Gov. Albert Bryan Jr. has submitted the final executive budget of his administration, proposing a roughly $1.63 billion Fiscal Year 2027 spending plan built around investments in housing, infrastructure, recreation, and long-term economic growth.
The proposal, submitted Friday to the 36th Legislature, includes a $958.2 million General Fund budget and comes under the theme, “Investing Today for the Communities of Tomorrow: Infrastructure, Recreation and Housing.” While the General Fund represents the locally funded core of government operations, the broader $1.63 billion budget includes additional governmental funds and revenue sources supporting agencies and programs across the territory.
The proposed budget supports 6,570 full-time government positions and directs the largest share of spending toward general government functions, which account for approximately $979.8 million. Education remains one of the largest spending categories at $229.1 million, while Public Housing and Welfare would receive $200.2 million. Together, those two areas account for more than $429 million in proposed spending. Public safety is budgeted at $84.6 million, Health and Human Services at $71.3 million, transportation and facilities at $63.6 million, and culture and recreation at $9.9 million.
At the center of the administration’s proposal is an expectation that government revenues will continue to grow. The budget projects General Fund revenues of $958.2 million in FY2027, compared with a revised FY2026 estimate of approximately $848.8 million. Total gross revenues are projected to reach nearly $1.04 billion, up from about $930.8 million in the current fiscal year.
Several major revenue categories are expected to increase. Gross receipts tax collections are projected to rise from approximately $230.4 million this year to nearly $245 million in FY2027. Real property tax revenues are forecast to increase from $55 million to $56.2 million, while trade and excise taxes are expected to grow from $37.7 million to $43 million. Hotel and non-room taxes, a key tourism-related revenue source, are projected to increase from $64.4 million to $68.6 million.
Income taxes continue to represent the government’s largest revenue source. Individual income tax collections are projected at approximately $428 million, while corporate income taxes are forecast at $72.4 million. Combined income tax revenues are expected to total roughly $465.4 million in FY2027.
The budget also anticipates a substantial increase in revenues associated with ongoing mitigation and recovery activities. Those revenues, which include withholding taxes, gross receipts taxes, excise taxes, and related contributions tied to recovery and mitigation work, are projected at approximately $111.5 million in FY2027, compared with about $33.2 million in the revised FY2026 estimate.
In a statement accompanying the budget submission, Bryan said the proposal reflects both the progress made during his administration and the territory’s continued economic momentum.
“As we submit the final Executive Budget of the Bryan-Roach Administration, we do so with confidence in the progress we have made and with a clear vision for the work still ahead,” Bryan said. “This budget extends a legacy of responsible fiscal management, accurate revenue forecasting, smarter government operations and the continued reduction of longstanding government debt. It is a financial plan rooted in discipline, but it is also a roadmap for people, progress and sustainability.”
Bryan also pointed to continued growth in tourism, housing development, private investment, and recovery-related construction as factors supporting the administration’s revenue projections.
“In plain language, the Virgin Islands economy is growing,” the governor said. “Our tourism product is expanding, private investment is increasing, recovery work is moving forward and our budget reflects a territory preparing for the future instead of merely reacting to the present.”
The administration is also proposing a $5 million contribution to the Budget Stabilization Fund, often referred to as the territory’s Rainy-Day Fund, while budgeting approximately $60.9 million for debt service payments. At the same time, some revenue sources are projected to decline. Transfers from the Insurance Guaranty Fund, for example, are expected to fall from $20 million in FY2026 to $10 million in FY2027, while total transfers into the General Fund are projected at $23.5 million, down from $33.6 million in the current fiscal year.
The proposal now moves to the Legislature, where senators will spend the coming months reviewing agency budgets, revenue assumptions, staffing levels, and spending priorities during annual budget hearings. Lawmakers may amend, reduce, or add items before adopting a final budget ahead of the start of the new fiscal year on Oct. 1.
