, 1956-02-24
GOVERNOR GORDON ADDRESSES
STAFF ON FISCAL MATTERS
Concluded from yesterday

lCCHSl1ISu III yesterday
AS a result of the Special Session of the Legislature, the
Department of Finance, Insular Affairs, Public Works, Trade
& Tourism, and the Police Courts had additional amounts
appropriated, which they thought necessary for the efficient
operation of their departments for the balance of the Fiscal
Year. Another large item was the retroactive pay which is
due our employees and must be obligated. The funds to cover
the pay raise had been included in the original amounts made
available by the Secretary of the Interior, but no reserve
had been set up in the various Departments to cover the cost
thereof at the time the payments were temporarily suspended.
The retroactive pay appropriated by the Legislature at the
Special Session amounted to $4O9551. In addition to this
amount, appropriations were made at the Special Session Of
the Legislature in the amount of $702, 1853. With our previous
alotnents, this brought the grand total. estimated to be re-
quired for the operation of the Government to $~5,537,000. This
is approximately 81 ,135,000 in excess of our approved amounts.
After securing these figures, my first action was to determine
how much money we lad available in the Treasury of the
Virgin Islands. The estimates | now have show that we antci
pate receiving approximately a grand total of $5,013,0OO this
year.
Approximately $2,676,000 of this amount will come from
local revenues; $4,000 will come from the Lottery Fund, as
approved at the Special Session Of the legislature; and $2,309-
600 will be received from Matching Funds. Realizing our
pending requirements and the amount of money which would
be available to us, and realizing the seriousness of the situa-
ton, / Immediately communicated with the Department Of
the Interior and explained to them our dilemma. | advised
the Department Of the Interior that we were exceeding last
years expenditures. Further, that it was urgently necessary
to release the Reserve Fund and also to approve the release
of additional funds. The Department of the Interior, realiz-
ing our situation, tentatively approved the release of the Re
serve of $266y371 and has also provided the use Of an addi-
ttional amount Of $345,00O thereby tentatively approving for
the Fiscal Year a total of $5,O13,OOO which is the total amount
of all of our receipts. The Secretary Of the Interior cannot
legally approve more than this amount. 1t should be clear to
you that this total is slightly over $1000,0O0 more than was
approved for the same operations during the last Fiscal Year
The Secretary of the Interior S deeply concerned and de-
lsirous cf furnishing all available funds for our Government
tai operations. He did not wish to curtail any of our essen
tial operations-always, Of course, within the limitation of
the cash available. I therefore, feel happy to call your atten-
ton to the fact that we have received the Secretary1s ap
Eproval for an additional expenditure Of slightly more than
100000 above that which was previously approved. However,
we still have some severe problems facing us, and I have
found a few such problems that are easy in their solution.
AS stated in the previous figures, there have been allotments
already issued totaling $4,279,356. The total of the retroactive
CONTINUED on mage 81 8