31 Jul
CANCELLED: Committee on Budget, Appropriations and Finance
Thursday, Frits E. Lawaetz Legislative Conference Room
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 St. Thomas East End Medical Center Corporation, the Department of Human Services, and Frederiksted Health Center.
Tess Richards, M.D., Executive Director of the St. Thomas East End Medical Center Corporation delivered its total proposed FY 2026 budget of $8,456,001. Of this, $2,500,000 is requested from the General Fund. There are 59 employees. Personnel salaries are projected at $4,506,008. Total Fringe benefits are projected at $1,752,280. Contracts and Professional Services is budgeted at a total of $659,600. Supplies and equipment are budgeted at $387,700. The costs of computers and Xerox is budgeted at $60,000. Traveling and continuing education is budgeted at $13,500. Insurance is budgeted at $60,000. Other charges are budgeted at $68,000. A total of $948,913 has been budgeted to cover essential infrastructure and operational needs. Additionally, Richards has requested an infusion of $2.5 Million that would be used to resolve outstanding debt.
Richards said that projected total revenue for FY 2026 is expected to reach $8,328,860. This includes $3,587,280 in program income, $1,461,580 from the HRSA 330 Cluster Grant, $350,000 through the Behavioral Health Integration – Evidence-Based Telehealth Program Grant, (REACH-USVI), $250,000 from the 340B Program, $180,000 in predicted reimbursements via Digiimed and $2.5 Million in requested GVI Appropriations. Richards voiced the concern over uncompensated care, saying that the proposed budget would help the Center cover those they treat every year. The number of self-pay patients has increased from 1,662 in 2023, 2,115 in 2024, and 2,407 so far in 2025, and more than one third of patients at STEEMC are uninsured and ineligible for insurance. 1/3rd of its services receives minimal compensation from patients. Richards has said that the Center has about $3.7 Million in vendor payments due but lacks sufficient funds to pay them. She said that the center can make monthly obligations, such as rent, but is unable to pay legacy debt. When asked by Senator Francis Jr. about what concerns her about the budget, Richards said that legacy debt is a major concern, as well cyber security, and staff concerns.
Averil George, Commissioner of the Department of Human Services defended its total budget of $297.2 Million. Of this budget, $228.1 million is expected to come from federal sources, while $69.16 million will come from the General Fund. This is a decrease of $1.8 Million from Fiscal Year 2025. George reminded the body that the General Fund now covers less than a quarter of total operations for the Department. Of the General Fund request, $19,556,499 is for personnel. $9,587,578 is allocated for Fringe. $952,111 is allocated for supplies. $35,694,006 is for other services, $192,812 is Capital, $2,625,000 is for utilities, and $545,000 is for Miscellaneous. The Federal Fund balance of $228.1 Million is for core programs that Virgin Islanders depend on such as Medicaid, SNAP, Childcare, disaster recovery and more. George said that while the passage of the “Big Beautiful Bill” did not immediately affect the department, new federal requirements for Medicaid, childcare, and SNAP/TANF would affect the Department in the future. The Department has a total of 654 active employees, with 348 in the St. Croix District and 306 in the St. Thomas-St. John District. There are 483 classified positions. There are 9 classified non-union positions. There are 90 exempt positions. There are 72 part time positions. There were 46 new employees in the Department. This included 14 new hires, 11 rehires, 12 promotions, 6 transfers between departments, and 3 transfers within DHS. There were 34 separations from the Department during this time. This included 19 retirements, 13 resignations and three deaths. There were 51 vacancies. George said that approximately $10 Million was owed in vendor payments. Additionally, rent payments are expected to increase due to temporary relocations to repair DHS in the territory.
Massarae Sprauve-Webster, Chief Executive Officer of Frederiksted Health Center, Inc. delivered its budget of $3 Million. This includes personnel services of $2,023,911, fringe benefits of $526,089, other services and charges of $200,000, and public utilities of $250,000. There are 25 filled positions. The proposed budget is unchanged from what was approved in Fiscal Year 2025. Sprauve-Webster informed the body that Frederiksted Health Center provided services to almost 9,000 individuals, most of which have income at or below 200% of the poverty level. According to Sprauve-Webster, 71% of patients have income at or below 100% of poverty guidelines, which translates to $15,650 per year or $1,304 per month. The Center has also provided health care for patients who are members of marginalized groups, including, but not limited to those who are being treated for HIV/AIDS and those who are chronically homeless. Sprauve-Webster voiced concern over the effects of the “Big Beautiful Bill”, which is projected to cost billions of dollars in higher uncompensated care, and would jeopardize care for many St. Croix residents. Recent issues for the health center include electrical problems at its Ingeborg Nesbitt location, which was closed due to a water leak. That issue then resulted in needed replacement of plumbing in the building. This cost the center $15,000 for diesel fuel to run a generator for three weeks, as well as repairs to the external wiring, at a cost of $22,000. $1 million was allocated to the Center after the passage of Act 8920 because of the Epstein Settlement Fund, but it has yet to receive the funds. Sprauve-Webster voiced the need to expand behavioral and dental health, as well as pharamaceutial services and fetal cardiology.
Senators present at today’s Committee hearing were Chairman Novelle E. Francis Jr., Dwayne M. DeGraff, Ray Fonseca, Marise C. James, Carla J. Joseph, Milton E. Potter, and Kurt A. Vialet.
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