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Senate budget committee hears strained finance report: $66 million in payables, $40 million line-of-credit drawn
Summary
The governor's financial team told the Legislature's Budget, Appropriations and Finance Committee that the Central Government had $38.9 million cash on hand, $66.1 million in accounts payable and had drawn $40 million of a $50 million line of credit as of early February.
The Senate Committee on Budget, Appropriations and Finance was told Feb. 18 that the territory’s central government faces tight liquidity even as officials said federal reimbursements and recovery spending are active.
“Through 02/06/2025, the Central Government of the Virgin Islands paid a total of $485,300,000 in vendor payments and allotments,” Commissioner Kevin McCurdy of the Department of Finance told the committee. He said the government had $38,900,000 in cash available as of Feb. 7 and $66,100,000 in accounts payable.
McCurdy and other members of the governor’s financial team walked senators through a fund-by-fund breakdown: General Fund allotments, special funds and federal funds, and they described how a $50 million line of credit established in November 2024 had been used. “To date, $40,000,000 has been drawn down. And of that amount, $11 has been returned,” McCurdy said; the remaining drawn balance was forecast to be repaid by May 2025.
The team emphasized that some large sums reported as fund balances are not cash available for discretionary use. Ebony Serrano, director of accounting in the Department of Finance, warned senators not to treat the Tourism Revolving Fund’s stated balance as spendable cash, explaining that a pool-cash approach moves money across funds for operations and must be reconciled at year-end.
Officials said federal drawdowns and recovery dollars are substantial. McCurdy and Adrian Williams Octalin of the Office of Disaster Recovery described hundreds of millions in federal obligations and ongoing reimbursements tied to recovery projects; ODR has used a separate $100 million recovery line and reported large federal reimbursements that have already reduced that draw.
Senators pressed the financial team on prioritization for payments, and McCurdy said hospitals and other critical operations are prioritized. Asked to summarize the government’s financial condition in a single word, McCurdy said, “It can be stable. I would say stable. Optimistically stable.” Several senators pushed back, calling the situation “precarious” and urging austerity and stronger vendor-relationship practices.
Coming changes and next steps: the team promised to supply senators with vendor lists by payment status, a clearer breakdown of the accounts-payable items that are allotments versus vendor invoices, and updated forecasts showing likely cash inflows through April and May. The committee said it will follow up as the budget season continues.
