HR63hMAR18

TheWeekInCongress.com

Week Ending March 18, 2005

HR 63 to create the Office of Chief Financial Officer of the Government of the Virgin Islands, and for other purposes.

BRIEF

As of the introduction of this bill in the 108^th Congress in 2004 the US Virgin Islands was $1 billion in debt, a circumstance that took 15 years to happen and is mostly the result of public and private costs of rebuilding after six major hurricanes and a decline in tourism revenue. Adding to the debt is a substantial government workforce and many services that are delivered more easily on the mainland are replicated on the Islands at greater expense.

The bill is aimed at better managing the USVI finances by installing a Chief Financial Officer. Several USVI elected officials oppose the appointment because it would take financial management away from elected officials and put it in the hands of one who is not elected. The CFO would be selected from three candidates chosen by the CFO Search Commission established in the bill. The new CFO would be selected and appointed by the USVI Governor who also opposes the bill.

Sponsor: Representative / Delegate Donna M. Christensen (D-VI-Delegate)

Vote: Passed House by voice vote (Mar. 15, 2005)

Cost to the taxpayers: In 2004 CBO estimated that implementing the legislation would cost a total of $5 million in 2005 and 2006 to install a financial management system for the Virgin Islands.