The Virgin Islands Water and Power Authority released the following statement Tuesday night in response to the Public Services Commission’s vote to reduce the LEAC charge:

The Virgin Islands Water and Power Authority (“WAPA” or the “Authority”) is deeply discouraged and profoundly disappointed by the action taken today by the Public Services Commission (PSC). In what appears to be a deliberate, ill-considered decision – deliberately overlooking facts, the PSC has ordered WAPA to lower electric rates, reducing WAPA’s budget by $2.5 million per month in a move that is not only irresponsible, but harmful to the public interest.

“I fully understand the desire to provide rate relief to the customers of the Virgin Islands Water and Power Authority,” stated WAPA CEO and Executive Director Karl Knight.

“We all share that same desire, and WAPA has been working aggressively to get to that point, but we must do so in a responsible manner that does not immediately jeopardize our ability to provide electric and potable water services in the Virgin Islands.”

While the PSC may believe that they are advocating on behalf of ratepayers, the decision by the PSC, made without fully considering the operational and financial consequences, places the Authority at risk of defaulting on its obligations to vendors, contractors, and employees. As we approach hurricane season, already fiscally challenged, it is the people of this territory who will pay the price for the PSC’s unsound decision-making, placing the entire Virgin Islands at great risk.

WAPA has been fighting on every front to maintain stability amidst rising fuel costs, aging infrastructure, and legacy debt. WAPA is only now, after many years, beginning to realize the operational savings necessary to dig itself out of its deep financial hole. Within the last year, WAPA has significantly reduced its monthly deficit, allowing us to improve the timeliness of fuel payments and continue addressing outstanding balances with local vendors. Today’s action reverses the very real progress we are making and decreases our annual budget by $30 million.

Teaching WAPA a so-called “lesson” or placing a government instrumentality “in the penalty box for three months” through these tactics as was stated in today’s hearing is irresponsible governance. That mindset is unfit for a regulatory, quasi-judicial entity like the Public Services Commission who we depend on for sound and rational decision-making. Rate adjustments must be data-driven, deliberate, and made with full understanding of operational realities and facts. There is no room for political grandstanding in that environment.

There is a sustainable pathway to increase service reliability and cut rates, but this is not the way. This cripples the Authority and will hurt its customers.

We call on the Public Services Commission to immediately reconsider this decision before irreversible harm is done to the Virgin Islands community.

Lawmakers on Tuesday pressed top financial officials on the government of the Virgin Islands’ ability to meet basic obligations like paying vendors and reconciling accounts, as key agencies presented their fiscal year 2026 budget requests during a Senate Committee on Finance, Budget, and Appropriations hearing.

The Finance Department, Office of Disaster Recovery, and Virgin Islands Public Finance Authority laid out their spending priorities, touted modernization efforts, and defended operational needs. But senators remained focused on what they described as persistent gaps between systems and outcomes, particularly in areas like vendor payments, financial reporting, and oversight of special funds.

Finance Department: Modernizing, but Gaps Remain

The Finance Department is seeking $13.9 million for fiscal year 2026, with $13.8 million coming from the General Fund and $108,500 from the Indirect Cost Fund. Executive Assistant Commissioner Clarina Modeste-Elliott told senators the department is operating with just 50 staff across both districts — 38 on St. Thomas and 12 on St. Croix — including only three accounting analysts responsible for processing more than 50,000 transactions totaling roughly $900 million so far this fiscal year.

“We need that number doubled,” Modeste-Elliott said. “But at this point in time, we’re just trying to be fiscally responsible,” adding that the Office of Management and Budget had asked that the department hold its number of active vacancies to just four.

Finance officials pointed to improvements underway, including technology upgrades, a structured month-end closing schedule, and a forthcoming special fund revenue report. A more robust training program is also in development to improve internal capacity. But several senators said those changes hadn’t yet resolved widespread concerns about payment delays.

“We’re hearing that vendors are still waiting over 90 days to get paid,” said Committee Chair Sen. Novelle Francis Jr., who also noted reports of agencies being asked to curb spending without clear updates to their budget allotments.

In response, Modeste-Elliott explained that while Finance aims to pay vendors within 30 to 45 days based on available cash, delays often stem from agencies submitting invoices that are already overdue. “By the time invoices get to us, they’re already past due,” she said. Executive Assistant Commissioner Maurice Wells added that many agencies don’t even input their invoices into the system, making it difficult to track real-time obligations. “We’ve asked them to send us every single outstanding item, whether entered or not,” he said.

Finance officials pointed to the lack of standardized financial oversight across departments as a major hurdle — one they say a proposed “chief financial officer” legislation could help resolve. “The CFO bill would help establish the necessary checks and balances,” Modeste-Elliott said, explaining that the legislation would ensure that all agency CFOs report directly to the commissioner of Finance. The aim, she said, is to improve consistency in accounting practices, promote transparency, and strengthen internal controls across the government.

Meanwhile, she said the department “tries its best to reconcile monthly,” and that it is committed to managing public funds with “fairness, equity and transparency.”

Whether reconciliations are being completed timely or accurately came under renewed scrutiny after questions surfaced over the balance in the Tourism Revolving Fund, which Finance officials reported at $88 million, nearly double its typical annual intake. “That fund only generates about $44 million a year,” said Sen. Kurt Vialet, prompting further examination of the figures. Finance officials acknowledged that the fund is one of their top five priorities for reconciliation and financial cleanup.

In addition to reconciliation concerns, senators expressed frustration over ongoing audit delays. While the government is reportedly paying private auditors around $5 million annually, the fiscal year 2022 audit remains incomplete.

Office of Disaster Recovery: Billions Managed, but Draws Delayed

Office of Disaster Recovery Director Adrienne Williams-Octalien outlined a $12.2 million budget request for FY 2026 — a $3.3 million reduction from last year, driven largely by staffing vacancies budgeted at 50%. Of the total request, $4 million is expected from the General Fund, with the remainder reimbursed through federal disaster programs managed by the Federal Emergency Management Agency and the U.S. Department of Housing and Urban Development.

“We manage more than $23 billion in federal funds,” Williams-Octalien told senators. “That includes everything from project development and construction oversight to payment processing and closeout reporting.”

According to Williams-Octalien, ODR has completed more than 1,000 recovery projects and expects to expend $441 million in FY 2025 alone, generating an estimated $14.1 million in gross receipts taxes. Recovery spending is projected to increase to $643 million next fiscal year, with potential tax revenues of nearly $139 million.

Despite those figures, she said the office continues to face serious cash flow challenges due to delays in federal drawdowns. “We need seed and float funds to stabilize cash flow and ensure payroll continuity,” she said. “Without them, we risk disrupting operations at a critical moment.”

Senators responded by highlighting an amendment approved during last week’s full legislative session that increases the government’s existing line of credit from $150 million to $250 million, effectively boosting the amount available for advancing disaster recovery projects.

Of ODR’s 104 budgeted positions, 41 remain vacant, including key roles in engineering, finance, construction management, and project oversight. While much of the office is funded through federal administrative cost reimbursements, Williams-Octalien said the local match remains essential to keeping operations moving while waiting on those draws.

Lawmakers praised the office’s Super Project Management Office, or Super PMO, for keeping major recovery efforts on track. Recent contracts awarded include school projects across all three islands, as well as health care infrastructure like the Queen Louise Home for the Aged and the Knud Hansen Complex.

Still, Francis stressed the need for continued urgency. “We need to keep projects moving,” he said. “Every delay has a ripple effect – not just on services, but on the local economy.”

Public Finance Authority: Managing Debt, Seeking Support

Testifying on behalf of the Virgin Islands Public Finance Authority, Director of Finance and Administration Nathan Simmonds presented a $26.11 million budget request, down 21% from FY 2025, largely due to reduced consulting costs and budgeting salaries at half capacity. Of the request, $9 million would come from the General Fund, with $5 million allocated to the Authority’s operations and $4 million directed to ODR.

The authority is responsible for managing the government’s complex debt portfolio, including Matching Fund Securitization Bonds, Grant Anticipation Revenue Vehicle Bonds, and the $1.7 billion note issued to support the Government Employees’ Retirement System.

“We’ve made substantial progress reducing debt service costs and freeing up capital for critical needs,” Simmonds said.

However, revenue shortfalls — particularly from declining rum sales — have strained the funding stream that supports the Matching Fund structure. Simmonds noted a $22 million shortfall in collections, which was announced last year and attributed, in part, Tuesday to declining domestic demand for spirits. “We’re ramping up marketing, working on new product mixes, and engaging with Diageo and Cruzan Rum to increase sales,” he said.

The authority recently closed on a $150 million GARVEE Bond issuance to support key infrastructure projects, including $48 million for the Veterans Drive Highway, $20 million for the ferry system, and $28 million in road improvements on St. Croix.

In addition to bond management, the authority oversees semiautonomous agencies like the Virgin Islands Next Generation Network and the West Indian Company Ltd., and manages compliance agreements tied to Limetree Bay Terminals and Port Hamilton Refining. Simmonds said that while Port Hamilton continues its legal dispute with the Environmental Protection Agency, the territory remains engaged as discussions around a possible refinery restart evolve.

IRB and OMB Outline Reform Efforts

The committee also heard from the Virgin Islands Bureau of Internal Revenue and the Office of Management and Budget, both of which presented fiscal priorities aimed at improving efficiency and oversight.

IRB Director Joel Lee proposed a $14.06 million budget — up 6% from the current year — and emphasized the agency’s need to fill 21 vacant positions across its 133-person workforce. Lee also noted that the bureau spends close to $950,000 annually on rental spaces, including more than $730,000 for its main office in Red Hook, St. Thomas.

OMB Director Julio Rhymer presented a $46.5 million budget that includes funding for 13 new or vacant roles. He announced plans to terminate the government’s third-party fiduciary contract by the end of the current fiscal year and launch a new in-house Fiscal Responsibility Unit by Oct. 1. An additional $500,000 has been allocated to support the transition.

When asked about the biggest threats to fiscal performance, Rhymer pointed to the uncertainty around the flow of federal dollars. Lee, meanwhile, said the government must move toward a performance-based budgeting model to better align funding with measurable outcomes.

Despite modest progress in some sectors, the economic health of the U.S. Virgin Islands remains in flux, with real-time challenges demanding strategic intervention, officials told lawmakers during a pivotal Senate hearing Monday.

In testimonies before the 36th Legislature’s Committee on Economic Development and Agriculture—chaired by Sen. Hubert L. Frederick—leaders from the Virgin Islands Economic Development Authority (VIEDA) and the Bureau of Economic Research (BER) painted a nuanced picture of the territory’s economy: one of cautious optimism, underscored by structural gaps and the urgency to modernize systems, boost self-sufficiency, and increase transparency.

VIEDA CEO Wayne Biggs Jr. outlined ongoing efforts to support job creation, housing access, and investment attraction. He pointed to internal stability—backed by 13 consecutive clean audits and over $85 million in federal grants—as a sign of progress, and highlighted the $8.998 million in loan guarantees issued under the federal State Small Business Credit Initiative (SSBCI 2.0), which have helped generate 99 new jobs and retain 94 others across construction, tourism, and healthcare. Through its VI Slice gap financing program, the Authority has also helped 47 first-time homeowners close on properties, with $5.2 million approved as of March, he said.

Meanwhile, initiatives like the Enterprise Zone Commission’s neighborhood revitalization projects and agro-processing center development—funded with $2 million from the Legislature—are intended to uplift distressed areas on both St. Thomas and St. Croix. Two new industrial buildings are planned for St. Croix to meet demand, with both of the territory’s economic development parks currently at full occupancy.

But challenges remain. Several senators raised concerns about VIEDA’s continued reliance on government appropriations despite its semi-autonomous status. While Biggs explained that the Authority’s clients pay taxes to the government, not directly to the agency, lawmakers such as Sen. Marise James questioned why the EDA isn’t financially independent yet. Sen. Novelle Francis pressed further, asking for a clearer accounting of return on investment, including how much tax incentive recipients contribute to public education. Biggs estimated beneficiaries contribute up to $350 million annually to the government’s coffers but acknowledged the agency lacks mechanisms to track specific impacts, such as educational donations, which are reported—often belatedly—by the Department of Education.

Senators also raised alarm over staffing and capacity. With compliance officers handling double the ideal caseload and eight unfilled positions due to salary constraints, Biggs said the agency’s ability to keep up with demand is under strain. CFO Kelly Thompson-Webb added that while larger grants help cover operations, smaller awards offer little to no administrative support, forcing VIEDA to dip into its core budget. Lawmakers agreed the situation places an undue burden on the Authority, which charges sister agencies just 5% for indirect costs—far less than the government’s 15%.

In a broader warning about long-term viability, Biggs said marketing remains underfunded, noting the agency’s $500,000 budget pales in comparison to Puerto Rico’s $20 million spend. An additional $3.5 million, he argued, could significantly raise the territory’s visibility. Infrastructure delays—especially FEMA-related repairs and permitting slowdowns—continue to limit investor interest. Senators acknowledged these bottlenecks and voted to hold in committee Bill No. 36-0065, which would shift the V.I. Port Authority’s focus from constructing a new warehouse to assisting with the renovation of an existing facility on St. Thomas—a measure seen as a more viable solution amid resource constraints.

At the same time, BER Director Dr. Haldane Davies focused on the data needed to support policy decisions. While outlining projects like a Household Income and Expenditure Survey and a health insurance viability study, Davies flagged the lack of recent GDP data and broader gaps in federal reporting for U.S. territories. He stressed that the territory must build a more resilient, data-informed economy—and that doing so requires skilled personnel, modern technology, and sustained federal engagement.

Several senators expressed concern about how long the Vision 2040 plan has remained in the strategy stage. While Biggs said progress is being made in sectors such as the blue economy and clean energy, others argued that execution still lags. Sen. Frederick, in particular, underscored the importance of economic resilience and local empowerment through targeted legislation and inter-agency collaboration. “Our focus is on fostering sustainable growth and promoting a more diversified economy that benefits the entire territory,” he said.

Still, inflation remains a pressing concern—especially on St. John, where consumer prices have increased by 2.2%, with gas prices hovering near $4 per gallon. Lawmakers questioned what protections were in place to shield residents from the effects of rising costs. Additionally, the closure of large retailers like Kmart has prompted calls to attract major distributors. While Biggs said statutes currently exclude most retail from EDC benefits, discussions are underway with companies like Amazon about the possibility of a local distribution hub.

Both Biggs and Davies acknowledged the strength of long-term frameworks such as the Comprehensive Economic Development Strategy and Vision 2040, but said real impact depends on addressing outdated infrastructure, workforce limitations, and tighter coordination between government agencies.

It could have been any year of the 1990s in St. Thomas, or any week. But it was definitely a hot Saturday morning at Mahogany Run Golf Course, where dozens of young Virgin Islanders stood on the practice putting green in red polo shirts.

I know this because I was there. We surrounded a man in golf attire holding a golf club. And holding our close attention.

His energy was electric. Whenever he spoke, you could feel his passion for the game light up our entire group. His voice carried an excitement that drew us young junior golfers in. He smiled as he demonstrated the lesson, and our curiosity turned into joy and inspiration, each of us hanging on to every word he said.

Because this golf lesson was coming from Nevin Phillips, the longtime head golf professional at Mahogany Run Golf Course, and what Nevin shared about golf was “liquid gold.” Not only did you hang on to every word, but after a lesson with Nevin, you felt you could hop on the golf course, play 18 holes and shoot even par. Or, get there one day.

Those days, learning from Nevin and wearing those red junior golf polo shirts feel like yesterday. Nevin, my longtime coach, mentor, trusted friend and colleague with the Virgin Islands Golf Federation, passed away on June 3.

He was the man I called “Coach” for over 35 years. He taught me golf and life lessons. One lesson was when he gave me my first job, folding and steaming golf shirts in the pro shop. In return, I got free practice range balls and a hot dog.

As a kid in elementary school, I thought this was the perfect gig. But it wasn’t about free golf balls and lunch. By working in the pro shop, Nevin was really teaching me the importance of golf attire and “presentation,” as he said. Because back then, I was showing up to the golf course every day in wrinkled golf clothes. He would joke and call me “Rough dry.” The nickname stuck forever. Even off the golf course. Even when my clothes were properly pressed (with starch).

“Coach” had lessons for all of us junior golfers. He was dedicated to helping us succeed. With his guidance, we did. He helped numerous junior golfers and I soar in golf and become champions of the game. Even as an adult and far removed from competing in college golf and tournaments, he was still “Coach.”

He was “Coach” to many of us golfers over generations. Or he was often called “Zeus,” a nickname from his DJ days in St. Thomas.

But most of all, he was “everything.” He meant everything to his family, friends, colleagues, junior golfers, and numerous people all over the world. He was a devoted son, proud father, and an extraordinary person and friend.

The Virgin Islands Golf Federation shared a tribute to Nevin that shares the enormous impact he had on golf in the USVI and the United States. Here’s a portion of it below:

“(Nevin’s) golf journey began in 1980 at Mahogany Run Golf Course, where he started by washing golf carts. But from the start, Nevin was a student of the game. He absorbed everything he could about the golf industry, and through hard work and unwavering dedication, rose to become Head Golf Professional and a proud PGA member. His knowledge was vast, but more than that, he made golf fun and accessible to all.

“As Head Pro, Nevin elevated golf in the Virgin Islands. He organized tournaments that united the best players from the USVI and BVI, supported countless nonprofits with charity golf events, and created community through the game he loved. His annual “Nevin and Friends” tournament in the Dominican Republic became a cherished tradition for many, equal parts competition and celebration.

“But perhaps Nevin’s greatest passion was youth golf. He led over a thousand junior golf clinics over the years, helping many young Virgin Islanders earn college scholarships and chase their dreams. He believed every child deserves a chance to play, and always ensured clubs and balls were available for those who needed them.

Nevin’s impact reached far beyond our shores. He traveled the world, representing USVI golf with pride — from major tournaments to international Olympic committees and events, bringing visibility and respect to our territory. In 1998, he helped establish the Virgin Islands Golf Federation and secured its place within the Caribbean Golf Association. And in 2009, he made history as the first African-American to win the PGA’s National Merchandiser of the Year award — an honor featured on CBS News, the Golf Channel, and more.”

But Nevin was even more than the game he loved and cherished. Our “coach,” “Zeus,” was larger than life. A man who uplifted every room he walked into. A man who always had a conversation roaring with laughter, with friends or people he’d just met. Whether Nevin was “Roasting” you or himself, one thing was sure. You didn’t want the laughter to stop.

He was a man always active in the community, supporting local youth and attending sporting events. He was always on the go, promoting youth golf in the territory, hanging out with friends, playing dominoes, attending cycling classes with friends at Sweet Fit VI, and of course playing golf as much as he could.

“Coach,” “Zeus,” the lessons you shared from golf to everyday life, they will never be forgotten. Your passion for golf and zest for life will never be forgotten. More importantly, they’ll live on in the USVI and every life you touched. Thank you for making life better. With every swing and shot, thank you for making life better, one lesson at a time.