MPs approve $51.8 million in Supplementary Expenditure for 2024

Members of Parliament approved $51.8 million in supplementary expenditure requests for the Cayman Islands Government’s 2024 financial year in Finance Committee on Friday, 11 October.

Premier and Minister of Finance Hon. Juliana O’Connor-Connolly chaired the Finance Committee proceedings.

Prior to submitting each request to a vote, Premier O’Connor-Connolly outlined the overall financial impacts of the requested appropriations.

She noted that the Section 12 Supplementary Expenditure requests totalled $51.8 million for the 2024 financial year, and that this amount includes $35.4 million in operating expenses and $16.4 million in capital expenditure.

The Premier explained that Core Government’s 2024 Operating Revenues are now forecasted to be $1.098 billion, which is $3 million more than the $1.095 billion originally budgeted; while Core Government’s 2024 Operating Expenses are forecasted to be $1.081 billion, which is $31 million more than the $1.050 billion originally budgeted.

Premier O’Connor-Connolly revealed that Core Government’s 2024 Operating Surplus is now forecasted to be $16.5 million, which is $28 million less than the $44.5 million originally budgeted.

In terms of capital projects, she explained that Core Government’s 2024 Capital Expenditure is forecasted to be $125.million, which is $47.5 million less than the $172.5 million originally budgeted.

With regard to borrowing, the Premier explained that Core Government is forecasted to borrow $27.0 million in 2024, which is directly in line with 2024-25 budget presented in December 2023.

Premier O’Connor-Connolly noted that with the additional appropriations accounted for, Core Government is forecast to maintain compliance with all six of the Principles of Responsible Financial Management as at 31 December 2024, with the Cash Reserves Days estimated at 96.94 days.

The Premier then put each of the 29 appropriation requests individually to Finance Committee for a vote, allowing MPs to ask questions of the requesting Ministries prior to casting their votes.

The appropriation requests approved in Finance Committee included the following:

• $597K requested by Cabinet Office to expand staff resourcing at Radio Cayman to meet current and future communication needs;

• $2 million requested by Cabinet Office for Radio Cayman studio refurbishment, modernisation and design;

• $350K requested by the Ministry of Finance & Economic Development as a contribution to the relocation costs of the Public Service Pensions Board from the Government Administration Building to Athena Tower;

• $200K requested by the Ministry of District Administration & Lands for land purchases to cover Gazetted claims;

• $99K requested by the Ministry of Financial Services & Commerce to cover the costs associated with work to take place ahead of the 5th round mutual evaluation under the Financial Action Task Force (FATF) standard;

• $306K requested by the Ministry of Financial Services & Commerce to cover the cost associated with access and suppression teams which will be required to carry out work associated with the implementation of the new Beneficial Ownership Transparency Act;

• $53K requested by the Ministry of Financial Services & Commerce to cover the costs of new staff required to meet international standards set by the Organization for Economic Cooperation and Development (OECD) Global Forum;

• $128K requested by the Ministry of Financial Services & Commerce to cover the costs associated with work to take place ahead of the 5th round mutual evaluation under the Financial Action Task Force (FATF) standard;

• $1.15 million requested by the Ministry of Financial Services & Commerce to cover the costs associated with work to take place ahead of the 5th round mutual evaluation under the Financial Action Task Force (FATF) standard and greater support for the reinsurance sector;

• $500K requested by the Ministry of Financial Services & Commerce to cover IT architectural changes as well as IT equipment to facilitate the implementation of the new Beneficial Ownership Transparency Act;

• $4.6 million requested by the Ministry of Investment, Innovation and Social Development to increase financial assistance payments for temporary and long-term financial assistance due to policy changes raising the amounts paid for accommodation, food and utilities, as well as adding new services for rental deposits, internet, transportation and food to ensure that recipients of the financial assistance were able to meet their basic needs, as well as to reduce barriers for those who are able to work;

• $2.2 million requested by the Ministry of Investment, Innovation and Social Development for payments to recipients of Seafarers and Veterans Ex-Gratia Benefits due to the fluctuating numbers of Seafarers and Veterans accessing this grant and additional funds provided to prepare for the arrival of Hurricane Beryl.

• $2.4 million requested by the Ministry of Border Control, Labour & Culture as an Equity Injection to develop and construct centralised housing for migrants;

• $3.5 million requested by the Ministry for Sustainability & Climate to cover the value of work carried out in 2024 in anticipation that the Integrated Solid Waste Management System (ISWMS) project would proceed;

• $550K requested by the Ministry of Planning, Agriculture, Housing, Infrastructure, Transport & Development to support improvements to the Cayman Islands’ public transport system, including a bus app which displays real-time information to enhance the reliability of services ($85,000) and for improving bus services to the Eastern Districts ($215,000) and to cover the costs associated with the ongoing human resources review, which is a critical initiative aimed at optimizing the operations of the Ministry’s departments ($250,000);

• $357K requested by the Ministry of Planning, Agriculture, Housing, Infrastructure, Transport & Development to address previously unfunded maintenance needs for the Recreation, Parks and Cemeteries Unit;

• $274K requested by the Ministry of Planning, Agriculture, Housing, Infrastructure, Transport & Development for the procurement and maintenance of the Government fleet, specifically to address unforeseen increases in the price of fuel and elevated usage rates;

• $713K requested by the Ministry of Planning, Agriculture, Housing, Infrastructure, Transport & Development to cover unbudgeted legal expenses incurred due to litigation between the Department of Planning and the National Conservation Council (NCC);

• $313K  requested by the Ministry of Planning, Agriculture, Housing, Infrastructure, Transport & Development to address costs associated with the procurement of license plates and various software subscriptions;

• $2.4 million requested by the Ministry of Planning, Agriculture, Housing, Infrastructure, Transport & Development to cover the unanticipated surge in the overall demand for agricultural supplies by farmers, as well as the continuing rise in the costs of these supplies;

• $784K requested by the Ministry of Planning, Agriculture, Housing, Infrastructure, Transport & Development to cover higher costs associated with paper, printing, utilities, janitorial services, and maintenance at the Government Administration Building and the Environmental Building;

• $500K requested by the Ministry of Planning, Agriculture, Housing, Infrastructure, Transport & Development to support the Assistance for Infrastructure, Development and National Disaster Response initiative;

• $4 million requested by the Ministry of Planning, Agriculture, Housing, Infrastructure, Transport & Development for the cost of the Environmental Impact Assessment of the East West Arterial Road/Highway;

• $4.4 million requested by the Ministry of Planning, Agriculture, Housing, Infrastructure, Transport & Development to provide an alternative solution to  the nation’s aging submarine cable infrastructure;

• $2.5 million requested by the Ministry of Planning, Agriculture, Housing, Infrastructure, Transport & Development to replenish the Kaibo Public Beach Park;

• $3.2 million requested by the Ministry of Health & Wellness To provide indigent patients with primary and secondary healthcare services, as well as dental and mental healthcare services;

• $13.2 million requested by the Ministry of Health & Wellness for the provision of non-Health Services Authority tertiary health care for indigents, seamen and veterans who are referred for treatment locally and overseas;

• $125K requested by the Premier on behalf of the Coast Guard for funding to establish Domain Awareness System around the Cayman Islands; and

• $410K requested by the Premier on behalf of the Office of the Commissioner of

Police for the purchase of entity assets for the RCIPS and Coast Guard.

A full recording of Finance Committee proceedings on Friday, 11 October 2024 may be found at: https://www.youtube.com/live/WDa9NlpV3gM?si=MLVpGyLyO7EU7mWb