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Committee approves $4 million from Insurance Guarantee Fund for WAPA streetlight repairs

December 15, 2025 | 2025 Legislature, Virgin Islands


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Committee approves $4 million from Insurance Guarantee Fund for WAPA streetlight repairs
The Committee on Budget, Appropriations and Finance voted to favorably pass bill 36‑0210 on Dec. 15, authorizing a one‑time appropriation of $4,000,000 from the Insurance Guarantee Fund to the Virgin Islands Water and Power Authority (WAPA) to repair, replace and operate street lights across the territory.

WAPA Chief Executive Officer Carl Knight said the territory has 17,767 streetlights (10,169 on Saint Croix, 6,814 on Saint Thomas and 595 on Saint John) and noted 437 fixtures require full replacement. He testified the authority is paid approximately $2.44 million annually via the statutory 4% property‑tax set‑aside, but that the authority faces an annual gap and has roughly $8.3 million in past‑due streetlight charges. "The proposed $4,000,000 allocation will enable the utility to advance a focused high‑impact maintenance initiative, including the replacement of the 437 lamps that were damaged by the storms and other obsolete fixtures with LED conversions," Knight said.

Julia Reimer, senior director at the Office of Management and Budget, opposed using the Insurance Guarantee Fund for this purpose. She said the fund's purpose is to ensure financial stability to pay obligations when insurers become insolvent and that the balance should be preserved for catastrophic events. Reimer recommended a sustainable funding mechanism — such as restoring a dedicated surcharge or increasing the property‑tax set‑aside — rather than a one‑time draw on the guarantee fund.

Senators debated the short‑term benefit of immediate streetlight repairs against longer‑term fiscal options. Several members said the appropriation reflects a compromise: use excess funds above the statutory $50 million floor (OMB and the sponsor noted the fund's balance exceeds that threshold) to address public‑safety concerns now and pursue a sustainable funding plan going forward.

The committee approved the appropriation and will forward the bill to Rules & Judiciary for further consideration.

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