ST. THOMAS, VI - The Committee on Budget, Appropriations, and Finance, chaired 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 Virgin Islands Economic Development Authority, the Government Employees Retirement System, and the Virgin Islands Taxicab Commission.

Wayne Biggs, Jr., Chief Executive Officer of the Virgin Islands Economic Development Authority delivered a proposed budget of $7,277,285. This includes a General Fund appropriation of $6,613,000, which was the same amount of funding provided since Fiscal Year 2022. Internally generated revenue of $664,285 is included, comprised of an annual transfer from the EDC Industrial Promotion Fund, interest from the Micro Loan Fund, and other miscellaneous revenue. Personnel services account for most of the operating budget, totaling $5,082,832, about 70% of total expenditure. The Authority has 44 full-time positions. Thirty-one are classified, and thirteen are unclassified. Twenty-five positions are on St. Thomas and nineteen are on St. Croix. There are two vacancies. The authority also supports four full-time employees on St. Croix at the Economic Development Park Corporation, as well as a grant funded position under the State Small Business Credit Initiative Program. $562,638 is allocated to professional services. $456,410 is allocated for advertising and promotional activities.

Major accomplishments from the Authority include the deployment of approximately $16.3 Million in SSBCI support, the leveraging of approximately $28.9 Million in private financing, the approval of 89 VI Slice Applications, providing of $9.2 Million in gap financing, and the leveraging of $27.1 Million in mortgage financing. Key hospitality and tourism projects include the opening of the Hampton by Hilton Hotel on St. Thomas in August 2025, the Club Med Redevelopment on St. Croix, a future Botany Bay Hotel on St. Thomas, and a future Best Western Aiden hotel project on St. Croix.

Angel E. Dawson, Jr., Administrator and CEO of the Government Employees Retirement System delivered an overview of its overall operations. The GERS is not required to submit a budget to the Legislature for approval. GERS has approximately eighty employees. According to Dawson, GERS manages an investment portfolio of approximately $500 Million in investments and has earned 15.9% on year return and 9.9% FY 2026 year to date return. Investment returns have exceeded expectations of 6% for four consecutive years. Total assets increased from $400 million in 2022 to approximately $575 million in 2025. Dawson highlights stronger performance at the Havensight Mall, expansion of loan and retirement programs, plans for middle income housing on St. Thomas and St. Croix, and the modernization of pension administration.

The system has faced funding challenges. There was a shortfall of $21.7 million in 2026. These shortfalls have significantly reduced asset growth. The system remains only 14.8% funded, with $3.88 billion in pension liabilities, $575 Million in assets, and $3.31 Billion in unfunded liabilities. Dawson warned that continued funding note shortfalls could lead to temporary insolvency between 2033 and 2039. Up to $360 Million in government General Fund support may be needed to maintain full benefit payments. There are currently 8,773 retirees and beneficiaries in the system. There are currently 9,373 active members in the system. Benefits paid during the first 10 months of FY 2026 totaled $228.9 Million. Several semi-autonomous agencies owe GERS a total of $72.5 Million. These include WAPA, owing $28.4 Million, Schneider Regional Medical Center, owing $27 Million, Juan F. Luis Hospital, owing $14.3 Million, and the Waste Management Authority, owing $2.8 Million.

Melissa Smith, Executive Director of the Virgin Islands Taxicab Commission, delivered a proposed budget of $554,637. Of this, $395,603 is derived from the Taxi Revolving Fund, and $160,440 is from the Tourism Revolving Fund. As of June 2026, the Commission collected $245,624.80 in revenue. There are four employees and an executive director. Smith reminded the body that its current funding levels do not adequately support the operational needs of the agency. Based on staffing, enforcement, technology, and infrastructure requirements, Smith stated that the Commission would need approximately $1.5 million annually to operate properly.

Smith stated that the hiring of two taxi inspectors has resulted in a notable decrease in reporting and operation of illegal taxi services. Document approval times have improved dramatically, from approximately 30 days to same day or next day services. The Commission has processed more than 3,500 transactions. In partnership with the Department of Tourism and UVI CELL, the commission processed over three hundred aspiring taxi operators. Smith also urged the body to assist the Commission with staffing and enforcement, stating that it needed two taxi inspectors, two administrative secretaries, and an Executive Director. Smith also stated that to maintain visibility, compliance, and public safety throughout the territory, the Commission requires additional taxi inspectors, assistant director/special assistant, collection clerk, and an administrative secretary.

Smith reminded the body that the Commission currently relies heavily on paper-based systems that create inefficiencies, which cause delays at the agency. The Commission is currently working with the Office of Management and Budget, the Department of Finance, and the Bureau of Information Technology to implement point of sale systems, digital records management, secure document storage, automated processing systems, and enhanced reporting capabilities. Smith said that this modernization would require an investment of $200,000 to $400,000.

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

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