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 testimony regarding proposed Fiscal Year 2027 budgets from the VI Department of Labor, VI Division of Personnel, and Office of Collective Bargaining. 

VI Department of Labor Commissioner, Gary A. Molloy, presented the fiscal year 2027 budget request of a $12,823,544 General Fund appropriation. The funding request reflects a $161,154 decrease from the previous fiscal cycle due to a shift toward federal funding sources. VIDOL expects to receive $9,148,923 in federal grant funding for the upcoming fiscal year, which is a three-million-dollar increase in federal capital compared to the current period and brings the total proposed operational budget to $21,972,467.  

The department is projecting a total territorial workforce of 137 employees across both districts for the upcoming fiscal cycle. The baseline General Fund request allocates $6,868,279 for personnel services and $3,502,131 for fringe benefits, with the remaining balances covering supplies, utilities, and other services. Commissioner Molloy also detailed a separate $4,995,719 Miscellaneous General Fund allotment, which appoints $900,000 for government-wide unemployment contributions, $2,077,799 for workers' compensation and safety operations, and $2,017,920 for the Summer Youth Work Experience Program. 

The budget presentation brought attention to the closure of the territory's federal Title XII Unemployment Insurance debt, with their final payment of $11,888,166 on April 30, 2026. The transaction concluded the repayment of approximately $100 million in cumulative debt. The local Unemployment Trust Fund currently maintains a balance of approximately $14,726,456 for future benefit disbursements, and the division is transitioning to an electronic filing system with the launch of an online Employer Portal scheduled for August 3, 2026. The testimony also addressed regulatory updates regarding the Virgin Islands Division of Occupational Safety and Health, which was removed from federal high-risk grantee status effective September 30, 2025. In addition to compliance adjustments, the department has scanned and archived 3.1 million paper records as part of its ongoing data digitization project. 

Director of the Division of Personnel, Cindy L. Richardson, presented the agency's budget request for a total recommended allocation of $66,853,857. The funding combines $66,263,857 from the local General Fund and $590,000 from the Indirect Cost Fund, alongside an anticipated $45,000 in projected revenues for the Training Revolving Fund. The baseline operating budget allocates $3,635,884 for personnel services and $1,785,758 for fringe benefits to support a projected territorial staffing structure of 67 positions, which includes 57 currently filled roles and 10 active vacancies distributed across both island districts. A substantial part of the overall request resides within the miscellaneous budget category, which designates $38,210,672 for health insurance for retirees and $19,935,999 for the employer-employee active insurance share. As of May 2026, the government's health insurance program provides coverage to 19,370 total members, including dependents, with the Government of the Virgin Islands subsidizing 73 percent of the premium costs at $80,106,417. 

The division described several technological and structural updates, including the upcoming August launch of a new centralized Learning Management System. Funded through a $478,254 American Rescue Plan Act allocation, the platform will grant central government personnel access to a catalog of over 30,000 courses to standardize compliance and tracking across agencies. Operational adjustments within the Human Resources Information Technology Unit have also reduced Notice of Personnel Action processing timelines down to an average of two business days, outperforming the agency's baseline five-day performance indicator. 

The testimony also reviewed workforce retention initiatives and compensation adjustments, including the upcoming execution of a new General Schedule pay plan for non-union classified executive branch employees on October 1, 2026. Authorized under Executive Order No. 545-2026, the updated pay structure establishes a minimum baseline salary of $35,000 and mandates a one-step increase within assigned grades at an estimated fiscal implementation cost of $1.8 million. Richardson also provided updates on the ongoing GVI Fellows Program, which accounts for $959,879 of the operational request to develop future leadership pipelines, and noted that the Retirees’ Return to Work Program currently retains 12 participants assisting with critical institutional staffing shortfalls.  

Chief Negotiator Joss Springette, Esq., presented the Office of Collective Bargaining’s Fiscal Year 2027 budget an allocation of $1,574,728. The requested funding will stem entirely from local sources, as the agency does not receive federal funds. Operating from offices on both St. Thomas and St. Croix, the small six-member team exclusively represents the executive branch of the government in all collective bargaining, mediation, and arbitration proceedings. 

The baseline operational request allocates $867,215 for personnel services and $371,168 for fringe benefits, representing a combined 78.64 percent of the agency’s total fiscal projections. The remaining structural budget designates $163,345 for other services including rent and IT systems, $40,000 for equipment and supplies, and $13,000 for utility costs associated specifically with the St. Croix location. The agency is also requesting a $120,000 capital projects allocation to replace non-functional office copiers and get a new agency vehicle to replace a unit that was recently transferred for disposal. 

The testimony also addressed operational constraints within the legal division, reporting an active caseload of 473 pending cases as of May 31, 2026.Between October 2025 and May 2026, the office received 98 new cases but was only able to dispose of five disputes due to persistent vacancies in both of its attorney positions. To manage expanding client requests for legal advice and labor training, Springette noted that the agency is currently recruiting candidates to fill open slots for a financial management officer, a legal counsel, and a paralegal officer. 

Senators present at today’s committee hearing were Novelle E. Francis Jr., Marvin A. Blyden, Angel L. Bolques, Jr., Dwayne M. DeGraff, Hubert L. Frederick, Ray Fonseca, Carla J. Joseph, Avery L. Lewis, and Kurt A. Vialet. 

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