What the Stimulus Package means for the US Virgin Islands

[Lorine R. Williams]

As President Barack Obama signed the $787.2 billion dollar
economic stimulus package into law, a large sigh of relief
echoed throughout the Virgin Islands. The islands will realize
at least $244 million in unanticipated revenue, with windfalls for the
Territory’s roads, schools, Medicaid patients and providers, and tax
credits for its citizens. Although some numbers are solid, there are
areas that remain in flux:

•Clean, Efficient, American Energy
•Transforming our Economy with Science and Technology
•Modernizing Roads, Bridges, Transit and Waterways
•Education for the 21st Century
•Tax Cuts to Make Work Pay and Create Jobs
•Lowering Healthcare Costs
•Helping Workers Hurt by the Economy
•Saving Public Sector Jobs and Protect Vital Services

Virgin Islands Governor John P. deJongh Jr. has offered a broad
outline of the package for the Territory. The bill includes a tax cut
of $400 per person and $800 per couple. Because the Territory’s
tax laws reflect federal tax laws, any reduction in federal tax rates
means a reduction in tax rates for Virgin Island residents and less
money for the V.I. government.

The stimulus package contains a provision that will preserve $50 million
in tax revenues for the V.I. government to offset the loss in revenue
from the federal tax credits, according to deJongh.
Stimulus money for education in the Virgin Islands will be in
the area of $22 million. There also will be as much as $20 million
made available in new, unanticipated funding for roads and transportation
projects. Additionally, there is $33 million earmarked for
energy funding, $2 million for workforce training, $4 million for
interior and environmental protection, $4.8 million for health and
human services and $9.8 milliom for Housing and Urban Development.
A portion of the stimulus funds will be made available to the
Virgin Islands through competitive grants.

To provide transparency to how the stimulus money is being
spent, the Obama Administration has established a website:
www.recovery.gov to allow people to track expenditures. A summary
of the package can be viewed at http://appropriations.house.
gov/pdf/PressSummary01-21-09.pdf

Virgin Islands Investments


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