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OldTart
(@the-oldtart)
Expert

http://stthomassource.com/content/news/local-news/2016/08/16/government-will-borrow-110-million-fill-deficit

Governor deJongh addressed the continued fiscal problems and their escalation but his measures and cautions were struck down, and here we go again.

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Topic starter Posted : August 16, 2016 11:17 am
ms411
(@ms411)
Expert

Who is crazy enough to lend the money????

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Posted : August 16, 2016 11:47 am
Alana33
(@alana33)
Expert

Mapp is governor.

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Posted : August 16, 2016 11:52 am
watruw8ing4
(@watruw8ing4)
Trusted Member

Paying off your credit cards with another credit card never works out well. Bonds are a good thing, but not to continuously finance debt from planned budget shortfalls.

The fall is going to be painful. The sooner the Feds come in the better.

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Posted : August 16, 2016 12:12 pm
CruzanIron
(@cruzaniron)
Trusted Member

Mapp is governor.

OT is saying that DeJong warned us this could happen, and no one believed him, and the Legislature ignored what he wanted to do to keep this from happening.

And Yes, Mapp is governor and is still doing nothing to directly address the problem.

Nor is the Legislature.

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Posted : August 16, 2016 12:14 pm
Gator's Mom
(@gators_mom)
Trusted Member

OMG love the Centennial Commission "leader" who upped the budget request by $1.4 million - and didn't have a budget.

Reality soon come.

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Posted : August 16, 2016 1:49 pm
ms411
(@ms411)
Expert

OMG love the Centennial Commission "leader" who upped the budget request by $1.4 million - and didn't have a budget.

Reality soon come.

Priceless! And she used to be Tourism Commissioner. I have asked her several times to put an activity on the centennial schedule and never heard from her.

If she gets funding, the senators who vote yes should not be re-elected, imo.

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Posted : August 16, 2016 2:43 pm
STTsailor
(@STTsailor)
Trusted Member

i hope the Feds will take over soon just like in PR.
The VI lottery budget is quite interesting.

<>

They pay out only 35% in prizes while salaries are 25% with other 15% ($3M) unaccounted for. I think mainland state lotto pays out 60-70%.

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Posted : August 16, 2016 3:14 pm
Gator's Mom
(@gators_mom)
Trusted Member

i hope the Feds will take over soon just like in PR.
The VI lottery budget is quite interesting.

<>

They pay out only 35% in prizes while salaries are 25% with other 15% ($3M) unaccounted for. I think mainland state lotto pays out 60-70%.

Why that $3M is for "contracts," too, I suppose. Just like the Centennial Commission. Contracts with brothers, sisters, cousins, spouses ..... for unknown work on unknown projects.

Problem is everyone who "counts" benefits from these activities.

Keep your fingers crossed the bond default comes soon.

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Posted : August 16, 2016 3:34 pm
tedc
 tedc
(@tedc)
Advanced Member

Why does a lottery even have a budget - shouldn't it be self supporting - or just be gone??

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Posted : August 16, 2016 3:43 pm
OldTart
(@the-oldtart)
Expert

Why does a lottery even have a budget - shouldn't it be self supporting - or just be gone??

All businesses and all government agencies have budgets ... that's worldwide basic business practice so not sure what you mean.

Maybe STTSailor only cited a brief and incomplete reckoning - a good proportion of the lottery profits go to education.

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Topic starter Posted : August 16, 2016 4:07 pm
Gator's Mom
(@gators_mom)
Trusted Member
Scubadoo
(@Scubadoo)
Trusted Member

Why does a lottery even have a budget - shouldn't it be self supporting - or just be gone??

All businesses and all government agencies have budgets ... that's worldwide basic business practice so not sure what you mean.

I took this as a budget funded by tax dollars.

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Posted : August 17, 2016 12:39 am
vicanuck
(@vicanuck)
Expert

Only in the VI can a lottery not make a profit.

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Posted : August 17, 2016 11:08 am
OldTart
(@the-oldtart)
Expert

Only in the VI can a lottery not make a profit.

It does make a profit but not what it should. Appendix II, page 15, clearly notes that the inefficiencies/deficiencies noted in previous audits have NOT been addressed and corrected, simply repeated which of course is totally unacceptable.

As far as the disbursement of profits which was questioned earlier, these are clearly delineated in Appendix III.

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Topic starter Posted : August 17, 2016 11:47 am
OldTart
(@the-oldtart)
Expert

http://viconsortium.com/business/understanding-root-of-prs-debt-crisis-could-help-usvi-avert-the-same-milling-young-says/

"Excessive spending" cited as the root of PR's fiscal crisis - hopefully the legislature will pay attention as I rather doubt we can expect the governor to embrace it.

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Topic starter Posted : August 18, 2016 10:30 am
STTsailor
(@STTsailor)
Trusted Member

There are towns in PR where nearly everybody is on disability or workers comp. Also, 30% of population reports NO INCOME.

PR population are the masters of exploiting state and federal social safety net. Furthermore, the PR gov was financing infrastructure without any oversite of the contracts. Lots of projects went over budget, and/or run out of funding before completion.

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Posted : August 18, 2016 7:47 pm
ms411
(@ms411)
Expert

There are towns in PR where nearly everybody is on disability or workers comp. Also, 30% of population reports NO INCOME.

PR population are the masters of exploiting state and federal social safety net. Furthermore, the PR gov was financing infrastructure without any oversite of the contracts. Lots of projects went over budget, and/or run out of funding before completion.

And the VI is different how?????

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Posted : August 18, 2016 9:14 pm
Scubadoo
(@Scubadoo)
Trusted Member

And the VI is different how?????

Smaller budget?

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Posted : August 19, 2016 12:01 am
STTsailor
(@STTsailor)
Trusted Member

VI is probably not much different but it's harder to find any reference to substantiate the claim. While PR got small amount of attention in the press, VI like other US outlying islands are hardly noticeable.

Perhaps VI is just a social experiment run by some mad scientists or Holywood production set of AA version of Truman Show. It does feel that way sometimes.

Anyway, wiping off $5B of Vi debt is just a chump change for the Feds. If HRC wins next election she may just do it without strings attached.

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Posted : August 19, 2016 4:45 am
OldTart
(@the-oldtart)
Expert

VI is probably not much different but it's harder to find any reference to substantiate the claim. While PR got small amount of attention in the press, VI like other US outlying islands are hardly noticeable.

It's only harder if you rely on "in your face" headlines and sound bites for your information intake. Facts, figures and solid analyses are so easily found (particularly these days). It couldn't be more untrue to say that the fiscal crisis in PR "got small amount of attention in the press". It was/is national and international news if you could/can get beyond Page 3.

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Topic starter Posted : August 19, 2016 11:06 am
Gator's Mom
(@gators_mom)
Trusted Member

The debt the VI owes is to Wall Street investors, not the Feds. Feds cannot wipe out this debt.

PROMESA has sent in a oversight team to do a reorganization of how PR government operates - and the result will be new sources of cash otherwise spent on wasteful enterprise.

REALLY tough love, not bankruptcy.

http://www.nbcnews.com/news/latino/here-s-how-promesa-aims-tackle-puerto-rico-s-debt-n601741

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Posted : August 19, 2016 11:42 am
CruzanIron
(@cruzaniron)
Trusted Member

And because the VI FOUGHT not to be covered by PROMESA if we choose to use it, the VI bond ratings dropped. Now we can't restructure debts to a lower rate and have to borrow at a higher rate than before PROMESA.

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Posted : August 19, 2016 12:34 pm
Gator's Mom
(@gators_mom)
Trusted Member

And because the VI FOUGHT not to be covered by PROMESA if we choose to use it, the VI bond ratings dropped. Now we can't restructure debts to a lower rate and have to borrow at a higher rate than before PROMESA.

If the VI defaults on a bond payment, it will be forced into a plan similar to PROMESA by the Feds.

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Posted : August 19, 2016 12:43 pm
CruzanIron
(@cruzaniron)
Trusted Member

And because the VI FOUGHT not to be covered by PROMESA if we choose to use it, the VI bond ratings dropped. Now we can't restructure debts to a lower rate and have to borrow at a higher rate than before PROMESA.

If the VI defaults on a bond payment, it will be forced into a plan similar to PROMESA by the Feds.

YEP. But if the investors had the confidence in us, knowing a plan was already in place, we would not have suffered the bond downgrade.

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Posted : August 19, 2016 12:46 pm
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