ST. CROIX — On Thursday, during the budget wrap up, Senator Carla Joseph blasted OMB Director Julio Rhymer for using $3 million from the Budget Stabilization Fund without authorization from the Senate. However, the law gives Rhymer the ability to move money, which he said was used to address an emergency at both the territory’s landfills.
When Joseph asked whether he was authorized by the Legislature to transfer the funds, Rhymer said he had discussed the matter with senators. Joseph clarified her question, asking whether any legislation had been approved authorizing the transfer.
Rhymer said there was not, acknowledging that he moved the money without the body’s authorization. He also acknowledged that the proper process to transfer the funds would have required approval from the Legislature.
The exchange prompted Joseph to announce a piece of legislation.
“That’s why I have this legislation to get all of you in jail; I mean, prosecuted,” she said. “You’re doing things, and it’s wrong. You’re disrespecting this institution. This is the institution you come to to get the monies appropriated. You don’t do this on your own.”
WTJX contacted Joseph for specifics on her impending legislation. She said it is intended to strengthen fiscal controls by requiring alleged violations of certain Virgin Islands fiscal laws to be referred to the attorney general for investigation and possible prosecution, rather than being reported to the governor through the Office of Management and Budget.
The legislation Joseph referenced, Bill No. 36-0106, was assigned to the Committee on Homeland Security, Justice and Public Safety on February 27, 2025. The measure seeks to amend Section 3109(b) of Title 33 of the Virgin Islands Code, changing where alleged violations of certain fiscal laws by government officers and employees must be reported.
The current law requires the head of an agency to report violations of Sections 3101, 3106(b) or 3108 to the governor through the director of OMB and to the Legislature.
Section 3109(b) currently reads: “In case of a violation of either section 3101, 3106(b) or 3108 of this title by an officer or an employee of any governmental agency, the head of the agency concerned, or his assistant if the agency head is involved, shall immediately report to the governor, through the director of the Office of Management and Budget, and to the Legislature all pertinent facts together with a statement of the action taken thereon.”
At this stage of development, Joseph’s proposed legislation would amend Section 3109(b) by striking “governor, through the director of the Office of Management and Budget” and inserting “attorney general of the Virgin Islands for investigation and prosecution, if warranted.”
When contacted by WTJX, Rhymer indicated that despite his remarks on the Senate floor that he needed legislative consent, he does have authorization to make a transfer from the Budget Stabilization Fund as codified under the VI Code, Title 33, Section 3100m. That section includes paragraph (e), which reads: “The commissioner of Finance shall disburse monies in the fund upon the authorization and direction of the director of the Office of Management and Budget. Any sums disbursed to offset a temporary shortfall must be repaid to fund by the end of the fiscal year. The commissioner of Finance and the director of the Office of Management and Budget shall submit a report of any allocations, expenditures and obligations to the governor and the Legislature within 60 days after disbursement.”
Rhymer told Joseph on the floor that the $3 million would be returned to the Budget Stabilization Fund on Friday, well before the close of the fiscal year on September 30.
