[Congressional Record Volume 145, Number 131 (Friday, October 1, 1999)]
[Extensions of Remarks]
[Page E2004]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          GRANTING THE VIRGIN ISLANDS GREATER FISCAL AUTONOMY

                                 ______
                                 

                               speech of

                             HON. DON YOUNG

                               of alaska

                    in the house of representatives

                       Monday, September 27, 1999

  Mr. YOUNG of Alaska. Mr. Speaker, I submit for the benefit of the 
Members a copy of the cost estimate prepared by the Congressional 
Budget Office for H.R. 2841, an act to amend the Revised Organic Act of 
the Virgin Islands to provide for greater fiscal autonomy consistent 
with other United States jurisdictions.

                                      Congressional Budget Office,


                                                U.S. Congress,

                               Washington, DC, September 28, 1999.
      Hon. Don Young,
     Chairman, Committee on Resources,
     Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for H.R. 2841, an act to 
     amend the Revised Organic Act of the Virgin Islands to 
     provide for greater fiscal autonomy consistent with other 
     United States jurisdictions, and for other purposes.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is John R. 
     Righter, who can be reached at 226-2860.
           Sincerely,

                                               Dan L. Crippen,

                                                         Director.


               Congressional Budget Office Cost Estimate


                           September 28, 1999

       H.R. 2841--An act to amend the Revised Organic Act of the 
     Virgin Islands to provide for greater fiscal autonomy 
     consistent with other United States jurisdictions, and for 
     other purposes--as passed by the House on September 27, 1999
       H.R. 2841 would provide the government of the Virgin 
     Islands, a territory of the United States, more flexibility 
     in issuing general obligation debt (that is, debt that the 
     Virgin Islands secures by pledging its full faith and 
     credit). Specifically, the legislation would allow the Virgin 
     Islands to issue general obligation debt for any public 
     purpose authorized by its legislature. It also would remove 
     certain types of debt from the territory's limit on aggregate 
     debt and would allow its government to pay bondholders on a 
     monthly or quarterly basis. The Joint Committee on Taxation 
     estimates that enacting H.R. 2841 would decrease governmental 
     receipts by about $2 million over the 2000-2004 period, with 
     the amount of forgone receipts totaling less than $500,000 
     for each year. The estimates loss of receipts would occur as 
     a result of the government of the Virgin Islands increasing 
     its amount of tax-exempt debt. Because the legislation would 
     affect governmental receipts, pay-as-you-go procedures would 
     apply.
       In addition, the legislation would authorize the Secretary 
     of the Interior to enter into an agreement with the Governor 
     of the Virgin Islands to establish financial controls and 
     performance standards for the territory. Subject to the 
     availability of appropriated funds, CBO estimates that 
     providing the technical assistance would not significantly 
     increase costs at the Department of the Interior.
       H.R. 2841 contains no intergovernmental or private-sector 
     mandates as defined in the Unfunded Mandates Reform Act and 
     would impose no costs on state, local, or tribal governments. 
     The legislation would provide significant benefits to the 
     government of the Virgin Islands.
       The CBO staff contact is John R. Righter, who can be 
     reached at 226-2860. This estimate was approved by Peter H. 
     Fontaine, Deputy Assistant Director for Budget Analysis.

     

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