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FISCAL YEAR 2025 4TH QUARTER REVENUE & EXPENDITURE REPORT 4th 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 Salaries .............................................................................................................................................. 6 Fringe Benefits .................................................................................................................................. 6 Other Services ................................................................................................................................... 7 Capital Projects ................................................................................................................................. 7 Summary ........................................................................................................................................... 8 4th QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 2 EXECUTIVE SUMMARY This report provides an overview of the Territory’s General Fund revenue collections and expenditures for the fourth quarter of Fiscal Year (FY) 2025, with comparisons to the same period in FY 2024. The purpose of this report is to support fiscal oversight, identify emerging revenue and expenditure trends, and promote transparency and accountability in public resource management. The data presented reflects unaudited, preliminary figures available at the time of publication. As such, amounts are subject to revision and should be interpreted accordingly. Final figures will be reported in the FY 2025 Financial Audit Report issued by the Department of Finance. General Fund revenues during the fourth quarter of FY 2025 demonstrated mixed performance across major categories. Trade and Excise Taxes and Gross Receipts Taxes recorded modest growth compared to FY 2024, partially offsetting declines in Individual Income Tax, Corporate Income Tax, and Real Property Tax collections. Overall revenue performance reflects ongoing economic variability and compliance trends across districts. On the expenditure side, General Fund spending declined across most major categories during the quarter. Salary and fringe benefit expenditures decreased notably, reflecting vacancies, timing of payroll costs, and continued expenditure controls. Other Services expenditure declined overall, though increased activity was observed within Transport & Facilities. Capital project expenditures were lower compared to FY 2024, consistent with the completion or deferral of major projects. Taken together, fourth quarter FY 2025 results indicate continued fiscal restraint on the expenditure side and a revenue environment that warrants close monitoring. These trends underscore the importance of sustained revenue oversight and disciplined financial management to support the Territory’s long-term fiscal stability. 4th QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 3 REAL PROPERTY Real Property Tax collections declined in the fourth quarter of FY 2025 compared to the same period in FY 2024. Territory-wide collections decreased by approximately 4 percent. St. Thomas/St. John experienced a decline of approximately 6 percent, while St. Croix recorded a modest increase of approximately 2 percent. INDIVIDUAL INCOME Individual Income Tax collections declined by approximately 10 percent Territory-wide during the fourth quarter of FY 2025. St. Thomas/St. John collections decreased by approximately 5 percent, while St. Croix recorded a more pronounced decline. 23,022,308 21,537,875 8,196,381 8,356,009 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 FY 2024 FY 2025 Real Property St. Thomas/St. John St. Croix 68,829,034 65,447,696 21,083,003 15,485,438 - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 FY 2024 FY 2025 Individual Income St. Thomas/St. John St. Croix 4th QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 4 CORPORATE INCOME Corporate Income Tax collections declined by approximately 13 percent compared to the fourth quarter of FY 2024. The decrease was concentrated in St. Thomas/St. John, while collections in St. Croix remained relatively stable. TRADE AND EXCISE Trade and Excise Tax collections increased by approximately 4 percent during the fourth quarter of FY 2025, with stronger growth observed in St. Croix relative to St. Thomas/St. John. 12,034,493 9,843,108 4,360,083 4,379,732 - 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 7,958,944 8,071,633 976,703 1,188,374 - 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 4th QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 5 GROSS RECEIPTS Gross Receipts Tax collections increased by approximately 3 percent Territory-wide compared to FY 2024. St. Thomas/St. John experienced moderate growth, while St. Croix collections declined slightly. EXPENDITURES Expenditures presented in this report reflect appropriated lapsing General Fund spending and are analyzed by major functional categories of government. Non-lapsing General Fund expenditures are not included in this report and are expected to be incorporated in future reporting iterations. Expenditure patterns should be interpreted with caution. While the data provides insight into spending trends during the fourth quarter of FY 2025, expenditures are inherently cyclical and may fluctuate due to timing of payments, project schedules, and operational needs. Comparisons across quarters therefore reflect both fiscal policy decisions and timing‑related factors. Salary expenditures tend to be more predictable relative to other spending categories and may provide clearer signals of underlying workforce trends. However, given that all figures presented are preliminary and unaudited, caution is advised when drawing conclusions regarding long‑term expenditure trajectories. 39,548,277 41,080,868 11,411,229 11,321,754 - 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 FY 2024 FY 2025 Gross Receipts St. Thomas/St.John St. Croix 4th QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 6 SALARIES Salary expenditures declined by approximately 24 percent in the fourth quarter of FY 2025 compared to FY 2024, with notable reductions across several functional areas. FRINGE BENEFITS Fringe benefit expenditures declined by approximately 18 percent during the quarter, reflecting reduced payroll costs and related benefit expenses. GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 2024 43,212,156 3,587,867 1,935,825 15,409,720 30,007,929 1,324,841 5,596,791 2025 32,909,141 2,792,492 1,605,097 10,366,980 23,886,925 1,027,736 4,257,843 - 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 2024 2025 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 2024 17,565,011 1,605,442 986,185 4,734,848 15,445,479 728,334 2,689,258 2025 14,734,622 1,267,548 844,604 3,619,307 12,638,050 602,034 2,055,816 - 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 4th QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 7 OTHER SERVICES Other Services expenditures declined by approximately 31 percent overall, though Transport & Facilities recorded increased activity associated with service-related costs. CAPITAL PROJECTS Capital project expenditures were lower in the fourth quarter of FY 2025 compared to FY 2024, primarily reflecting decreased activity in Transport & Facilities. GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION PUBLIC HOUSING & WELFARE 2024 50,604,690 5,109,791 3,039,846 1,609,730 10,271,230 132,400 12,625,217 2025 15,819,845 4,994,166 6,125,274 1,501,003 5,761,579 89,234 23,110,441 - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 Other Services 2024 2025 GENERAL GOVERNMENT HEALTH & HUMAN SERVICES TRANSPORT. & FACILITIES PUBLIC SAFETY EDUCATION CULTURE & RECREATION 2024 353,969 52,784 2,284,141 - - 29,061 2025 632,976 - 389,705 - - - - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Capital Projects 2024 2025 4th QUARTER REVENUE & EXPENDITURE REPORT FISCAL YEAR 2025 8 SUMMARY Fourth quarter Fiscal Year (FY) 2025 results reflect a mixed revenue environment and continued fiscal discipline on the expenditure side. Growth in Trade and Excise Taxes and Gross Receipts partially offset declines in Individual Income, Corporate Income, and Real Property Tax collections, highlighting areas of both resilience and vulnerability within the General Fund. Expenditures declined across most major categories during the quarter, driven primarily by reductions in salary and fringe benefit costs and overall decreases in Other Services spending. Capital project expenditures were also lower compared to the prior year, consistent with the completion or deferral of major projects. Overall, fourth quarter FY 2025 performance underscores the importance of continued revenue monitoring and prudent expenditure management to support the Territory’s long‑term fiscal stability.