BRYAN SUBMITS $250M BOND PACKAGE TO TACKLE HOSPITAL AND UTILITY DEBTS

Governor Albert Bryan Jr. has put forward a $250 million bond proposal aimed at relieving financial strain across several government agencies, with the largest share directed toward the territory's two main hospitals.

The governor sent the proposal to Senate President Milton Potter on Friday. The 36th Legislature must approve it before any financing can move forward. Of the total, $85 million would flow to hospitals: $45 million to Schneider Regional Medical Center on St. Thomas and $40 million to Governor Juan F. Luis Hospital and Medical Center on St. Croix.

The plan allocates $40 million to the V.I. Water and Power Authority to address costs tied to maintaining electricity and water systems, meeting existing debts and improving service reliability. A further $40 million would support the V.I. Waste Management Authority. Combined, these three entities would receive $165 million.

The remaining funds address other pressing needs. The proposal sets aside $30 million to settle a FirstBank line of credit and $10 million for unpaid vendor invoices. An additional $30 million is earmarked for income tax refunds and retroactive wages, though the governor's letter does not break down how this sum would be split between the two categories or when recipients would receive payment. The final $15 million would be divided equally: $5 million each for legislative capital projects, judicial capital projects and the Virgin Islands Economic Development Authority.

The V.I. Public Finance Authority would issue the bonds, with repayment guaranteed by gross receipts tax revenue. Borrowing would carry a maximum term of 25 years, with interest rates capped at 8 percent for tax-exempt bonds and 10 percent for taxable bonds.

Bryan described the initiative as a response to longstanding financial pressures facing core institutions. "These are obligations and financial pressures that already exist, and continuing to carry them without a comprehensive solution has a cost of its own," he said. "Our goal isn't just to meet the immediate financial need. It's to make an investment today that puts these institutions in a stronger position tomorrow, with the resources and accountability they need to serve our people effectively."

Recipient agencies would face strict accountability measures. Each must develop a five-year financial sustainability plan, a workforce strategy and concrete targets for reducing dependence on government funding. Within 24 months, all overdue audits must be completed. The institutions would also publish financial statements and quarterly reports, with annual compliance certifications submitted to the Office of Management and Budget, the Public Finance Authority and the Legislature.

Failure to comply could result in independent oversight, disqualification from future assistance, mandatory restructuring or loss of discretionary subsidies. Such penalties would not, however, affect the validity or security of the bonds themselves.

The proposal emerged from a Financial Solutions Task Force established by the governor in July. Members included OMB Director Julio Rhymer, Senators Novelle E. Francis Jr., Marvin Blyden and Avery Lewis, Finance Commissioner Kevin McCurdy, PFA Executive Director Nathan Simmonds and Personnel Director Cindy Richardson.