ST. THOMAS, VI - The Committee on Budget, Appropriations, and Finance, led by Senator Novelle E. Francis, Jr. met in the Earle B. Ottley Legislative Hall. Lawmakers received testimonies regarding the proposed FY 2027 budgets for the Office of the Adjutant General and the Office of Veterans Affairs. Additionally, lawmakers forwarded a measure that would require the Virgin Islands Housing Finance Authority to pay compensation to the homeowners within the LBJ Gardens community who have been required to vacate their homes as a result of the actions related to the demolition of properties owned by the Virgin Islands Housing Finance Authority and associated with the operations of the Virgin Islands Water and Power Authority and the Virgin Islands Waste Management Authority. The approved item will be forwarded to the Committee on Rules and Judiciary for further consideration and action.

Major General Kodjo S. Knox-Limbacker, Adjutant General of the Virgin Islands delivered a proposed general fund budget of $3,503,999. There are a total of 592 Army and 74 air national guard members. This includes an active guard and reserve force of 96 army and 18 air national full-time employees. There is also a 100% federally funded civilian technician workforce consisting of 116 fulltime employees. Six civilian employees were lost due to a nationwide reduction in Department of Defense Civil workforce.

Nikita Ward, Executive Director for the Office of the Adjutant General detailed the budget request. This includes personnel services at $1,338,855, Fringe benefits at $674,505, supplies at $187,197, capital projects at $111,104, and other services, (inclusive of utilities and miscellaneous) at $1,192,338. This includes the miscellaneous budget appropriation of $150,000 for the Virgin Islands National Guard Pension Fund and $168,188 for the Youth About Face and Forward March Program, and $200,000 for the Territorial Active-Duty Fund.  The projected federal Master Cooperative Agreement budget allocation of $6,147,781.45 is proposed to support the Virgin Islands National Guard. These include $1,513,200 for the Army National Guard Security Program (Federally reimbursed at 100%), $3,922,509 supporting the facilities and maintenance program (Federally  reimbursed at 75% with a general fund local match of 25%), $147,118.35 to cover the telecommunications program (federally reimbursed at 100%), $239,820 representing the projected cost to support the environmental resource program (federally reimbursed at 100%), $37,834 for Air National Guard Operating Maintenance Program, (requires a 25 General fund local match and a 75% federal contribution), $73,000 for the support of the distance learning program (federally reimbursed at 100%), and $214,300 to support the Electronic Security System, (federally reimbursed at 100%).

Colonel Deborah Lobbenmeier, United States Property & Fiscal Officer for the Virgin Islands National Guard detailed the proposed FY 2027 Federal budget. The projected federal contribution to the Office of the Adjutant General is expected to be $56,377,323.92. Changes in the FY 2027 Budget are primarily due to increases in the rates for pay and allowances. Military pay and allowances raise effective January 1, 2027. These includes basic pay 7%, basic allowances for housing 3.9%, and basic allowances for subsistence 3.4%. The Virgin Islands National Guard anticipates an overall funding increase of 10% from Fiscal Year 2026 Actuals, increasing total funding of $47.8 Million in 2026 to $52.3 Million in FY 2027.  Various areas that are expected to see increase includes Active Guard Reserve Payroll from $14.3 Million to $16.4 Million, technician payroll from $12.4 Million to $12.5 Million, Part time (M-Day) payroll from $3.4 Million to $4.2 Million and operation and training from $4.5 Million to $5.7 million. Funding for installation support is at $8 Million and services and supplies totals $6 million. Full time and part time payroll totals $36.3 Million and operations and maintenance totals $20 Million.  Knox-Limbacker voiced major concern over vendor payments, stating that many vendors are small, local businesses that cannot afford delayed payments while maintaining a small workforce. Additionally, Limbacker stated that payment delays place federal matching dollars at risk.

Patrick Farrell, Director of the Office of Veterans Affairs delivered a proposed budget of $1,219,369, which is a slight reduction from FY 2026’s $1,319,369. Of this amount, $525,814 is designated for personnel salaries and fringe benefits. $243,552 is for operating expenses, and $450,000 is earmarked for non-service-connected VA medical travel both within and outside of the region, as well as burial benefits. Approximately $111,600 in non-appropriated funds is expected to be received from the Virgin Islands Lottery and the Virgin Islands Taxicab Commission.  There are six total positions. Two positions are currently vacant.

Farrell’s testimony detailed many initiatives that the Office has been undertaking, including the elimination of reimbursement backlogs, as only requests that have been submitted within the last thirty days remain in the normal processing cycle. $1.5 Million has been appropriated for the construction of the Clarence Beverhoudt, Sr. Veterans Complex. The Complex will house the St. Thomas Office of the Office of Veterans Affairs and will also provide dedicated meeting and event space for the Patrick U. George American Legion Post 90.  $350,000 was previously appropriated by the 34^th Legislature of the Virgin Islands as a required ten percent match for participation in the United States Department of Veterans Affairs Cemetery Grants Project. The project continues to proceed. Final approval is expected by October 1, 2026.

The office has facilitated the expansion of Veteran Medical Travel Benefits. Through Act 8991, the Veteran Emergency and Mainland Transportation and Burial Expenses Account now authorizes the Office to reimburse veterans who travel to the mainland United States for VA medical treatment up to twice per year. During October 2025 to June 2026, twenty-five trips have been reimbursed at a total cost of $18,446.09. Additionally, the Office has established a partnership with Fly the Whale Airlines, benefitting veterans on St. Croix. Since October 1, 2025, 92 veterans have used this benefit at a total cost of $32,296.  A similar program for veterans in St. Thomas and St. John is under development.

Additionally, Lawmakers forwarded Bill No. 36-0274, An act requiring the Virgin Islands Housing Finance Authority to pay compensation to the homeowners within the LBJ Gardens community who have been required to vacate their homes as a result of the actions related to the demolition of properties owned by the Virgin Islands Housing Finance Authority and associated with the operations of the Virgin Islands Water and Power Authority and the Virgin Islands Waste Management Authority. The measure was sponsored by Senators Clifford A. Joseph, Sr, Marise C. James, Novelle E. Francis, Jr. and co-sponsored by Senators Angel L. Bolques, and Ray Fonseca. The measure was previously heard during the June 8, 2026 meeting of the Committee on Budget, Appropriations, and Finance, but was improperly moved due to a technical error.

Senators present at today’s committee hearing were Novelle E. Francis Jr., Marvin A. Blyden, Angel L. Bolques, Jr., Dwayne M. DeGraff, Ray Fonseca, Kenneth L. Gittens, Hubert L. Frederick, Marise C. James, and Kurt A. Vialet.

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