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Anticipated Resolution to Rum Cover-Over Financial Shortfall Expected By Year’s End; Chairman of House Ways and Means Committee Expresses Hope

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Post his recent summer sojourn to the U.S. Virgin Islands, the esteemed Chairman of the House Ways and Means Committee, Jason Smith (R-MO), radiates hope regarding the advancement of a tax proposal. This package, projected to see the light of day by the year’s end, is likely to encompass a clause for extending the excise tax rate “cover-over” to both Puerto Rico and the USVI.

At a freshly convened media gathering, Rep. Smith shared insights on the series of “productive dialogues” he engaged in with his Senate counterpart, Ron Wyden (D-OR). He envisions a legislative avenue that could pave the way for a ratified bill before the year curtains down. He accentuated the lapse of widely-endorsed bipartisan tax clauses, like the rum cover-over extender, and a burgeoning keenness to tackle the matter head-on.

Echoing a similar sentiment, the USVI’s Congressional Delegate, Stacey Plaskett, showcased her positive outlook that the clause would traverse smoothly across the bipartisan aisle. Yet, regarding Mr. Smith’s anticipation of an approval by the year’s culmination, the congresswoman has adopted a more guarded stance.

She underscored the noteworthy allocation of rum cover-over funds ($212M) that VI has garnered this year. While expressing hope about the extension of the $13.25 rate in the imminent tax bill marked up this week in the Ways and Means Committee, she acknowledged the presence of contentious clauses in the year-end tax bill which could pose hurdles for its Senate passage. “Our concerted efforts with the Governor’s ensemble and the Ways and Means Committee persist towards transmuting the rum cover-over extension into law,” she elucidated during a Tuesday morning dialogue with the Consortium.

In his latest briefing to the territory on Monday, Governor Albert Bryan Jr. reemphasized the paramount importance of receiving the “extended” rate of $13.25 per gallon as opposed to the present statutory cap of $10.50. This, he affirmed, is instrumental for the sustenance of the Government Employees Retirement System (GERS). He elaborated on the adverse impact of underfunding the system, which essentially truncates the tenure of its financial fortitude.

Despite the variance between anticipated and actual revenues, Governor Bryan voiced no immediate apprehensions regarding the GERS’s short-term stability. He acknowledged, however, the augmented utility of the additional funds amidst the prevailing economic climate, particularly with the soaring interest rates.

The advocacy for a permanent elevation of the cover-over rate continues unabated on various governmental strata. Governor Bryan elaborated on the ongoing collaborative endeavors “alongside our delegate, our lobbyists, key congressional and senate figures, and the White House, striving for its ratification.”

Terry Helenese, the Director of State-Federal Relations and Washington Representative for the territory, reiterated, “Our Washington cadre is tirelessly advancing the vital rum cover-over clause in the tax extension package, aiming for its passage before December 31, 2023.” She lauded Rep. Smith’s recent backing of the measure and assured that their advocacy would remain unwavering, leaving “no stone unturned” in championing the cause.

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Government

Central Government Staff Honored at Employee of the Year Ceremony

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The Government of the Virgin Islands recently celebrated its most outstanding employees in a series of ceremonies on St. Croix and St. Thomas. More than 6,000 government employees were eligible, but only a select few were honored for their exceptional service and contributions to their divisions and the community.

At the ceremony in St. Croix, Division of Personnel Director Cindy Richardson highlighted the critical role these employees play in enhancing the operations of their agencies and improving the quality of life across the territory. She lauded the honorees for their exemplary service and professionalism.

Governor Albert Bryan Jr. dispelled the notion that government workers are lackadaisical, instead praising the honorees for their dedication and impact. “You are pretty special,” he affirmed, acknowledging their positive influence within the community and among their colleagues.

Senate President Novelle Francis identified the honorees as the “cream of the crop,” and spotlighted Alfred Donowa, the employee of the year from the facilities management division in St. Croix. Donowa was praised for setting a high standard for his team. In St. Thomas, Adele Thomas was recognized as the employee of the year for her role as a receptionist in the Legislature’s offices.

The Lieutenant Governor Tregenza Roach also took part in the celebrations, commending employees like Carmen Francis from the Real Property Tax Division for her exceptional customer service, and Chris George from the Geographic Information Systems Division for his leadership.

The ceremonies not only recognized the honorees’ professional excellence but also their passion for their roles within the government. Lieutenant Governor Roach emphasized the importance of ongoing professional development to maintain job satisfaction and retain valuable staff.

The list of honorees included individuals from various departments such as Rachel Haverkorn of the Office of the Governor and Marianne Navarro from the Virgin Islands Lottery. From the Department of Agriculture, Maxine Richards was honored, and from the Department of Licensing and Consumer Affairs, Diana Gumbs took the title. Belgrave Stedman was recognized from the Water and Power Authority, celebrated for his achievements despite public skepticism about the utility’s successes.

These ceremonies serve as a vital reminder of the dedicated individuals who contribute significantly to the functioning and improvement of government services in the Virgin Islands.

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Governor Bryan Nominates Gordon Rhea as USVI’s New Attorney General

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Governor Albert Bryan Jr. announced the nomination of Gordon Rhea as the new Attorney General for the U.S. Virgin Islands during a press conference on Monday. Highlighting Rhea’s extensive background, Governor Bryan described him as a candidate with unmatched legal expertise and service record. Rhea’s educational journey includes degrees from Indiana University, Harvard University, and Stanford Law School.

In his early career, Rhea distinguished himself as a criminal defense attorney in Los Angeles, later contributing his expertise in Washington D.C. at the Senate Select Committee on Intelligence Activities. His professional tenure in the Virgin Islands spans over 40 years, initially serving as an assistant U.S. Attorney before moving into private practice.

Governor Bryan emphasized Rhea’s pivotal role in leading high-profile cases that have shaped the legal landscape in the territory. “His firm addressed some of the most significant legal challenges our community has encountered, such as landmark litigation against prominent industrial corporations concerning toxic exposures and environmental damage. These actions have protected our workforce and natural resources for future generations,” Governor Bryan stated. He specifically noted Rhea’s leadership in securing the largest civil jury verdict in the territory’s history, crucial for public health improvements.

Responding to his nomination, Rhea expressed his enthusiasm about the opportunity to serve as the Attorney General. Addressing potential conflicts of interest, particularly Rhea’s prior representation of a defendant in the Virgin Islands’ lawsuit against Jeffrey Epstein’s estate, Governor Bryan reassured that Rhea could recuse himself from any related cases to avoid conflicts.

Governor Bryan also shared his expectations for utilizing funds from the Epstein lawsuit, earmarked for the Justice Department. He expressed hope that under Rhea’s leadership, and pending confirmation, the funds would be used to enhance anti-trafficking initiatives and policies, pending legislative approval, which Rhea’s predecessor deemed necessary.

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New Legislation Proposes Electing Attorney General in US Virgin Islands

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Following the departure of Ariel Smith from the office of attorney general, a renewed focus has been placed on the high turnover rate among appointees to this position. This situation has spurred legislative action aimed at allowing the residents of the Virgin Islands to elect their attorney general, a proposal brought forth by Senator Alma Francis Heyliger. During a legislative session on March 25, Heyliger introduced Bill 35-0248, emphasizing the necessity to diminish the political influences on the attorney general’s office.

The forthcoming committee discussions will determine the feasibility of requesting Congress’s permission for the USVI to hold elections for the attorney general’s position, a timetable for which remains to be established. Heyliger highlighted the urgency and the widespread desire for this change, noting the successful implementation of elected attorneys general in over 40 states across the nation. She also referenced a past referendum where a significant majority of Virgin Islands residents—76 percent—voted in favor of electing their attorney general, indicating a strong local push for this amendment.

Currently, Ian Clement serves as the acting attorney general, succeeding Ariel Smith, who held the position for less than a year. Smith had been appointed by Governor Albert Bryan Jr. in March 2023, following Denise George’s dismissal, who had served for four years. This legislative proposal marks a pivotal step towards aligning the Virgin Islands with the broader trend of electing attorneys general, aiming to enhance the office’s independence and accountability to the public.

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