ST. THOMAS, VI – The Committee on Budget, Appropriations, and Finance, chaired by Senator Novelle E. Francis Jr., met in the Frits E. Lawaetz Legislative Conference Room on St. Croix to receive testimony for the Fiscal Year 2026 Budget from the Election System of the Virgin Islands, the Virgin Islands Water and Power Authority, and the Schneider Regional Medical Center. 

Caroline Fawkes, Supervisor of Elections delivered the proposed FY 2026 Budget of $2,553,500. Personnel Services totals $1,096,000, Fringe Benefits $347,000, Supplies $35,000, Professional Services and Training $986,500, and Utility Services $89,000. There are twelve employees, eight are classified and four are exempt. Fawkes stated that the annual increases in the costs of professional service contracts are expected to rise. Additionally, staff central processing units for their desktops are expected to be upgraded, as well as replacing office furniture. As of July 31, 2025, the Office of the Supervisor has expended approximately 73% of its FY 2025 Budget, totalling $1,825,144. There is approximately $206,138.20 in outstanding vendor payments. The Election System is also requesting an additional budget of $650,000 to conduct the 2026 Primary and General Elections. This does not include funding in case of a run-off election. As of July 31, 2025, there were 27,894 total active registered voters in the territory. Of these active voters, 13,967 are in St. Croix, 12,866 are in St. Thomas and 1,061 are in St. John. There is a total of 28,049 inactive registered voters in the territory. Of these inactive voters, 12,996 are in St. Croix, 13,768 are in St. Thomas and 1,285 are in St. John.  

The Board of Elections proposed budget for Fiscal Year 2026 totals $381,429.40. This includes Personnel Services of $74,000, Fringe Benefits of $34,029.40, Supplies of $14,400, Capital Outlays of $95,000, and Other Services of $164,000. Upgrades are expected for the Board of Elections’ video teleconferencing system, as well as vehicles. As of July 31, 2025, the Board of Elections has expended 62% of its budget, or $154,074. Outstanding vendor payments total $13,128.37. The Board has also recently launched an online voter registration portal. Fawkes stated that challenges included the ability to engage citizens, the conditions of voting centers, funding issues, and combatting misinformation.  

Karl Knight, Chief Executive Officer and Executive Director of the Virgin Islands Water and Power Authority, delivered the proposed budget of $325.2 Million. WAPA’s Fiscal Year runs from July 1 to June 30. As a semi-autonomous agency, WAPA does not receive any money from the General Fund. The anticipated expenditure to be disbursed from operating funds is $334.8 Million. This includes $30.8 million in debt service and $500,000 for Payment in Lieu of Taxes (PILOT). The Authority also expects at least $2.5 Million in federal reimbursement for administrative costs associated with FEMA funded disaster recovery projects. It is expected that there will be a budget shortfall of $9.6 Million for Fiscal Year 2026. WAPA uses two types of fuel for power generation, liquefied petroleum gas (LPG) and light fuel oil (diesel). It is expected that fuel expenditures will total $141 Million. Fuel Costs for FY 2025 totalled $165 million. The decrease is attributed to improved plant efficiency due at the Harley Plant to the addition of the Phase II Wartsila engines, a full year of production at the Petronella and Hogensborg Solar Farms and the current lower spot rate fuel prices, which are expected to remain at the current rate. Operating expenses total $104 Million. Personnel expenses total $61.3 Million.  

The Authority has a total of 522 full time employees. A total of thirty-six positions were eliminated in the FY 2026 budget because of cost reduction measures. Of those positions, six positions funded through operating funds have now been transferred to federal grant funding. Eight new positions for tree trimmers have also been included in the budget. Knight reminded the body of the Authority’s fiscal challenges, stating that it has operated with a structural deficit, stating that revenue collections do not meet operating expenses. It has operated with a monthly cash deficit as high as $8 Million in Fiscal year 2024, which has been reduced to $3 Million to $3.5 Million throughout Fiscal year 2025. This resulted in a cumulative shortfall between $36 Million and $42 Million. The Central Government provided $16.5 Million in subsidies to fuel and vendor payments. It is expected that the budgetary shortfall for FY 2026 will decrease to $9.6 Million. Current accounts payable is $104.1 Million, owed to about 185 local vendors.  

Tina Commissiong, Esq., MPA, Chief Executive Officer of the Schneider Regional Medical Center, saying “healthcare is expensive,” requested a total budget appropriation of $112.2 million, which exceeds the executive branch’s recommendation of $31,750,000. That budget includes Roy L. Schneider Hospital, The Myrah Keating Smith Clinic, and the soon to reopen Charlotte Kimmelman Cancer Institute. This would cover a number a cost including Salaries and wages, benefits, staffing costs, materials, and supplies. SRMC currently has $44.6 million in Accounts Payable. GERS Debt has reduced from $20.2 Million to $12.9 Million. However, $2.4 Million is owed to IRB in taxes. It is expected that CKCI will cost $8.9 Million to operate during its first year. It is expected that CKCI will operate at a shortfall of $4.8 Million in its first year of operation. A separate line item of $4.8 Million has been requested by SRMC to help reopen CKCI by December 2025/January 2026. SRMC has been dealing with aging infrastructure, with expensive repairs to AC, Generators and boilers needed. After having suffered two cyber-attacks in the last calendar year, Commissiong voiced the need to enhance its IT infrastructure. Borders have remained an issue, which have cost approximately $6 Million a year.  

Senators present at today’s Committee hearing were Chairman Novelle E. Francis Jr., Vice Chair Marvin A. Blyden, Ray Fonseca, Marise C. James, Franklin D. Johnson, Carla J. Joseph, Milton E. Potter, and Kurt A. Vialet.  

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