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 on St. Thomas to receive testimony for the Fiscal Year 2026 Budget from the Department of Planning and Natural Resources. Lawmakers also considered a measure that would increase the cost of bringing containers or flat rack containers into the US Virgin Islands. The item on today’s agenda was approved and will be forwarded to the Committee on Rules and Judiciary for further consideration and action.

Jean-Pierre Oriol, Commissioner of the Department of Planning and Natural Resources delivered its proposed total budget of $146,949,100. Of this, $7,009,487 is from the General Fund, $10,861,427 is from Non-Appropriated Local Funds and $129,078,186 is from Federal Grants. Approximately $100 Million of the allocated federal funding is for land acquisition and infrastructural grants that pass through DPNR and do not support departmental operations. The Fiscal Year 2026 General Fund appropriation is the same as it was in Fiscal Year 2025. From the General Fund, $4,894,087 is for Personnel and Fringe Benefits. This supports 61 positions, including 23 exempt and 38 classified positions, $238,302 for Supplies, $1,271,514 for Other Services and Charges, and $605,584 for utilities. The appropriation also covers required local match funding for several federal grants, including the Virgin Islands Council of the Arts, and supports mandated obligations such as the Tutu Wells Mitigation Site and the Virgin Islands Historic Preservation Commission.

Oriol has made mention of supplemental budgets, one to support existing staff and fill vacancies within the Division of Permits, and another to fund the Division of Libraries, Archives, and Museums, saying that the current budget did not allow for the retention and recruitment of the appropriate staffing. Oriol reminded the body that it could not reopen libraries without this funding. Three divisions, CZM, CCZP and DFW, are fully funded by federal grants or non-appropriated local funds. Federal awards make up most of the Department’s funding, contributing about 88% or $129,078,186 of the overall budget. Within this federal funding, Personnel Services is at $9,449,063 which covers salaries and fringe benefits for 102 positions (43 exempt, 59 Classified); Supplies at $1,268,951; Other Services and Charges at $87,276,800; Utilities at $35,500, Indirect Cost at $1,727,423 and Capital Outlay at $29,320,449.  

Senators also considered Bill No. 36-0039, An Act amending title 33 Virgin Islands Code, chapter 4 by increasing the costs to bring containers or flat rack containers into the Virgin Islands. The measure was proposed by Senator Angel L. Bolques, Jr.  

Julio Rhymer Sr., Director of the Office of Management and Budget stated that the Cargo Container Tax rates, established in 2003 are $50 for containers under 39 feet and $100 for containers over 40 Feet. The revised rates would be $100 for containers under 39 feet and 200 for containers over 40 feet. Rhymer also proposed a Container Documentation Fee of $25 per container to support administrative oversight, as well as implementing a Recordation Technology Fee of $3 per container to fund technology requirements, improvements, and enhancements. Rhymer stated that the Cargo Container Tax has remained unchanged for the past 22 years and needs to be adjusted to account for inflation and administrative costs. While Rhymer agreed with amending the law to increase the container tax, he disagreed with the distribution of funds 50/50 with the Virgin Islands Waste Management Authority, calling on the Government of the Virgin Islands to establish rates for solid waste collection. Rhymer proposed that the potential revenues be split 75% between the General Fund and 25% to the Anti-Litter Beautification Program.

In testimony read into the record from Joel Lee, Director of the Bureau of Internal Revenue, the proposed measure would increase the rate from $50.00 to $100.00. For containers and flat racks that measure 40 feet, the container tax would be increased from $100 to $200. For flat rack containers that measure 45 feet in length, the new fee would be $205.00. Lee’s testimony said that the bureau reviewed the last three years’ collections of the container tax and there were 3,153 under 39 feet containers imported, and 16,322 40 feet containers imported in that time. Lee’s testimony said that based on these numbers, the annual increase in revenue would be $157,650 for under 39 feet, and $1,632,200 for 40 feet. There is not a documented history of on the number of flat beds imported for 45 feet, as this category did not exist previously.

Daryl Griffith, Interim Executive Director and Chief Financial Officer of the Virgin Islands Waste Management Authority delivered testimony in support of the measure. Griffith said that the Authority has been underfunded for its entire existence, leading it to accumulate an Accounts Payable of over $20 Million. 50% of the revenue would be directed to the Anti-Litter and Beautification Fund, and 25% would be directed to garbage collection, trash removal, and beautification projects Griffith stated that if the proposed measure was successful, in addition to the proposed garbage collection fees, it would allow the Authority to more than break even, as well as paying past due balances owed to vendors.

Testimony read into the record from Nisha Aubain, VI Trade Manager at Tropical Shipping, reminded the body that it is important to note that flat racks and containers are instruments of trade used for the safe carriage of goods and materials on containerized cargo vessels, and they also support the safe delivery of the cargo purchased by the customers.  Aubain noted that the proposed doubling of fees as proposed by the measure would require the shipping lines to recover those increased costs. After further discussion, the measure was voted upon favorably.

Senators present at today’s Committee hearing were Chairman Novelle E. Francis Jr., Vice Chairman, Marvin A. Blyden, Dwayne M. DeGraff, Hubert L. Frederick, Ray Fonseca, Marise C. James, Angel L. Bolques, Jr., Clifford A. Joseph, Sr., Avery L. Lewis, and Milton E. Potter.

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