The Committee on Budget, Appropriations, and Finance of the U.S. Virgin Islands Legislature convened on June 10, 2025, to address critical financial matters impacting the territory. A significant focus of the meeting was the ongoing efforts to remove the Virgin Islands government from the European Union's blacklist, which identifies jurisdictions deemed non-cooperative in tax matters. The Public Finance Authority confirmed that while it is not blacklisted, it is actively collaborating with legal teams in Washington and Germany to facilitate the government's removal from this list.

In addition to the blacklist issue, the committee discussed the status of various bond issues, specifically the Tax Increment Financing (TIF) bonds issued in 2019. Officials clarified that the debt service reserves for these bonds are separate from those associated with the recently closed Garvey bonds, ensuring clarity in financial management.

The meeting also highlighted advancements in the implementation of a new time and attendance system across several government agencies. Currently, five agencies, including the Department of Finance and the Casino Commission, are operational with the system, and plans are in place to extend its use to the Virgin Islands Police Department, particularly to help manage overtime costs effectively.

Another pressing topic was the indirect cost drawdowns from the federal government. The Office of Management and Budget (OMB) is working to finalize the indirect cost rate, which currently stands at 10% but aims to increase to 15%. However, the committee noted a lack of clarity regarding the current balance of these drawdowns, emphasizing the need for timely financial reporting from government agencies to ensure accurate reconciliations.

The meeting underscored the ongoing challenges faced by the Department of Finance, particularly regarding delayed reporting from various government entities, which hampers their ability to perform essential financial functions. The committee expressed a need for stronger accountability measures to ensure compliance with reporting requirements.

As the committee continues to navigate these financial complexities, the outcomes of these discussions are expected to have significant implications for the territory's fiscal health and governance. The commitment to resolving these issues reflects a proactive approach to enhancing financial transparency and accountability within the U.S. Virgin Islands government.