Opinion: Confusion Reigns as VI Government Officials Give Conflicting Financial Reports

You are not alone if you are confused about the VI Government’s fiscal condition. Every official statement about it contradicts one before. According to one official, GVI has been operating regularly with 2 to 5 days cash on hand – widely considered crisis level -- but according to another, there is no cause for concern. One official says revenues are up, another says they are down. Finance Commissioner says cashflow is his biggest challenge, Governor says government finances are strong and steady; then admits to a cash crisis. Senators seem just as perplexed. GVI has had cashflow problems for donkey years. That is why negotiated wage increases were not honored, tax refunds were not refunded, and trash haulers and other vendors were not paid on time. That is also why its credit rating has been downgraded to “junk” status, and its access to credit restricted. Available evidence – direct and circumstantial — place the GVI’s current cash position somewhere between critical and crisis. Re...