Legislation includes $165 million for hospitals, utilities and waste management, along with funding for income tax refunds, retroactive wages and outstanding government obligations
U.S. VIRGIN ISLANDS — Governor Albert Bryan Jr. has transmitted proposed legislation to the 36th Legislature authorizing a $250 million bond-financing package to provide critical financial assistance to the Virgin Islands Water and Power Authority (WAPA), the Territory’s two hospitals and the Virgin Islands Waste Management Authority (VIWMA), while also addressing outstanding income tax refunds, retroactive wages and other government obligations.
The proposal seeks to ease longstanding financial pressures on essential public institutions, strengthen their ability to deliver services and establish accountability measures aimed at improving their financial stability over time.
Developed through the Financial Solutions Task Force established by Governor Bryan in July, the legislation proposes $165 million in combined assistance for the Territory’s hospitals, electric and water utility, and waste management authority.
Of that amount, $40 million would be allocated to WAPA and another $40 million to VIWMA to help address outstanding financial obligations and support the continued delivery of services that residents and businesses depend on daily.
Both authorities operate as semi-autonomous government entities with responsibility for managing their own operations and finances. However, longstanding financial challenges, outstanding obligations and the cost of maintaining essential services have placed considerable pressure on their ability to meet those responsibilities.
WAPA, in particular, continues to face significant financial demands associated with maintaining the Territory’s electricity and water systems, meeting outstanding obligations and making investments necessary to improve service reliability.
Likewise, the Territory’s two hospitals face significant financial and operational challenges as they work to provide critical medical care while absorbing tens of millions of dollars annually in uncompensated care costs. While the hospitals must continue providing essential care, these unpaid costs place considerable strain on their operating budgets, limiting resources needed to maintain services, support medical personnel and meet other critical obligations.
To help address these challenges, the proposed financing includes $85 million for the Territory’s two hospitals, with $45 million allocated to Schneider Regional Medical Center on St. Thomas and $40 million to the Governor Juan F. Luis Hospital and Medical Center on St. Croix.
Like WAPA and VIWMA, the hospitals operate as semi-autonomous government institutions with their own governing structures and financial responsibilities. The proposed assistance is intended to help stabilize their operations while supporting improvements in financial management and long-term sustainability.
Governor Bryan emphasized that strengthening the financial health of these institutions is essential to protecting the services residents rely on and ensuring that the Territory’s ongoing investments in infrastructure and health care deliver lasting benefits.
“These are obligations and financial pressures that already exist, and continuing to carry them without a comprehensive solution has a cost of its own,” Governor Bryan said. “Our goal isn’t just to meet the immediate financial need. It’s to make an investment today that puts these institutions in a stronger position tomorrow, with the resources and accountability they need to serve our people effectively.”
Beyond the $165 million proposed for these institutions, the financing package includes $30 million to address outstanding income tax refunds and retroactive wage payments owed to Virgin Islanders.
The legislation also provides $10 million for outstanding government vendor payments and $30 million toward repayment of an existing government line of credit.
An additional $15 million would support capital needs within the Legislative and Judicial branches and economic development initiatives through the Virgin Islands Economic Development Authority, with $5 million allocated to each.
A central component of the proposal is a series of financial accountability requirements designed to ensure the assistance provides more than temporary relief.
Participating institutions would be required to develop five-year financial sustainability plans, strengthen financial reporting and audit compliance, and establish measurable goals for improving operational efficiency and reducing their dependence on Central Government financial support over time.
The legislation also provides for regular progress reviews and corrective action when necessary to help ensure that participating institutions meet their financial and operational objectives.
These provisions recognize that while WAPA, VIWMA and the Territory’s hospitals provide essential public services, each institution retains responsibility for its own financial management and operations. The proposed financing is intended to support their financial recovery while reinforcing those responsibilities.
“As we make historic investments in rebuilding and modernizing our infrastructure, we also have to make sure the institutions operating those facilities have the financial resources and management systems necessary to serve our people,” Governor Bryan said. “That means addressing the immediate challenges while putting measures in place to strengthen these institutions for the long term.”
The proposed bonds would be backed by Gross Receipts Tax revenues and subject to defined limits on interest rates and repayment terms. The financing would require approval by the 36th Legislature before moving forward.
The Financial Solutions Task Force brought together senior administration officials and members of the Legislature to develop the proposal. Participants included Office of Management and Budget Director Julio Rhymer, Sens. Novelle E. Francis Jr., Marvin Blyden and Avery Lewis, Department of Finance Commissioner Kevin McCurdy, Virgin Islands Public Finance Authority Executive Director Nathan Simmonds and Division of Personnel Director Cindy Richardson.
Governor Bryan thanked the task force members for their work in developing the proposal and emphasized the importance of collaboration between the executive and legislative branches in addressing the Territory’s longstanding financial challenges.
“I urge the 36th Legislature to take up this measure expeditiously so we can get critical assistance to our hospitals, WAPA and the Waste Management Authority, while also addressing longstanding obligations to our residents,” Governor Bryan said. “We have an opportunity to provide meaningful relief now and establish a stronger financial foundation for the future. I believe this proposal gives us an opportunity to do that in a responsible and meaningful way.”
The Administration looks forward to working with the 36th Legislature to advance the proposed financing package and establish a more sustainable financial path for the Territory’s essential public institutions.
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