USVI governor warns of 500 layoffs amid crisis

SAN JUAN, Puerto Rico

The governor of the U.S. Virgin Islands is warning legislators that he will have to lay off hundreds of employees if they do not approve measures to alleviate a fiscal crisis.

Gov. John DeJongh says that at least 500 employees will be dismissed by the end of June if budget cuts are not approved.

He says the U.S. Caribbean territory is facing a $17.4 million shortfall this year and an estimated $90 million shortfall next year.

DeJongh also criticized legislators for rejecting several proposals to alleviate an economic crisis such as postponing raises and giving up paid holidays.

He said in a statement released Saturday that the crisis has reached a tipping point.