With health insurance costs ballooning and more than a thousand government employees earning less than $35,000 a year, lawmakers on Wednesday pressed Division of Personnel Director Cindy Richardson for clarity on workforce data and cost trends — even as the broader pay raise debate unfolded around her.
The conversation came during the Division’s fiscal year 2026 budget hearing, where Richardson outlined a $63.1 million recommended budget. Of that, $13.5 million comes from the General Fund, and nearly $49.6 million from miscellaneous appropriated funds, most of which cover governmentwide fringe benefits, including health insurance. The agency’s internal operating budget totals a little over $7 million.
The most immediate cost pressure, according to the Personnel team, is health insurance. Richardson told senators that the government’s group health plan grew by $19.4 million between FY 2023 and FY 2024, pushing the total projected cost to $199.3 million for the current year. Of that amount, nearly $166 million is the government’s share of premium contributions.
Sen. Angel Bolques Jr. asked what Personnel could do to rein in those numbers. Richardson explained that while the Division does not oversee the Government Employees Service Commission Health Insurance Board, the board has a five-year, $1.5 million contract with a consultant whose mandate includes identifying cost-saving strategies. “It’s actually part of the contract,” Richardson said, adding that Personnel’s role is limited to promoting wellness initiatives and encouraging participation to improve overall employee health and reduce long-term costs.
The hearing then shifted from rising costs to broader questions about the size and efficiency of the government workforce. The government currently employs 9,024 active workers, with an average salary of roughly $55,000, according to Richardson. In response to a question from Senate President Milton Potter, she said the Division is working to update job descriptions and evaluate whether agencies are structured appropriately for today’s needs, particularly in light of automation and new technologies.
Separately, Sen. Kurt Vialet pressed Richardson on how many employees currently make less than $35,000 — a key focus of legislation he’s introduced to raise the minimum salary for government workers from $27,040 to $35,000 by October 2025. Richardson said that 679 employees earn under $34,000, with another 66 just above that line. But she could not provide a full fiscal impact analysis, citing recent retroactive payments, reactivated personnel files, and ongoing union negotiations. “The data was pulled in mid-May, and a lot has changed since then,” she explained.
Vialet’s bill, passed unanimously by the Senate, has since drawn strong opposition from Gov. Albert Bryan Jr., who released two fiscal impact reports warning the mandate could increase payroll and fringe costs by $40 million annually. His administration projects broader salary compression could force wage adjustments for another 5,200 employees, inflating the government’s debt by up to $200 million over the next five years. In a statement, Bryan called the bill “a feel-good measure” that could derail the territory’s financial progress. He subsequently vetoed the bill, which is expected to be overridden during Friday’s full legislative session.
Vialet, who has cited outdated wages for custodial and front line workers, has floated offsetting the cost by reducing overtime expenditures, government employee vehicle use, and other solutions he said senators could put in place before a final fiscal year 2026 budget is submitted.
Meanwhile, Potter pressed during Wednesday’s hearing to understand whether the current size and structure of the government is still effective. With an evolving landscape shaped by automation and AI, he asked Richardson whether Personnel is assessing whether the existing workforce reflects modern operational needs. Richardson said there has been opportunity for that kind of deep review, after the pandemic in particular, where advancements in technology or changes in job functions could have been assessed.
Speaking about her ongoing work to update what she described as antiquated job descriptions, Richardson also pointed to the Bureau of Information Technology’s upcoming rollout of Microsoft Copilot, which will help agencies explore automation and identify redundant positions.
Personnel is also developing internal dashboards to help agencies visualize workforce trends, including retirements, vacancies, and hiring bottlenecks — tools Richardson said could help shift the government toward smarter workforce planning. “These are the conversations we need to have,” she told senators.
St. Croix Source
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