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Budget Revenue Expenditures FISCAL YEAR 2023 ANNUAL REVENUE & EXPENDITURE REPORT Contents An Overview of FY 2023 ................................................................................................................................................................... 3 FY 2023 Financial Revenue ............................................................................... Error! Bookmark not defined. General Fund Revenue (5) Major Categories ................................................................................................ 4 Real Property (2013-2023) ............................................................................................................................ 4 Individual Income (2013-2023) ..................................................................................................................... 4 Corporate Income (2013-2023) ..................................................................................................................... 4 Excise Tax (2013-2023) ................................................................................................................................. 5 Gross Receipts (2013-2023) .......................................................................................................................... 5 Expenditures ..................................................................................................................................................... 6 Salaries ........................................................................................................................................................... 6 Fringe ............................................................................................................................................................. 7 Other Services ................................................................................................................................................ 8 Capital Projects .............................................................................................................................................. 9 FY 2023 Annual Report Office of Management and Budget 3 Budget Revenue Expenditures An Overview of FY 2023 This annual public report on the Territory’s revenues serves two main purposes. First, it supports the continuous monitoring of revenues and expenditure, enabling the government to respond proactively to unexpected changes or emerging financial trends. Second, it reinforces the Government’s commitment to transparency in managing the Territory’s finances. The Office of Management and Budget (OMB) believes that the government has a responsibility to its taxpayers to use public funds efficiently and effectively. This report helps fulfill that responsibility by providing taxpayers with the information they need to hold the government accountable. In FY 2023, the Territory’s economy began to stabilize led by the growth in our tourism industry and business community, and under the prudent fiscal policies established by executive leadership with the adoption of the FY 2023 balanced budget. With balanced budget funding was allocated for funding community services and the development for capital projects focused on increasing sustainability and supporting the Territory’s growing business community with a focus for promoting diversity. The territory experienced a 5% overall decline in total operating income. Within this, total taxes fell by 4%, and other revenues dropped significantly by 21%. The most notable decrease was in corporate taxes, which declined by 23%, while individual income taxes decreased by 6%. On the other hand, there were notable increases in stamp tax (up 70%) and excise tax (up 11%). As of September in fiscal year 2023, total revenues stood at $900 million, compared to $1.074 billion in FY2022, a year-over-year decrease of 16%. The information presented in this report is the most accurately available as of the date of publication. However, this report is not intended to serve as audited financial statements; therefore, the figures provided are preliminary and subject to change. The information presented here is not final. For audited and finalized figures, please refer to the Financial Audit Report issued by the Department of Finance. This annual report focuses exclusively on the performance of the major revenue and expenditure categories within the General Fund. For all other major funds, including fund balances and the legislative authority establishing those funds, please consult the Budget Book available on OMB’s website. Future editions of this report will aim to include analysis of collections beyond the General Fund, along with a comparative review of expenditure on those funds. The major revenue categories examined in this report include real property tax, individual income tax, corporate income tax, excise tax, and gross receipts tax. These revenue streams have historically been the most significant contributors to the General Fund. Revenues outside of operating income are also considered when relevant, particularly transfers to the General Fund, to provide a more comprehensive picture of total collections. FY 2023 Financial Revenue General Fund Revenue Detail Category FY 2023 Legislative Appropriation FY 2023 Preliminary Actuals INCOME TAXES Individual Income $472,432,855 $432,460,794 Corporate Income $116,908,457 $84,307,171 Total Income Taxes $589,341,312 $516,767,965 OTHER TAXES Real Property $61,000,000 $48,091,355 Trade & Excise $40,000,000 $36,626,499 Gross Receipts $230,276,760 $207,609,044 Payment in lieu of Taxes (PILOT from WICO – – Inheritance Tax – – FSC Franchise – – Corporate Franchise $2,000,000 $6,077,815 Stamp Tax $11,182,493 $18,764,164 Total Other Taxes $344,459,253 $317,168,877 OTHER REVENUES Malpractice Insurance $5,356 – Licenses $4,447,048 $4,180,347 Fees & Permits $8,434,689 $8,282,941 Fines, Forfeits & Penalties – $2,697,475 Cannabis Tax $6,000,000 – Concession Fee (Lime Tree Terminal) – $4,639,605 Court Costs, Fees & Charges – $1,169,690 Environment/Infrastuture Impact Fee – $5,303,551 Franchise Fees $769,667 $668,667 U.S. Customs Duties $3,300,000 – All Other $9,450,272 – Miscellaneous Service Charge $1,251,824 $2,091,404 Total Other Revenues $33,658,856 $29,033,680 TOTAL GROSS REVENUE $967,459,421 $862,970,522 Note: Does not include Refunds, Transfers In/Out, Anticipated Projects, or Other Financing Sources. Hotel Room & Non Hotel Room Tax are not included and goes staright to the fund General Fund Revenue (5) Major Categories Real Property (2013-2023) 48,091,355 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 432,460,794 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Individual Income (2013-2023) Individual Income Corporate Income (2013-2023) Excise Tax (2013-2023) 84,307,171 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 36,626,499 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 St. Thomas Corporate Income Gross Receipts (2013-2023) Expenditures Salaries (October 2022- September 2023) 207,609,044 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 1st Quarter $43,996,345 $2,351,246 $1,471,310 $11,362,393 $22,204,433 $975,595 $3,809,637 2nd Quarter $33,326,331 $2,557,987 $1,631,585 $12,124,990 $25,365,587 $1,047,746 $3,862,058 3rd Quarter $39,404,367 $2,903,974 $1,858,145 $15,281,682 $28,140,544 $1,202,502 $4,600,466 4th Quarter $41,921,797 $3,271,456 $1,991,893 $16,867,272 $30,107,700 $1,288,897 $5,468,817 $- $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 Salaries Fringe Benefits (October 2022- September 2023) 44% 3% 2% 15% 29% 1% 5% % Salary Sales FY 2023 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 1st Quarter $11,629,976 $951,965 $645,759 $2,659,240 $9,456,946 $502,833 $1,482,393 2nd Quarter $18,145,865 $1,307,083 $942,867 $4,064,258 $13,078,361 $670,452 $1,990,222 3rd Quarter $16,731,530 $1,352,856 $932,679 $4,508,158 $13,868,501 $658,602 $2,117,652 4th Quarter $17,436,622 $1,541,251 $1,128,437 $4,817,556 $15,208,309 $729,642 $2,521,954 $- $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 Benefits Other Services (October 2022- September 2023) GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 1st Quarter $22,095,948 $2,623,160 $2,339,178 $1,322,905 $3,352,360 $93,552 $25,491,694 2nd Quarter $22,310,314 $3,398,400 $2,776,012 $1,318,223 $6,628,501 $77,312 $7,545,556 3rd Quarer $20,875,707 $4,595,056 $2,405,317 $1,370,992 $4,525,916 $99,558 $(11,063,180) 4th Quarter $59,633,569 $5,657,717 $3,289,569 $1,954,149 $58,026,014 $127,399 $20,204,446 $(20,000,000) $(10,000,000) $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 Other Services 42% 3% 2% 11% 34% 2% 5% % of Fringe for 2023 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE Capital Projects (October 2022- September 2023) 46% 6% 4% 2% 27% 0% 15% % of Other Services for FY 2023 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 1st Quarter $1,469,034 $- $300,675 $111,147 $28,448 $18,800 $84,990 2nd Quarter $935,267 $9,895 $252,571 $- $- $247,704 $- 3rd Quarter $374,703 $- $- $6,850 $5,400 $86,244 $6,120 4th Quarter $1,126,353 $12,492 $274,763 $224,486 $39,056 $137,250 $- $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 Capital Projects Expenditures Conclusion • Compared to FY 22 vs FY 23, Salaries increased by 39%. • Compared to FY 22 vs FY 23, Fringe Benefits increased by 28%. • Compared to FY 22 vs FY 23, Other Projects increased by 11% • Compared to FY 22 vs FY 23, Capital Project decreased by 71% 68% 0% 14% 6% 1% 9% 2% %of Capital Projects for FY 2023 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE