OMB conference projected steady Virgin Islands revenue in fiscal 2024

The Virgin Islands Office of Management and Budget said at its Spring Revenue Estimating Conference on March 14, 2023, that government revenues were expected to remain steady in fiscal 2024, with an increase of about $10 million over fiscal 2023 collections.

The conference was held at the University of the Virgin Islands' St. Thomas campus. OMB said the meeting was one of two annual revenue estimating conferences required by law.

According to the presentation, the U.S. economy remained resilient in 2023 despite tighter financial conditions, though OMB said economic expansion remained fragile and subject to downside risks.

Tourism Commissioner Joe Boschulte told the conference that the territory's tourism sector was expected to continue growing, with additional hotel rooms projected to come back online on St. Thomas in 2023 and 2024. He said the department projected tourism growth of 3.5% in fiscal 2023 and 6% in fiscal 2024, with hotel room tax revenue of $36.8 million in fiscal 2023 and about $39 million in fiscal 2024.

Boschulte also said cruise passenger totals territorywide were expected to rise by 640,000 in 2023, and that St. Croix cruise passenger traffic was projected to increase 80% from 2022.

Other agency presentations cited revenue gains tied to administrative changes, including streamlined business licensing, online vehicle registration and online property tax collections. Department of Licensing and Consumer Affairs Commissioner Richard Evangelista said the division issued 13,251 business licenses in 22,054 categories in the prior year, and 4,653 licenses in 7,799 categories through Feb. 28, 2023.

Gov. Albert Bryan Jr. said the government should remain cautious about adding fixed costs despite stronger revenue projections.

Official source: https://www.vi.gov/ombs-spring-revenue-estimating-conference-forecasts-continued-fiscal-stability-with-slight-increase-in-capital/