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FISCAL YEAR 2025 1ST QUARTER REVENUE & EXPENDITURE REPORT 1ST QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 1 TABLE OF CONTENTS Executive Summary .......................................................................................................................... 2 Real Property .................................................................................................................................... 3 Individual Income ............................................................................................................................. 3 Corporate Income .............................................................................................................................. 4 Trade and Excise ............................................................................................................................... 4 Gross Receipts .................................................................................................................................. 5 Expenditures ..................................................................................................................................... 5 Salaries .............................................................................................................................................. 6 Fringe Benefits .................................................................................................................................. 6 Other Services ................................................................................................................................... 7 Capital Projects ................................................................................................................................. 7 Summary ........................................................................................................................................... 8 1ST QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 2 EXECUTIVE SUMMARY This First Quarter Fiscal Year (FY) 2025 Revenue and Expenditure Report provide an overview of the Territory’s actual General Fund revenue collections and expenditures for the first quarter of FY 2025, as compared to the same period in FY 2024. The analysis highlights key trends in major revenue streams and expenditure categories and is intended to support ongoing fiscal monitoring and transparency efforts of the Government. Overall, General Fund revenue performance in the first quarter of FY 2025 reflects mixed results across major revenue categories. While certain revenue sources experienced growth, most major tax categories recorded declines when compared to the first quarter of FY 2024. Gross Receipts Tax collections increased by 10 percent, driven by gains in both districts, with particularly strong growth in St. Croix. Trade and Excise Tax collections declined modestly by 7 percent overall, reflecting divergent district-level performance. In contrast, Individual Income Tax, Corporate Income Tax, and Real Property Tax collections decreased year-over-year, with Real Property Tax experiencing the most significant decline during the quarter. Despite declines across several major revenue categories, Total Other Revenues increased substantially, contributing to an overall increase in total revenue collections when compared to the same fiscal-year-to-date period in the prior year. These results underscore the importance of continued monitoring of revenue trends as collections evolve over the remainder of the fiscal year. On the expenditure side, General Fund spending during the first quarter of FY 2025 reflects the cyclical nature of government expenditures. Total salary expenditures declined modestly compared to the first quarter of FY 2024, with notable reductions in General Government and Public Safety. Fringe benefit costs remained relatively stable, decreasing slightly overall, while expenditures for Education increased modestly. Spending for Other Services increased during the quarter, driven largely by higher expenditures in Public Housing and Welfare. Capital outlays declined significantly, particularly within Education and General Government, reflecting the timing of capital project activity. It is important to note that the data presented in this report are preliminary and unaudited and reflect the most accurate information available at the time of preparation. Final audited figures will be published by the Department of Finance in the annual Financial Audit Report. Nevertheless, this quarterly report serves as a critical tool for enhancing fiscal transparency, supporting informed decision-making, and ensuring accountability in the management of public resources. 1ST QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 3 REAL PROPERTY Compared to the first quarter of FY 2024, Real Property Tax collections in the first quarter of FY 2025 decreased significantly by approximately 75 percent. Declines were recorded in both districts during the period. Collections in the St. Thomas/St. John district decreased by approximately 80 percent, while collections in the St. Croix district decreased by approximately 28 percent. These declines reflect timing and compliance factors affecting collections during the first quarter of the fiscal year INDIVIDUAL INCOME Overall, Individual Income Tax collections decreased by approximately 31 percent in the first quarter of FY 2025 when compared to the first quarter of FY 2024. The St. Thomas/St. John district experienced a decline of approximately 33 percent, while collections in the St. Croix district declined by approximately 22 percent. The year-over-year decrease reflects lower withholding and non-withholding receipts during the quarter. 13,629,375 2,730,354 1,501,644 1,086,848 - 5,000,000 10,000,000 15,000,000 FY 2024 FY 2025 Real Property St. Thomas/St. John St. Croix 109,560,360 73,577,155 27,042,732 21,126,684 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 FY 2024 FY 2025 Individual Income St. Thomas/St. John St. Croix 1ST QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 4 CORPORATE INCOME Corporate Income Tax collections in the first quarter of FY 2025 decreased by approximately 31 percent compared to the same period in FY 2024. The St. Thomas/St. John district recorded a decrease of approximately 46 percent, while the St. Croix district experienced an increase of approximately 70 percent. Despite the increase in St. Croix, the decline in St. Thomas/St. John resulted in an overall reduction in Corporate Income Tax collections for the quarter. TRADE AND EXCISE Trade and Excise Tax collections decreased by approximately 7 percent in the first quarter of FY 2025 compared to the first quarter of FY 2024. Collections in the St. Thomas/St. John district decreased by approximately 10 percent, while the St. Croix district experienced an increase of approximately 24 percent. District-level variations offset one another, resulting in a modest net decline overall. 11,905,452 6,438,636 1,810,341 3,086,556 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 FY 2024 FY 2025 Corporate Income St. Thomas/St. John St. Croix 8,879,430 7,981,957 1,007,909 1,250,234 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 FY 2024 FY 2025 Excise Tax St. Thomas/St. John St. Croix 1ST QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 5 GROSS RECEIPTS Gross Receipts Tax (GRT) collections in the first quarter of FY 2025 increased by approximately 10 percent compared to the first quarter of FY 2024. The St. Thomas/St. John district recorded an increase of approximately 4 percent, while collections in the St. Croix district increased by approximately 28 percent. Continued positive performance in Gross Receipts Tax collections is anticipated in the near term, reflecting ongoing economic activity. EXPENDITURES As with previous iterations of this report, expenditures presented reflect amounts appropriated for the Lapsing portion of the General Fund. Expenditures are analyzed by budget category in accordance with the applicable function of government. While trends can be observed based on the data presented, expenditures are cyclical in nature and therefore subject to fluctuation. Caution is advised when interpreting trends due to the preliminary and unaudited status of the data. 34,916,523 36,440,442 10,151,066 12,973,115 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 FY 2024 FY 2025 Gross Receipts St. Thomas/St.John St. Croix 1ST QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 6 SALARIES Actual salary expenditures across all functions of government decreased by approximately 7.3 percent in the first quarter of FY 2025 compared to the first quarter of FY 2024. Notable decreases occurred in General Government (7.6 percent) and Public Safety (21 percent). Salary expenditures in other functional areas remained relatively stable during the quarter. FRINGE BENEFITS Fringe benefit expenditures decreased by approximately 1 percent in the first quarter of FY 2025 compared to the same period in FY 2024. All functional categories experienced slight decreases with the exception of Education, which recorded an increase of approximately 3.3 percent. Overall fringe benefit spending remained relatively stable during the quarter. GENERAL GOVERNMEN T HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 2024 32,381,731 2,439,119 1,426,373 12,463,931 21,955,559 952,701 4,005,613 2025 29,901,236 2,436,401 1,386,752 9,853,108 21,890,671 916,924 3,935,216 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 Salaries 2024 2025 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 2024 10,909,894 1,054,625 620,606 2,717,739 9,653,894 471,739 1,584,793 2025 10,647,047 898,814 595,717 2,549,599 9,970,763 467,218 1,706,782 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Fringe 2024 2025 1ST QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 7 OTHER SERVICES Expenditures for Other Services increased by approximately 22 percent in the first quarter of FY 2025 when compared to the first quarter of FY 2024. The most notable increase occurred in Public Housing and Welfare, which rose by approximately 72 percent, contributing significantly to the overall increase in this expenditure category. CAPITAL PROJECTS Capital project expenditures decreased by approximately 75 percent in the first quarter of FY 2025 compared to the first quarter of FY 2024. Significant reductions were observed in Education and General Government, reflecting the timing of capital project activity during the fiscal year. GENERAL GOVERNMEN T HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 2024 24,550,660 3,749,717 2,566,421 975,800 4,226,981 125,669 8,835,030 2025 29,343,514 1,720,042 1,334,507 1,167,163 6,177,443 40,384 15,208,036 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 Other Services 2024 2025 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 2024 353,969 52,784 - 26,700 997,803 23,364 23,364 2025 335,594 - 274,303 - 7,658 - - - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Capital Projects 2024 2025 1ST QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 8 SUMMARY In summary, the Territory’s total operating revenues for the first quarter of FY 2025 exhibited mixed performance across major revenue categories. Increases were recorded in Trade and Excise Tax and Gross Receipts Tax, while declines occurred in Individual Income Tax, Corporate Income Tax, and Real Property Tax. Total Other Revenues increased substantially, resulting in an overall increase in total revenue collections compared to the same fiscal-year-to-date period in FY 2024. On the expenditure side, salary and fringe benefit costs remained generally stable, while increases in Other Services and decreases in Capital Projects reflect normal expenditure timing patterns. Collectively, these results highlight the importance of continued monitoring of revenue and expenditure trends throughout the remainder of FY 2025.