The University of the Virgin Islands and the V.I. Research and Technology Park, based on the UVI campus, discussed their budgets and operations with the Senate Budget, Appropriations and Finance Committee Thursday.
First, UVI President David C. Hall, serving his last year as president, presented a synopsis of the operations, including new courses added during his tenure. Since he began in 2009, 15 new minor degrees, seven associate degrees, 16 new bachelor degrees and eight new master’s degrees were created, as well as the first doctorate program.
Even with a seven percent increase in tuition in 2023-24 and a million dollars cut from the 2023 fiscal year budget, the school is challenged by a budget deficit and the need to provide pay increases to staff, the president said.
Hall said pay raises for all UVI employees are his first priority. Since the V.I. government recently raised salaries, it is more difficult to compete with the government for and retain teachers.
“As you may be aware, Gov. Bryan, in his FY 2024 budget submitted to the Senate, included $18 million so that all government employees receive a three percent raise, yet we were informed that the university was not included in the pool. Thus our only hope is that this body will appropriate $1.3 million to our FY 2024 budget,” Hall said.
UVI’s second major challenge is a deficit caused largely by the 2017 hurricanes and the COVID-19 pandemic. There was a drop in enrollment, major increases in property insurance ($1.2 million) and health insurance ($120,000) and an increase of three percent or $170,000 in the annual contribution to the Government Employees’ Retirement System.
Hall and his staff testified that property insurance increased from $800,000 to $2 million after the storms.
Budgets for government agencies are submitted by the governor and Gov. Albert Bryan Jr. requested an allocation of $36,751,293 for the University of the Virgin Islands. This included $27,805,458 for general operations and $2,808,059 for debt service. Program funding requests included $989,912 for agricultural and aquaculture programs, $615,502 for the master’s program in social work, $400,000 for the bachelor’s degree in nursing program, and $484,146 for the construction manager program. Between $100,000 and $250,000 was allocated for several other programs.
Hall requested an additional $2,790,000 over the governor’s request and said otherwise they would have to look at cutting services.
“Tuition and enrollment won’t cover the deficit,” he said.
Senators had a number of questions for Hall, led by committee chair, Sen. Donna Frett-Gregory, who wanted to know the status of the certification for the medical school.
All three buildings of the medical complex have been completed, Hall said, but the Liason Committee on Medical Education said UVI needs to demonstrate more funding. Although an exact number is not known, an estimated reserve of $10-20 million will be required, he said, based on other recent medical school certifications.
“It’s going to require a significant contribution from the private sector,” Hall said. “I still remain confident, although we’re not where we need to be.”
Frett-Gregory said Hall “is not alone on this” but has the support of the Senate. Since the $38 million to build the center was expended, the rest needs to be raised to make the medical school a reality.
“So even if we have to pool resources, we have to make it happen,” she said.
Hall was also asked about the status of a proposed sports complex to be built on the St. Croix campus. Seven applications have been submitted to the V.I. Housing Finance Authority and UVI is about to submit the eighth application. The complex/disaster shelter has not even reached the design phase, he added.
Sen. President Novelle Francis Jr. commented there is new staff at VIHFA that may be helpful.
“We need to have a conversation with the HFA because CBDG is holding up a lot of projects,” Frett-Gregory said.
Hall also told the committee that the Reichhold Center for the Arts on St. Thomas, which was badly damaged in the 2017 hurricanes, had not been repaired because the Federal Emergency Management Agency has not agreed that the building should be condemned and replaced. UVI replaced the roof for $2.9 million to protect the interior theater. They hope to be refunded if they convince FEMA to rebuild the building.
The RTPark does not receive an annual allocation from the V.I. Legislature and did not request funds this year. The Park, an independent, self-sustaining economic development corporation, was created by the Senate in 2002 with a $17 million allocation. Peter Chapman, chief executive officer, and members of his staff were required to present the financial status and afterward answered questions.
Chapman talked about the work of the organization to attract new companies to the territory, support emerging enterprises, provide access to capital, facilitate workforce development and create new real estate facilities. The CEO said most income comes from fees from companies receiving tax benefits.
This year, Chapman said projected revenue is $10 million and they expect to generate $2.7 million for UVI. In the last five years, more than $12 million has been generated for the university, he added.
“The results-driven performance of our lean and stellar team of professionals also helped the RTPark earn the distinction of being designated a best-in-class economic development organization (EDO) by the International Economic Development Council, the leading economic development trace and policy institution in North America,” Chapman said.
In the last five years, the Park has eliminated $4 million — all of its debt. Total expenses for FY 2023 are projected at $6,337,777,67. The UVI contribution accounts for 42 percent of expenses and other services equal 17 percent. Almost 35 percent covers personnel and professional services and fringe benefits.
Frett-Gregory requested a breakdown of the expenses be sent to the committee, citing a variance over the last few years.
Sens. Donna A. Frett-Gregory, Novelle E. Francis Jr., Marvin A. Blyden, Samuel Carrión, Dwayne M. DeGraff, Ray Fonseca, and Javan E. James Sr., and Carla J. Joseph were in attendance at Thursday’s hearing.
