can’t fail.
11th graders
Kahalia Francis- Not really, it’s a waste of time.
Jahtara Francis-Yes, because it enhances learning. By doing the summer assignment one does not lose interest and knowledge taught during the previous year. It also encourages students to read more which I think is very
beneficial.
10th graders
Camisha St Luce- No because summer vacation is the time for us to relax and have fun.
Jerome Whyte- No because summer is for us to relax and have a break from school.
9th graders
Sean Kelly – No, because school is finished.
Andre Douglas – Yes, because the summer prepares you for what is going to happen throughout the semester.
SPOTLIGHT RADIO SHOW
The seniors Charlotte Amalie High School put on a radio show, Spotlight, on WSTA every Saturday at 8:30 a.m. The 15 minute show gives news about programs and activities that are going on at C.A.H.S. Ms. Carmen Howell, an assistant principal and the senior advisor, accompanies several students to the radio station each Saturday.
We invite everyone to listen in and keep up with the many special events happening at our school.
THE CAPTURE OF A THRONE
Stanley Perez
Using the motivation provided by a vibrant group of underclass women, the Charlotte Amalie’s High School Lady Chicken Hawks came out victorious when they met St. Croix’s Central High Caribs during the Invitational Basketball Tournament on Feb. 21, 2000.
The Caribs who reigned supreme for two-years over their kingdom lost their throne by a score of 66-65.
Though the mighty tribe put up quite a fight, their defense was not enough to stop Charlotte Amalie’s 6 foot tower, Tracy Browne. Browne who was devastating inside as well as out contributed 20 of the 66 points, having conquering all their adversaries as well as having a flaw less record, defeating the Chicken hawks will be a tremendous task for whoever is so unlucky as to face them in the upcoming Invitational Tournament which is to be held in early March.

The first-ever meeting of top federal officials, Congressional delegates and territorial governors was held Wednesday in Washington, D.C.
The meeting of the Interagency Group on Insular Areas, which included Gov. Charles Turnbull, Delegate Donna Christen Christensen and other territorial representatives, was aimed at giving the federal government guidance on policy concerning Guam, the Commonwealth of the Northern Mariana Islands, American Samoa and the U.S. Virgin Islands.
Danny Aranza, director of the Office of Insular Affairs, called the meeting "an important step which will result in issue resolution and will dramatically increase the level of participation in federal programs by U.S. territories."
Christian-Christensen said the resolution of several issues of importance to the Virgin Islands and the other insular areas may be in progress as soon as the end of the month. Aranza said the IGIA process culminated in at least 15 "short-term wins" that he described as federal-island partnerships.
Christensen said that John Berry, co-chair of the IGIA and assistant secretary of Interior, told the group that by the end of March "an inventory of programs" in a detailed response will be brought to the table as the Clinton administration seeks ways to enhance the economies of the four small U.S. territories.
"I am optimistic that this process will result in some meaningful economic development initiatives for the territories," said Christensen.
Among the V.I. issues brought up at the meeting were assistance with wastewater and solid waste problems, inclusion in New Market Initiatives and empowerment zones, inclusion in trade missions, focus on territories as tax treaties are negotiated, FEMA negotiations and grant and technical assistance in various areas, Christensen said.
"If we can come to concrete resolutions of any or all of these issues, it would be a boost for our economy," she said.
The delegate, like other territorial representatives at the meeting, said she was mindful that the Clinton administration will be in office only for another 10 months. For that reason, she suggested to the group that it pay attention to issues that are regulatory or administrative in nature and may not require funding.
The territory's issues include:
*A waiver of the Coast Guard's six-pack rule, which Christensen is also addressing through legislation, according to her legislative assistant Brian Modeste.
*A waiver of the Department of Agriculture's 10-producer rule, which requires large farms, the likes of which don't exist in the territory, to apply for disaster relief assistance.
*The creation of an infrastructure bank under the aegis of the Department of Transportation, state office designation for agencies such as USDA, the Small Business Administration and the Social Security Administration and the hiring of more local personnel for federal positions, are areas that can enhance the territory's economy without funding, Christensen said.
Also discussed was the apparent confiscation by the U.S. Customs Services of cigarettes purchased in the territory which bear the mark "for export only." Christensen told the group that this interpretation of 1997 federal legislation poses a threat to the duty-free status enjoyed by the territory for many years.

There are so many persons who work behind the scenes at the Reichhold Center for the Arts, taking care of props, lights, scenery, sound, maintenance, programming, management, funding, and marketing to make each performance a success. They all do an excellent job but for this column I had to choose just one, to spotlight as another positive contributor to the quality of life here on St. Thomas.
Pamela Toussaint is the bridge between each performance and the members of the audience. You won’t see her on stage but you may occasionally find her at the box office window and sometimes you’ll meet her tending the popcorn machine at the Sunday Night Cinema. It might be her voice on the phone when you call to order tickets. Now you’ll have a face to match with it
Toussaint is the manager of the box office and responsible for most of the marketing of events at Reichhold. She has worked in the box office since she started college at UVI. She became manager when she was a sophomore and slowly her duties were increased so that by the time she graduated in1998 she was managing the ticket sales and the marketing.
She takes initiative. It was she who made all the travel plans for the film producers at the Independent Film Festival. She goes out of her way to solve problems. When a friend wants to join me for a performance that was part of my season selection, Toussaint finds a way to get us good seats together. She is a real people person and loves her job. It is obvious from the way she treats Reichhold patrons and her fellow staff.
Like everyone else who considers the arts to be an integral part of existence, she agonizes about ways to encourage more people to benefit from the quality experiences being presented at the Reichhold Center for the Arts. She initiated taxi service from the St. John ferry, she’s planning mass mailings, and recommending some creative program ideas. She even went into the popcorn business, co-purchasing the popcorn machine with a friend, to add some ‘‘flavor’’ to the Sunday Night Cinema.
Toussaint understands the importance of developing the audience of the future. She wants more young people to have a chance to experience Reichhold other than at their graduation. For the Independent Film Festival, she approached several schools and offered free tickets to students to attend age appropriate films. They were the most enthusiastic audience of the week.
Her concerns lately are also about ways to appeal to a broader audience and provide different performances for the many layers of interests and cultural backgrounds on St. Thomas. She says, "Many people think Reichhold is only for the rich or is too high-brow." Although she knows that is not true she wants to find out what people would come out to see. She figures if she can just hook them once, they’ll get over their apprehension.
She’s planning a survey to get the general public more involved in the selection of the presentations at Reichhold. If you have ideas for specific presentations or just general "I’’d like to see" feelings, call Pamela Toussaint at the Reichhold Box Office 693-1559.