Senators on Monday moved the territory’s Fiscal Year 2026 budget package one step closer to final approval, reporting favorably on more than 30 appropriations bills that together total more than $1 billion – inclusive of federal and local funds – in spending.
At the center of the package is the government’s main operating budget — Bill No. 36-0174 — which appropriates just over $725 million from the General Fund, or $752 million including non-lapsing funds. Companion bills cover a wide range of areas, from the Judiciary, Legislature, and UVI to hospitals, Waste Management, and capital projects. Several measures also redirect money from special funds, such as the Insurance Guaranty and Tourism Advertising funds, into the General Fund to balance operations.
Monday, Senate President Milton Potter called the budget “perhaps the most important thing that we, as legislators, are asked to do,” adding that the decisions made determine whether schools, health care, infrastructure, and public servants are adequately supported. Vice President Kenneth Gittens likewise thanked the Budget, Appropriations, and Finance Committee — chaired by Sen. Novelle Francis — and the Legislature’s Post Audit Division for producing what he called a balanced plan.
Francis said more than 20 budget hearings were held over the summer, with senators scrutinizing agency staffing, finances, and service delivery. He noted that this year’s bills include targeted increases for hospitals — including $1.5 million each for the Charlotte Kimelman Cancer Institute and JFL’s cardiac catheterization lab. Money is also directed toward senior services, streetlights, and road work.
One of the biggest questions heading into markup was how to sustain the $35,000 minimum salary for government employees — a measure enacted earlier this year over Gov. Albert Bryan Jr.’s veto. Francis last week explained that the Legislature, working with the Office of Management and Budget and the Division of Personnel, identified the funds needed to be $4.6 million, which was sustained by redirecting a portion of what’s been budgeted for the more than 800 vacant positions across government.
Health insurance was another pressure point. Lawmakers said they set aside $20.5 million to address rising premiums, following testimony that group health insurance costs jumped nearly 10 percent between FY 2024 and FY 2025 and are expected to increase again in FY 2026.
The Source previously reported on the budget bills when they cleared the Finance Committee last week, noting that senators used fund transfers and conservative revenue projections to shore up appropriations. On Thursday, Francis emphasized that transparency was built into the process, pointing to documents available through the Legislature, Finance, and the Bureau of Internal Revenue.
“The budget is a projection that balances revenues and expenditures,” Francis said. “It is very important that we are able to collect our revenues so that we can make the expenditures required to deliver services to this community.”
The FY 2026 budget bills now move to the full Senate for final consideration.
St. Croix Source
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