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FISCAL YEAR 2025 3RD QUARTER REVENUE & EXPENDITURE REPORT 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 1 Table of Contents Content and Purpose ........................................................................................................................................................2 Timeframe and Limitations .............................................................................................................................................2 Summary of major revenue categories of General Fund .................................................................................................2 Real Property ...................................................................................................................................................................3 Individual Income ............................................................................................................................................................3 Corporate Income ............................................................................................................................................................4 Trade and Excise .............................................................................................................................................................4 Gross Receipts .................................................................................................................................................................5 Expenditures ....................................................................................................................................................................6 Salaries ............................................................................................................................................................................6 Fringe Benefits ................................................................................................................................................................7 Other Services .................................................................................................................................................................7 Capital Projects ................................................................................................................................................................8 Summary .........................................................................................................................................................................8 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 2 CONTENT AND PURPOSE This quarterly report provides an overview of the Territory’s actual General Fund revenue collections and expenditures for the third quarter of Fiscal Year (FY) 2025, compared to the third quarter of FY 2024. The report highlights notable trends in major revenue streams and expenditure categories and is intended to support informed fiscal oversight and decision‑making. The purpose of this report is twofold. First, it enables continuous monitoring of the Territory’s fiscal performance, allowing for proactive responses to emerging trends or unanticipated changes. Second, it supports the Government’s commitment to transparency and accountability. The Office of Management and Budget (OMB) believe that clear and accessible financial reporting is essential to maintaining public trust and ensuring responsible stewardship of public resources. TIMEFRAME AND LIMITATIONS The data presented in this report reflects the most accurate information available as of the date of preparation. The figures are unaudited and preliminary and are subject to revision. This report does not replace the official Financial Audit Report issued by the Department of Finance, which should be consulted for finalized figures. SUMMARY OF MAJOR REVENUE CATEGORIES OF GENERAL FUND This report analyzes the Territory’s principal General Fund revenue sources: Real Property Tax, Individual Income Tax, Corporate Income Tax, Trade and Excise Tax, and Gross Receipts Tax. These categories historically represent the most significant contributors to the General Fund and provide a comprehensive view of operating revenue performance. Overall, third‑quarter FY 2025 revenue performance reflects mixed trends across categories, with notable growth in several major revenue streams offset by declines in others. 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 3 REAL PROPERTY Real Property Tax collections increased by 15 percent during the third quarter of FY 2025 compared to the same period in FY 2024. Collections in the St. Thomas/St. John district increased by 19 percent, while St. Croix experienced a 6 percent increase. This category was the strongest and most consistent performer among General Fund revenues during the quarter. INDIVIDUAL INCOME Individual Income Tax collections increased 23 percent overall in the third quarter of FY 2025 compared to FY 2024. The St. Thomas/St. John district recorded a significant 41 percent increase, while collections in St. Croix declined by 17 percent. The overall increase was driven primarily by growth in the St. Thomas/St. John district. 8,817,448 10,486,298 3,822,106 4,066,591 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 FY 2024 FY 2025 Real Property St. Thomas/St. John St. Croix 102,416,901 144,903,912 49,545,653 41,349,930 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 FY 2024 FY 2025 Individual Income St. Thomas/St. John St. Croix 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 4 CORPORATE INCOME Corporate Income Tax collections increased by 10 percent in the third quarter of FY 2025 relative to FY 2024. The St. Thomas/St. John district experienced a 9 percent increase, while St. Croix recorded an 11 percent increase. These gains indicate moderate but broad‑based improvement in corporate revenue collections. TRADE AND EXCISE Trade and Excise Tax collections declined by 5 percent in the third quarter of FY 2025 compared to FY 2024. Collections in St. Thomas/St. John decreased by 2 percent, while St. Croix experienced a larger decrease of 20 percent. This category represents the most significant revenue contraction among the major revenue streams during the quarter. 8,113,210 7,923,118 1,218,351 970,504 - 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 FY 2024 FY 2025 Excise Tax St. Thomas/St. John St. Croix 17,498,129 19,039,920 11,924,700 13,200,334 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 FY 2024 FY 2025 Corporate Income St. Thomas/St. John St. Croix 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 5 GROSS RECEIPTS Gross Receipts Tax collections increased 4 percent overall in the third quarter of FY 2025 when compared to FY 2024. Collections in St. Thomas/St. John increased by 1 percent, while St. Croix experienced a stronger increase of 14 percent. The results reflect steady performance with notable district‑level variation. 45,030,336 45,500,085 11,803,940 13,484,545 - 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 2024 FY 2025 Gross Receipts St. Thomas/St.John St. Croix 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 6 EXPENDITURES Expenditures analyzed in this report reflect appropriated General Fund expenditures within the lapsing category and are organized by major functional areas of government. Expenditure trends should be interpreted with caution, as certain categories, particularly capital expenditure, can fluctuate significantly across quarters. Additionally, while salary costs tend to follow more predictable patterns, the preliminary nature of the data warrants careful interpretation. SALARIES Total salary expenditures across all functions of government decreased by 6.8 percent in the third quarter of FY 2025 compared to FY 2024. Notable decreases occurred in Public Safety (18.2 percent), while Transportation and Facilities experienced a modest increase of 5.3 percent. The overall decline reflects reductions in several major functional areas. GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 2024 38,494,789 3,014,107 1,787,684 14,548,496 27,827,702 1,241,125 5,088,384 2025 36,322,054 3,083,132 1,882,534 11,896,925 26,983,222 1,144,596 4,409,025 - 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 Salaries 2024 2025 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 7 FRINGE BENEFITS Fringe benefit expenditure increased by 1.2 percent in the third quarter of FY 2025 compared to the same quarter in FY 2024. Public Safety expenditures declined by 10.7 percent, while General Government fringe benefits increased by 7.1 percent, contributing to the overall growth in this category. OTHER SERVICES Expenditures for Other Services increased 14.6 percent during the third quarter of FY 2025 compared to FY 2024. A substantial increase occurred within the Public Housing and Welfare category, which experienced a 194 percent increase. This growth reflects a significant concentration of spending in this functional area. GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 2024 16,249,050 1,417,058 880,888 4,426,356 14,177,301 710,923 2,308,572 2025 17,399,721 1,419,617 940,718 4,142,927 14,017,343 680,199 2,061,542 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 Fringe 2024 2025 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 2024 42,664,289 4,420,323 2,484,576 2,408,755 5,774,744 79,671 8,254,048 2025 39,051,760 3,824,820 1,933,150 1,319,509 5,181,839 111,314 24,304,190 - 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 Other Services 2024 2025 3rd QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 8 CAPITAL PROJECTS Capital Project expenditures declined overall in the third quarter of FY 2025 relative to FY 2024. Reductions were observed across multiple functional areas, including Culture and Recreation, where expenditure was significantly lower due to limited capital activity during the quarter. SUMMARY Through the third quarter of FY 2025 (year‑to‑date through June), Total General Fund revenues increased by approximately 19 percent compared to the same period in FY 2024. Year‑to‑date revenues increased from approximately $640 million in FY 2024 to $764 million in FY 2025. Growth was driven by increases in Individual Income Tax, Corporate Income Tax, Gross Receipts Tax, and Real Property Tax, while declines were observed in Trade and Excise Tax. Overall, third-quarter results indicate improving revenue performance with continued variability across districts and revenue categories. Expenditure patterns reflect both strategic reductions and targeted increases aligned with programmatic priorities. GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 2024 353,969 52,784 820,467 - - 170,902 - 2025 271,226 - 419,929 - - 8,013 6,500 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 Capital Projects 2024 2025