ST. THOMAS, U.S. VIRGIN ISLANDS — The Committee on Budget, Appropriations, and Finance, chaired by Senator Novelle E. Francis Jr., convened at the Earle B. Ottley Legislative Hall to receive testimony on the proposed Fiscal Year 2027 budgets for the University of the Virgin Islands (UVI) and the Virgin Islands Department of Tourism (DOT). Lawmakers also voted in the affirmative on three lease agreement measures involving the St. Thomas Cricket Association Inc., L.J. Auto Repairs LLC, and Paradise Paws LLC. The measures will be forwarded to the Committee on Rules and Judiciary for further consideration.

Setting the tone for the hearing, Committee Chairman Senator Novelle E. Francis Jr. emphasized that clear, complete, and transparent testimony is essential to ensuring lawmakers make informed appropriation decisions that reflect the needs and priorities of the Virgin Islands.

The University of the Virgin Islands President Dr. Safiya George presented a proposed Fiscal Year 2027 budget request totaling $39.5 million, including a $29.55 million general operating appropriation and $9.61 million in supplemental funding to support employee compensation, operational expenses, workforce development, academic programs, and institutional priorities. The proposal reflects recent enrollment growth, improved student retention, and continued investments in academic excellence while addressing challenges that include delayed government allotments, recruitment and retention of qualified employees, accreditation requirements, and rising health insurance and utility costs. 

During the discussion, Senator Novelle E. Francis Jr. inquired about the funding needed to address rising utility costs in Fiscal Year 2027. An additional $1 million was requested to offset increased Virgin Islands Water and Power Authority (WAPA) expenses, including higher energy consumption costs and equipment replacements resulting from high-voltage fluctuations. Cost-containment initiatives have reduced operating expenditures by approximately $3.3 million through reductions in non-essential travel, strengthened purchasing controls, limited discretionary spending, contract reviews, hiring oversight, and improved energy efficiency. To ensure the long-term sustainability of the Virgin Islands Free Tuition Program, a permanent annual appropriation of $3 million was requested to continue expanding access to higher education and strengthening the Territory's future workforce.

The Virgin Islands Department of Tourism Commissioner Jennifer Matarangas-King testified that the Department's Fiscal Year 2027 budget request, reflecting the Governor's proposed $39 million appropriation from the Tourism Advertising Revolving Fund, which maintains the Fiscal Year 2026 funding level established under Act No. 9027. The proposal supports personnel, destination marketing, advertising and promotion, visitor experience initiatives, festivals, public relations, professional services, and other operational priorities that strengthen tourism as the Territory's primary economic driver. Fiscal Year 2026 also included an additional $35,000 to support the St. John Legendary Rhythm & Blues Cruise Day celebration. DOT cited record-breaking visitor arrivals, expanded airlift, increased cruise tourism, and continued growth in hotel occupancy and tourism revenues among its key accomplishments, while identifying airline instability, airspace disruptions, and extreme weather events as continuing challenges facing the tourism industry.

Lastly, lawmakers voted in the affirmative on three lease agreement measures sponsored by Senator Milton E. Potter at the request of the Governor, authorizing lease agreements between the Government of the Virgin Islands and the St. Thomas Cricket Association Inc., L.J. Auto Repairs LLC, and Paradise Paws LLC. The measures were forwarded to the Committee on Rules and Judiciary for further consideration.

• Bill No. 36-0293 An Act approving the lease agreement between the Government of the Virgin Islands and The St. Thomas Cricket Association Inc. for Parcel No-2 of Tract I Estate Nazareth, No. 1 Red Hook Quarter, St. Thomas consisting of 312,150.96 sq. ft. or 7.166 US acres. 
• Bill No. 36-0311 An Act approving a multi-year lease agreement between the Government of the Virgin Islands, acting through its Commissioner of the Department of Property and Procurement, and L.J. Auto Repairs LLC, for a portion of Parcel No. 22 Revised Submarine Base, No. 6 Southside Quarter, St. Thomas, consisting of 3,400 U.S. sq. ft. or 0.078 U.S. acre(s), more- or-less, of semi-improved land to operate a garage and auto repair shop. 
• Bill No. 36-0331 An Act approving the lease agreement modification extension between the Government of the Virgin Islands, acting through the Commissioner of the Department of Property and Procurement, and Paradise Paws LLC, for Parcel No. 180-1 Submarine Base, No. 6 Southside Quarter, St. Thomas. 

Senators present at the committee hearing were Novelle E. Francis Jr., Marvin A. Blyden, Hubert L. Frederick, Marise C. James, Milton E. Potter, Dwayne M. DeGraff, Ray Fonseca, Avery Lewis, Kurt A. Vialet, Clifford Joseph, and Carla J. Joseph. 

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