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THE UNITED STATES VIRGIN ISLANDS OFFICE OF THE GOVERNOR GOVERNMENT HOUSE 5047 Kongens Gade Charlotte Amalie, V.I. 00802 340-774-0001 May 30, 2025 The Honorable Milton Potter Senate President Thirty-Sixth Legislature of the Virgin Islands Capitol Building St. Thomas, VI 00802 RE: Proposed Executive Budget for Fiscal Year 2026 for the Government of the Virgin Islands Dear Senate President Potter: I am pleased to transmit to the Thirty-Sixth Legislature the proposed Executive Budget for Fiscal Year 2026 for the Government of the Virgin Islands. This year’s budget is submitted under the guiding theme “Empowering Progress: Revitalization, Sustainability, and Financial Stability.” As the final budget of the Bryan-Roach Administration, it reflects our enduring commitment to responsible governance, prudent fiscal management, and a forward-looking vision for the Virgin Islands. Throughout our tenure, we have prioritized budgets rooted in accurate revenue forecasting, targeted investments to improve government efficiency, and consistent efforts to reduce the long- standing debts of the Territory. The proposed General Fund budget for FY 2026 totals $936,426,140, representing a modest increase from FY 2025’s appropriation of $933,336,038. This increase is strategic, focused on strengthening the capacity of our core agencies, enhancing accountability and compliance, and addressing essential services such as road repairs and public transportation. We present this budget in the context of an evolving national and global landscape. The economic and political uncertainties within the federal government create both challenges and opportunities for our Territory. Accordingly, we have adopted a conservative fiscal approach for FY 2026. Despite these headwinds, we anticipate continued revenue growth in five of our major tax categories: Personal Income Tax, Gross Receipts Tax, Excise Tax, and Property Tax. We expect a slight decline in Corporate Tax revenue, attributed to the unpredictability of U.S. economic policy, particularly as it relates to tariffs. Our robust revenue outlook is driven by ongoing recovery and mitigation construction projects, coupled with sustained growth in our tourism sector. These developments continue to stimulate job creation, consumer spending, and overall economic vitality. Over the past seven years, the Bryan-Roach Administration has achieved significant milestones: improving public infrastructure, modernizing government operations through technology, and delivering long-overdue wage increases for public servants. As we enter the next chapter of growth, construction, and social advancement, we do so with a clear blueprint and the contingencies in place to ensure long-term stability and resilience. We remain committed to working collaboratively with the Legislature to ensure the continued progress of our Territory and the well-being of its people. Sincerely, Albert Bryan Jr. Governor