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Uncertainty Surrounds Renewal of Expired Farming Leases: A Challenge for the Dept. of Agriculture

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The Department of Agriculture (D.O.A.) is currently navigating murky waters with several of its 47 farming lessees whose agreements have expired. Louis Petersen, the D.O.A. commissioner nominee, recently shared insights on the lease renewal situation in a Senate Committee briefing.

Out of the expired agreements, a majority are from St. Thomas, totaling 38, while 9 are linked to St. Croix. Mr. Petersen highlighted that while some renewals received the green light, a vast number are stuck in limbo due to missing documents from farmers. Primarily, these documents include licenses and formal notices signaling the farmers’ intent to renew, as stipulated in their initial lease terms.

During the session, Senator Angel Bolques Jr. sought clarity on the renewal procedures. Petersen pointed out that certain documents remain pending, leading to uncertainty about whether some farmers are anticipating an auto-renewal.

A unique predicament faced by some farmers is the absence of a proper survey of the land they occupy, which makes it challenging to sign new leases. In a proactive move, Petersen said, “Collaborative efforts with the Governor’s office are underway to garner funds for necessary surveying.” He acknowledged Commissioner Lisa Alejandro and the Department of Property and Procurement for earmarking funds to kickstart these surveys.

To bridge the information gap, Petersen revealed the department’s plans for educational campaigns. These initiatives will guide farmers on correcting deficiencies and streamlining their lease renewal applications.

However, the path to renewal isn’t without its obstacles. Petersen voiced concerns over farmers’ challenges in acquiring liability insurance. The steep cost of insurance premiums, ranging between $1700 to $4000, is a significant deterrent. Petersen assured, “We’re actively engaging with insurance providers to devise feasible solutions for our farming community.”

In some instances, leases went unrenewed due to either a lapse in productivity or non-compliance with agreement terms. Petersen explained that these cases would necessitate meetings to revisit and potentially modify lease terms. After a proposed one-year probationary phase, final decisions on renewals will be cemented.

Touching on the issue of overdue payments, Petersen emphasized that while the department can be lenient for up to a year, there are instances where farmers both neglect their financial obligations and remain unproductive. Such cases, Petersen concluded, are almost certainly bound for non-renewal.

The current state of affairs underscores the importance of a clear and streamlined lease renewal process, especially for the benefit of the territory’s agricultural stakeholders.

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Government

Medicaid Funds Depleted, Major Road Repairs Planned: Bryan Provides Wide-Ranging Update

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Governor Albert Bryan Jr. addressed several critical issues during Monday’s press briefing, focusing on infrastructure, housing, community welfare, and healthcare in the Virgin Islands.

Road Conditions and Repairs

Governor Bryan discussed the impact of recent weather on road conditions, particularly on St. Croix. “The rain, we’re grateful for it but it wreaks havoc on the roads,” he said. The wet weather has also accelerated vegetation growth, complicating roadside maintenance efforts. Additionally, some road projects have been delayed due to ongoing underground utility work. The North Shore Road will undergo significant work to install underground electrical and water services, while Mahogany Road and the main roadways in Frederiksted – Queen and King streets – are slated for extensive resurfacing. “We should be starting within the next 90 days or so to do that,” Bryan estimated.

Housing and Legislation

The governor emphasized the need for affordable housing and the aesthetic improvement of downtown areas, highlighting legislation on abandoned and derelict buildings. “We need to move this along and increase our affordable housing in our downtown spaces,” he stated. Bryan also addressed proposed sentencing reforms to give judges more discretion based on crime severity, saying, “We want to make sure that we have the appropriate amount of punishment for the crimes.”

Additionally, bills regarding gender changes on official documents, procurement requirements, and the combination of workers’ compensation with unemployment insurance are under legislative consideration.

Healthcare Funding and Medicaid

Healthcare funding was a key topic, with Bryan disclosing a recent bill requesting $3 million for Medicaid matching funds. “We ran out of Medicaid match money,” he said, noting the expansion of services during the Covid-19 pandemic led to increased demand and the subsequent depletion of funds. He emphasized the importance of maintaining access to affordable healthcare, highlighting the recent health fair that serviced over 2,400 residents.

Labor Shortage and Immigration

Addressing the territory’s chronic labor shortage, Bryan noted political challenges around immigration and visa waivers. He mentioned efforts to create work visa nexuses with the Dominican Republic and referenced an agreement allowing Trinidadian investors to settle in Miami as a potential model. He expressed confidence in meeting labor demands for upcoming projects under the Rebuild USVI initiative, stating that the four qualified bidders are already preparing to bring in workers.

Governor Bryan’s briefing provided a comprehensive overview of the challenges and initiatives aimed at improving the Virgin Islands’ infrastructure, housing, healthcare, and labor markets.

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Governor Bryan Urges Immediate Ceasefire in Gaza Strip; Proclaims USVI-Palestine Friendship Day

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Governor Albert Bryan Jr. joined a global chorus calling for an immediate ceasefire in the Gaza Strip during Monday’s Government House press briefing.

The governor took this occasion to introduce Siri Hamad, a new public liaison for the Middle Eastern community. Hamad, a former member of the Public Services Commission, has collaborated with nearly every governor over the years, according to Governor Bryan.

Governor Bryan highlighted the significant contributions of the Palestinian community to the Virgin Islands’ development. “We are on the fourth generation of Palestinian descendants,” he said. “They are a critical cog in our business sector and part of the fabric of our community.”

Reflecting on the history of Palestinian entrepreneurs in the Virgin Islands, Bryan reminisced about the iconic traveling salesmen, who were pioneers in extending credit to their customers long before credit cards or bureaus existed. These businessmen were instrumental in shaping the local economy. Today, their descendants are recognized as Virgin Islanders of Palestinian descent, fully integrated into the community.

In a gesture of solidarity, Governor Bryan announced that November 29, recognized globally as the International Day of Solidarity with the Palestinian People, will also be celebrated as Palestinian Virgin Islands Friendship Day in the U.S. Virgin Islands.

Governor Bryan emphasized the universal desire for peace amidst global turmoil, stating, “As individuals, regardless of our skin color, origin, or religions, we should all want peace in this very tumultuous world.”

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USVI’s New Budget Strategy Aims to Address Revenue Shortfalls

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The FY 2025 budget cycle commenced on Thursday as Senator Donna Frett-Gregory convened a hearing of the Senate Committee on Budget, Appropriations and Finance. Officials from the Office of Management and Budget presented an overview of the proposed executive budget for the upcoming fiscal year, themed “Fulfilling the Promise of Fiscal Solvency.” The proposed $1.44 billion budget includes a general fund allocation of nearly $897 million.

“Within the proposed general fund fiscal year 2025 budget of $896,803,010, you will find a continuation of the prudent and conservative approach we have employed since 2019,” stated OMB Director Jenifer O’Neal. This figure represents a $77 million decrease from the current general fund appropriation, resulting from the elimination of several one-time obligations and a reduction in the wage adjustment line item, O’Neal informed lawmakers.

The total budget of $1.44 billion also includes appropriated funds of $97,949,177, federal funds of $416,839,994, and other “non-appropriated funds” totaling $28,970,041.

According to O’Neal, the OMB has adopted a “cautious strategy” to produce a balanced budget that aligns with the estimated revenues for FY2025, aiming to ensure financial stability and resilience amid potential uncertainties. “Our commitment to conservative budgeting reflects our dedication to enhancing financial management and sustainable growth for the territory,” she said.

Despite current revenue shortfalls as of the third quarter of FY2024, the OMB’s projections anticipate growth in several categories. Personal income tax is expected to increase by 9% to $502.3 million, while corporate income is projected to rise by 23%. “With the launching of billion-dollar bid packages and the expected increase in construction activity, we project a significant increase of $19 million,” O’Neal explained.

Gross receipts are also expected to increase by 9% to $214 million, largely due to increased project bundles and construction activity. Excise taxes are projected to rise by 6%, from $42 million to $44.3 million. Notable revenue increases are also projected for hotel taxes.

The digital budget book indicates that the bulk of the FY2025 budget—$728,297,626—will be allocated to the general government. Public housing and welfare will receive $274,372,090, and education expenses are slated to receive $215,026,922. Health and Human Services will be allocated $65,010,796.

In her testimony, O’Neal highlighted several proposals from the FY2025 budget, including additional funds for the territory’s hospitals and the V.I. Waste Management Authority. These increased appropriations will ensure that “vital utilities are adequately budgeted for and can continue to meet the needs of our residents without falling behind again on their utility bills,” she said.

The $5 million budgeted for territory-wide road repairs underscores the commitment to enhancing transportation infrastructure and promoting economic development. An additional $5 million will be allocated to the Budget Stabilization Fund to maintain a prudent fiscal reserve, ensuring stability amid unforeseen challenges. New in the upcoming budget is extra funding for the Department of Sports, Parks, and Recreation for the operation of the recently recommissioned Clinton E. Phipps Racetrack.

Responding to Senator Novelle Francis, O’Neal announced that approximately $400,000 is allocated for the racetrack. “It’s been out of commission for quite a long time and had never been included in Sports and Parks budget,” she explained. The funds will cover utilities and personnel until a promoter takes over the management of the track.

For the Office of Management and Budget, the new budget represents a milestone in their commitment to transparency, accountability, and the prosperity of the territory.

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