GVI Faces $68 Million Shortfall as Expenses Outpace Revenue; Agencies Plan Aggressive Fee Collection

The Government of the Virgin Islands is currently some $68 million behind in forecasted revenues for the 2024 financial year to date, according to Finance Commissioner Kevin McCurdy.

Mr. McCurdy, the final presenter during Tuesday’s Spring Revenue Estimating Conference, disclosed that revenue collections have plummeted in all categories, bar one. “We’re essentially back to 2019 levels in terms of our collections,” Mr. McCurdy explained. These revelations from the Department of Finance underscored the recurring theme of Tuesday’s conference: the need for new revenue-generating activities.

Office of Management and Budget Director Jenifer O’Neal called for revenue-generating government entities to “do their part,”, urging various departments to hit the ground running on projects currently in the pipeline. She also made a case for more aggressive revenue collections, explaining that “we are kind of tapped out with the revenue [sources] that we have.” Ms. O’Neal also tasked the legislative branch of government to come up with new revenue streams, and called for a holistic approach. “The effort has to be there,” she implored.

Meanwhile, with expenditures quickly outpacing revenue collection, Governor Albert Bryan Jr. suggested that the territory may need to also host an estimating conference for cash outflows. “Expenses are what our real problems are,” he lamented, noting that the “rapid pace of inflation” continues to burden the territory. “Inflation is real for the government too,” he noted, looking cautiously ahead to the new projects expected onstream in the coming months. “Even though the money looks good, the expenses are increasing exponentially,” Governor Bryan said, advocating for a “conservative” approach to budgeting and a “realistic look at expenses” to stabilize the territory’s financial outlook.