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September 27, 1999
The Administration is concerned about the financial well-being of the
Government of the Virgin Islands. The Administration could support H.R.
2841, which would expand the authority of the Virgin Islands to issue bonds
for additional purposes, if the territory agrees to enact an acceptable
balanced budget/debt reduction plan.
The Administration is currently engaged in negotiating an acceptable agreement with the Government of the Virgin Islands on a fiscal plan of action and the Administration hopes to reach agreement very shortly. We recognize the substantial debt outstanding of the Government of the Virgin Islands, as well as its inability to pay all of its current expenses. However, the Administration believes that any new or expanded financing opportunities, as suggested in H.R. 2841, would only be meaningful if accompanied by fiscal measures that address the continuing deficit in this territory.
Pay-As-You Go Scoring
H.R.2841 would affect receipts, therefore, it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990. OMB's preliminary estimate of this bill is that Federal receipts will decrease by $2.5 million over five years. Final scoring of this legislation may deviate from this estimate.