Mr. Speaker, H.R. 2107 fulfills my commitment to my constituents to continue the effort to create a Chief Financial Officer for the Territory. This is the third time that this legislation has been on the floor of the House. However, the…
Mr. Speaker, H.R. 2107 fulfills my commitment to my constituents to continue the effort to create a Chief Financial Officer for the Territory. This is the third time that this legislation has been on the floor of the House. However, the other body failed to act on it in the previous two Congresses.
When I first introduced the idea of a CFO for the Virgin Islands in 2005, I did so in response to the concerns, complaints and distrust of government voiced by my constituents and as a measure to prevent the territory, which was experiencing a serious financial crisis, from falling into the abyss of fiscal insolvency. I believed then, as I do now, that having such an office in our government, free of political pressures and with the statutory responsibility and authority to certify revenue projections and prevent deficit spending, could assist our government to establish sound financial practices which would put the Islands on the path to improved financial management going forward. Because of our long history of poor financial management and practices, an office such as this would also help to immediately restore the confidence of the Federal Government and others in our ability to be fiscally transparent and accountable.
As I have said on this floor and in many other settings, in drafting H.R. 2017 I looked at the example and record of what having such a position has meant to the financial management and fiscal health of the District of Columbia.
After having decades of fiscal mismanagement and protracted deficits, the District today enjoys annual balanced budgets and surpluses under the stewardship of a Chief Financial Officer; an office that was voluntarily retained by the city after the mandated office went away with the end of their Financial Control Board. Both the general public and elected
leadership of the District recognize the benefits of having an impartial arbiter, free from the pressures of politics, managing their finances--something I strongly believe my community can benefit from as well.
When I first introduced this bill the territory's long-term debt totaled $1 billion. Fiscal crises have been narrowly averted through repeated borrowing. Such borrowing and debt creation has led to the $3 billion debt reported by Governor De Jongh in April of this year--a practice he has already stated he will not continue.
There are those, Mr. Speaker, who will ask why I am doing this at this time, particularly because the islands just 7 months ago, inaugurated a new governor whose background is in financial management and who has been a good friend and political ally. I want to be perfectly clear that I have every confidence in Governor John de Jongh and his administration and believe that they will do a first rate job of managing the territory's finances. He has already begun to do so.
I am re-introducing this bill because my constituents continue to see it as a necessary measure, and because, like the CFO in Washington, DC, it can assist our governor in his stated goal of paying our obligations and bringing the territory's finances into balance. It would also be a way to provide apolitical and indisputable information on the financial state of our government, as well as bridge any divisions between the administration and the legislature in the interests of expediting a positive and sustainable agenda for the people of the Virgin Islands.
As also happens up here, there is often disagreement between the Governor (and his financial team) and the Legislature as to the precise fiscal condition of the territory and the true revenue projections for the coming fiscal year. A CFO, in my view, would take the uncertainty out of this equation and allow our legislature and governor to work better together because they would both get their numbers from the same independent source. Additionally, the departments of government, semi- autonomous agencies and labor unions would be better able to plan, and the people of the Virgin Islands in general would have information on how the millions of federal dollars coming to the Virgin Islands are being spent.
The bill as being passed today contains certain changes. I have revised it with respect to providing a financial management system because such a system is already in the process of being implemented.
In recognition of and in deference to the upcoming constitution to be drafted by the people of the Virgin Islands, the bill before us calls for the term of the Chief Financial Officer to expire at the implementation of a ratified Virgin Islands Constitution or in 5 years, whichever comes first.
All four previous Constitutional documents have contained a provision similar to what is proposed in this legislation, and it is my hope that our Fifth Constitutional Convention will present a document for the ratification of the people of the Virgin Islands that will make this legislation unnecessary.
In conclusion Mr. Speaker, I want to thank my friend and colleague, the Chairman of the Resources Committee, the gentleman from West Virginia, Nick Rahall, without whose support this bill would not be on the floor today. I also want to thank my friend Ranking Member Don Young for his support as well.
Mr. Speaker, it has been said that ``heavy is the burden that one who is called to lead bears''. Pursuing enactment of this bill has not been an easy burden to bear but is an important one, which I am proud to bear. I urge my colleagues to support passage of H.R. 2107.