USVI Public Records

Document text

FISCAL YEAR 2022 3rd QUARTER REVENUE & EXPENDITURE REPORT OFFICE OF MANAGEMENT & BUDGET U.S. VIRGIN ISLANDS 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 1 UNITED STATES VIRGIN ISLANDS FISCAL YEAR 2022 3rd QUARTER REVENUE & EXPENDITURE REPORT July 28, 2022 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 2 Table of Contents Real Property ..................................................................................................................................................................4 Individual Income ...........................................................................................................................................................5 Corporate Income ...........................................................................................................................................................6 Trade and Excise .............................................................................................................................................................7 Gross Receipts .................................................................................................................................................................8 Expenditures ...................................................................................................................................................................9 Salaries ............................................................................................................................................................................9 Fringe Benefits ..............................................................................................................................................................10 Other Services ...............................................................................................................................................................11 Capital Projects .............................................................................................................................................................12 ....................................................................................................................................... Error! Bookmark not defined. Summary .......................................................................................................................................................................13 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 3 Content and Purpose This quarterly report contains an overview of the Territory’s actual collection of General Fund revenues and expenditures for the third quarter of FY 2022, as compared to FY 2021. This report will highlight any notable trends. The purpose of this quarterly public report on the Territory’s revenues is twofold. Firstly, it ensures that the Territory is consistently monitoring its revenues and expenditures to allow for proactive responses to unanticipated changes or emerging trends. Secondly, these reports lend credibility to the Government’s efforts at increasing transparency of the Territory’s finances. It is the Office of Management and Budget’s (OMB) belief that the government is accountable to its taxpayers to use revenues collected in an efficient and effective manner. These reports provide taxpayers with the information they need to hold the government to this standard. In comparison to FY2021, the pace of collections for third quarter FY2022 are at a slight incline. The Territory has seen an increase in collections for all major revenue categories; except for Real Property Tax and Gross Receipts Tax. This second quarter report will focus entirely on the performance of the major revenue and expenditure categories for the General Fund. For all other major funds, a listing of the fund balance and legislative authority establishing those funds can be found in the Budget Book published on OMB’s website. Subsequent iteration of the report will endeavor to include analysis of collections beyond the General Fund and a comparable exploration of the Territory’s expenditures from said funds. Timeframe and Limitations The information provided in this report are the most accurate available as of the date of composition. Furthermore, the report does not purport to be audited financial statements and as such, the numbers are preliminary and subject to change. The information provided here are not final. For final numbers, please refer to the Financial Audit Report from the Department of Finance. Summary of major revenue categories of General Fund The major revenue categories explored here are Real Property, Individual Income, Corporate Income, Excise Tax and Gross Receipts. These revenue streams have historically been the most significant contributors to the General Fund. Revenues outside operating income is considered to the extent they provide a complete picture of the Territory’s General Fund collections; specifically, the transfers to the General Fund. 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 4 REAL PROPERTY Compared to FY 2021, Real Property Tax collections in third quarter FY 2022 decreased 71%. Collections are down in both districts; STT/STJ saw a decrease of 69% and STX saw a decrease of 74 % when compared to FY 2021. 5,260,148 1,645,479 3,429,902 882,098 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 FY 2021 FY 2022 Real Property St. Thomas/St. John St. Croix 5,260,148 3,429,902 1,645,479 882,098 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 St. Thomas/St. John St. Croix Real Property FY 2021 FY 2022 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 5 INDIVIDUAL INCOME Overall, Individual Income collections increased by 23% in third quarter FY 2022 compared to third quarter FY 2021. Both the STT/STJ and STX districts increased in collection compared to FY 2021. STT/STJ increased by 24% and STX increased by 19%. 131,187,851 163,120,952 47,552,971 56,575,279 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 FY 2021 FY 2022 Individual Income St. Thomas/St. John St. Croix 131,187,851 47,552,971 163,120,952 56,575,279 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 St. Thomas/St. John St. Croix Individual Income FY 2021 FY 2022 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 6 CORPORATE INCOME The third quarter FY 2022 performance for Corporate Income has increased by 72% compared to FY 2021. The STT/STJ District saw a 88% increase and the STX district saw a 39% increase in third quarter collections in FY 2022 compared to third quarter FY 2021. 23,535,174 44,224,742 11,435,914 15,937,819 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 FY 2021 FY 2022 Corporate Income St. Thomas/St. John St. Croix 23,535,174 11,435,914 44,224,742 15,937,819 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 St. Thomas/St. John St. Croix Corporate Income FY 2021 FY 2022 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 7 TRADE AND EXCISE Overall, the Territory saw a 10% increase in the third quarter of FY 2022 compared to FY 2021. STT/STJ District saw collections increase by 20% and STX District a decrease of 35% compared to FY 2021. 7,217,197 8,657,246 1,587,014 1,023,757 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 FY 2021 FY 2022 Excise Tax St. Thomas/St. John St. Croix 7,217,197 1,587,014 8,657,246 1,023,757 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 St. Thomas/St. John St. Croix Excise Tax FY 2021 FY 2022 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 8 GROSS RECEIPTS FY 2022 third quarter collections for Gross Receipts Tax (GRT) decreased by 10% as compared to FY 2021. The STT/STJ district collections decreased by 4% and STX decreased by 23%. 48,014,954 45,926,779 21,170,065 16,375,516 - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 FY 2021 FY 2022 Gross Receipts St. Thomas/St.John St. Croix 48,014,954 21,170,065 45,926,779 16,375,516 - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 St. Thomas/St.John St. Croix Gross Receipts FY 2021 FY 2022 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 9 EXPENDITURES As with previous iterations of this report, the expenditures presented in this report reflect amounts appropriated for General Fund. This report examines the Lapsing portion of the General Fund. In subsequent reports, efforts will be made to include the Non-Lapsing element of the General Fund. The expenditures are analyzed by budget category based on the applicable function of government. While inferences can be made regarding the trajectory of expenditures based on the data presented, expenditures are cyclical and therefore fluctuate. Also, while salaries are a bit more predictable and therefore more suitable to determine effects, caution is still advised given the preliminary nature of the data. SALARIES Actual salaries across all functions of government increased by 17.80% for the third quarter FY 2022 as compared to third quarter FY 2021. The most significant increase of 89.90% occurred in Public Safety. The most significant decrease of 52.24% occurred in Health & Human Services. GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION 2021 40,904,367 9,880,597 2,029,157 10,037,052 30,294,500 1,775,447 2022 48,209,880 4,718,914 2,409,392 19,060,445 35,841,440 1,579,378 - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 Salaries 2021 2022 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION 1st Quarter 67,472,001 3,095,930 1,460,121 10,814,090 20,672,459 913,699 2nd Quarter 47,070,261 4,745,235 2,441,965 17,866,217 32,716,117 1,503,865 3rd Quarer 30,880,847 3,055,548 3,245,749 1,843,373 3,689,318 80,440 - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 Salaries 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 10 FRINGE BENEFITS Fringe Benefits increased by 8.57% in the third quarter FY 2022 compared to third quarter FY 2021. The most notable increases were in Public Safety at 34.58%, General Government at 18.30%, and Transport & Facilities at 14.45%. The most significant decrease occurred in Health & Human Services, at 54.19%. GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION 2021 17,129,758 4,489,374 1,102,954 4,349,866 16,307,151 1,005,629 2022 20,265,354 2,056,720 1,262,282 5,854,234 17,849,348 898,999 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Fringe 2021 2022 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION 1st Quarter 13,512,019 1,138,813 648,343 2,603,294 9,622,693 471,755 2nd Quarter 19,240,610 2,038,755 1,153,385 5,169,385 16,401,218 861,519 3rd Quarter 20,265,354 2,056,720 1,262,282 5,854,234 17,849,348 898,999 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Fringe Benefits 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 11 OTHER SERVICES Other Services saw an overall decrease of 20.15% in the third quarter FY 2022 compared to the same quarter in FY 2021. There was a notable increase in Education at 67.66%. There was a notable decrease in Health & Human Services at 75.07%. GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION 2021 32,145,452 12,254,204 3,235,901 3,597,855 2,200,445 158,886 2022 30,880,847 3,055,548 3,245,749 1,843,373 3,689,318 80,440 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 Other Services 2021 2022 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION 1st Quarter 25,090,479 1,928,977 2,449,686 942,528 2,603,829 107,135 2nd Quarter 32,837,620 2,617,511 2,422,978 1,771,664 3,557,368 212,374 3rd Quarer 30,880,847 3,055,548 3,245,749 1,843,373 3,689,318 80,440 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 Other Services 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 12 CAPITAL PROJECTS Capital projects increased 82.60% in the third quarter FY 2022 as compared to FY 2021. The most notable increase was seen in Transportation & Facilities at 100%. The most substantial decrease occurred with Education at 100%. GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION 2021 374,056 31,954 - 153,991 213,925 - 2022 828,889 63,960 122,526 301,888 - 95,940 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 Capital Projects 2021 2022 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION 1st Quarter 332,776 - 62,623 213,357 - 14,806 2nd Quarter 993,809 31,980 35,880 422,744 - 352,456 3rd Quarter 828,889 63,960 122,526 301,888 - 95,940 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Capital Projects 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2022 13 SUMMARY In summary, the Territory saw an overall increase of 8% in Total Operating Income. Specifically, Total Taxes increased by 9% while Total Other Revenues increased by 3%. Overall, this represented a 13% increase in Total Revenue collections for third quarter FY 2022 when compared to FY 2021. The most notable decrease was seen in Real Property Tax at 7%. By contrast the most notable increases are Excise Tax at 129%, and Corporate Income at 77%. The Total Revenues as of June for FY 2022 was $776.8 million compared to $688.3 million for FY2021. From a cash flow perspective, at the end of the third quarter FY 2022, specifically the week ended July 1, 2022, the Territory had a negative cash flow of $48 million and a positive cash balance of $104 million with 42 days cash on hand.