V.I. Public Finance Authority Seeks 40 Percent Budget Increase for FY2025

The V.I. Public Finance Authority is requesting a 40 percent increase over its FY2024 budget for a total proposed appropriation of $27.42 million. This percentage represents $7.84 million more than their appropriation for the previous fiscal year.‌

Nathan Simmonds, director of finance and administration at the PFA, explained to lawmakers on the Committee on Budget, Finance and Appropriations on Tuesday that the jump is “due primarily to increased funding required for the Office of Disaster Recovery as they become a sub-recipient for the CDBG-DR program administered under the Housing Finance Authority.” Additionally, “the build-out of the Super Project Management Office established to execute Rebuild USVI” will also require new funding.

A breakdown of the proposed budget as explained by Mr. Simmonds includes $5 million from gross receipt taxes and $9 million in general fund appropriations. Another $11.52 million will come from federal reimbursements, while the Frederiksted Mall, managed by the PFA, is expected to generate a mere $85,000 in revenue toward the authority’s budget. The PFA will also access $1.81 million from the PFA Project Fund. Of the $9 million request from the general fund, $5 million will provide “operational support” to the PFA, while ODR will use $4 million for the same purpose.