In a recent meeting of the Committee on Budget, Appropriations, and Finance, the Legislature of the U.S. Virgin Islands (USVI) discussed critical fiscal matters impacting the territory's financial management and infrastructure development. The meeting, held on June 10, 2025, highlighted the authority's ongoing efforts to enhance financial coordination and transparency, particularly in the wake of disaster recovery initiatives.

The authority, governed by a seven-member board chaired by the governor, is tasked with raising capital for essential public projects and managing various financial programs. Currently, the board includes two private citizens, with two positions remaining vacant. The Office of Disaster Recovery (ODR) was emphasized as a key component in improving financial management across agencies receiving disaster recovery funds. The ODR aims to ensure compliance with federal regulations and enhance accountability through improved reporting.

A significant topic of discussion was the proposed fiscal year 2026 budget, which totals $26.11 million—a 21% decrease from the previous year. This reduction is primarily attributed to cuts in consultancy services and budgeted salaries within the ODR. The budget will fund essential operations, including payroll, IT systems, and maintenance, with funding sources including gross receipts taxes and federal reimbursements.

The authority's bond management was also a focal point, with discussions surrounding the issuance of bonds for infrastructure projects. Notably, the authority approved the creation of the Virgin Islands Transportation and Infrastructure Corporation to issue bonds aimed at addressing vital infrastructure needs. Recent bond issuances, including $150.15 million in grant anticipation revenue bonds, are intended to finance various projects, including road improvements and inter-island ferry services.

Additionally, the meeting addressed the territory's bonded debt obligations, with the current outstanding general obligation debt reported at approximately $453.1 million. The authority's capacity to issue new bonds remains significant, with an estimated $1.1 billion in debt ceiling capacity available.

The discussions underscored the importance of strategic financial planning and management in the USVI, particularly as the territory navigates recovery from recent disasters and seeks to enhance its infrastructure. As the authority continues to implement its budget and manage its financial obligations, the outcomes of these initiatives will be closely monitored by both the government and the community. The next steps will involve finalizing the budget and addressing the vacant positions on the board, which are crucial for effective governance and oversight.