Dept. of Education Struggles with Slow Federal Funds Spending, Seeks $170 Million Budget for FY2025

The V.I. Dept. of Education is grappling with the slow pace of spending federal funds. As of June 2024, the department had obligated $76,998,638.20, which must be spent by September 30th, 2024, while another $68,603,495.76 remains to be obligated before the deadline.

Education Commissioner Dionne Wells-Hedrington acknowledged during Monday's budget hearing that “large unobligated balances still exist” despite the influx of federal dollars.

Lawmakers have urged government entities to expedite the use of federal funds. “Those federal dollars are critical to us in the territory, and we need to ensure we can utilize, if not all, as much as possible," stated Senator Marvin Blyden.

Keisha Culpepper-Smith, VIDE’s federal grants director, stated, “We are working to get those funds obligated by August 31.” The slow spending is attributed to factors such as supply and demand shortages and the need for budget modifications.

Additionally, the Department of Education has allocated only $5 million for utilities for fiscal year 2025. By June 2024, VIDE had already spent $7.2 million on utilities. Senator Donna Frett-Gregory expressed her concerns, stating, “You see why this territory has a structural deficit? Because we budget for less than what we need.” She called for updated projections to better guide the budget for utilities in FY2025.