U.S. VIRGIN ISLANDS — Governor Albert Bryan Jr. is urgently calling on the 35th Legislature to take decisive action to ensure the Government of the Virgin Islands can meet its immediate financial obligations. The Governor is asking the Legislature to either expand the previously approved $100 million line of credit to the administration’s initial request of $150 million, with the ability to use the additional $50 million to address outstanding vendor payments and income tax refunds owed to Virgin Islanders, or to approve a separate $50 million line of credit specifically for these purposes.
“This request is more imperative than ever,” Governor Bryan stated, “given the recent extension of the corporate income tax filing deadline by the federal government from October 2024 to February 2025—a delay expected to significantly impact our revenue collections and, ultimately, our cash flow and ability to meet these urgent obligations.”
Governor Bryan emphasized that this $50 million is crucial for ensuring the timely disbursement of income tax refunds and settling outstanding vendor payments. “Our vendors and residents are depending on us. The timely payment of income tax refunds and settling outstanding vendor obligations is a matter of fairness and trust,” said Governor Bryan. “We must take decisive action now to address these pressing needs and maintain the confidence of those who have placed their trust in us.”
In June 2023, the Legislature approved a $100 million line of credit; however, they limited its utilization to only funding the federal match requirement on hurricane recovery projects, excluding its use toward the Government’s operations, such as vendor payments and income tax refunds. The administration utilized and successfully repaid $45 million from this line of credit to acquire propane terminal infrastructure from VITOL on behalf of the Virgin Islands Water and Power Authority, demonstrating its commitment to prudent financial management.
Additionally, the Office of Disaster Recovery has utilized $31 million of the $100 million line of credit to meet the federal match for key recovery projects. Of the $31 million utilized, $21 million has since been paid back to the line, further underscoring the administration’s diligent financial stewardship and commitment to maximizing the use of available resources for the territory’s recovery.
As larger recovery projects begin, the administration will need continued access to these funds to sustain momentum as the Rebuild USVI initiative launches. Rebuild USVI will initiate $2 billion in critical recovery projects across the territory, including the construction of new schools and medical facilities. Given the scale and importance of these projects, maintaining access to the full $100 million line of credit is essential.
However, to ensure the Government can meet its immediate financial obligations without hindering ongoing recovery efforts, Governor Bryan is now asking the Legislature to either expand the line of credit to $150 million or approve a separate $50 million line of credit. “While we continue to make strides in our recovery efforts, we must also ensure that our immediate financial obligations are met without delay,” Governor Bryan stated. “The recent extension of the corporate income tax filing deadline will constrain our revenue collections in the coming months, making it crucial that we have the financial flexibility to respond to our most urgent needs.”
“This is not just about managing the government’s finances responsibly; it’s about doing right by our people and our local businesses. By either expanding the current line of credit or approving a separate one, the Legislature will enable us to meet our commitments and provide the relief and support our community needs,” Governor Bryan added.
The Governor is hopeful that the 35th Legislature will work collaboratively with the administration to swiftly approve one of these options. “We all share the same goal: a stronger, more resilient Virgin Islands,” Governor Bryan concluded. “I am confident that by working together, we can achieve this and continue to build the brighter future that our people deserve.”
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