Key Updates - June 2024
Financial Oversight & Management Board for Puerto Rico
Working to provide Puerto Rico, its people, and businesses the stability and prosperity they deserve.
Oversight Board Certifies Fiscal Year 2025 Budget for the Commonwealth
On June 30, the members of the Oversight Board certified the budget for the Commonwealth of Puerto Rico’s fiscal year 2025, which begins on July 1.?
The $33.3 billion budget includes additional funding for social programs, including assistance for aging adults, support for mental health, early childhood resources, and prevention plan against violence. The budget provides sufficient funding for critical services such as education, health, public safety, social welfare, and economic development.?
Executive Director Robert F. Mujica, Jr. said, “The budget not only supports Puerto Rico’s recovery and economic growth but includes investments that improve the quality of life for all Puerto Rico residents.”?
For the first time, the budget also includes provisions to control Government spending outside the budget process. Spending bills or laws must identify how the Government intends to pay for the cost of bills or laws.
President Joe Biden Appoints Oversight Board Members
President Joe Biden appointed one new member to the Oversight Board and reappointed two existing members in June. ?
Former bankruptcy judge Arthur J. Gonzalez was appointed to the Oversight Board by former President Barack Obama in August of 2016. Dr. Betty A. Rosa, Commissioner of Education and President of the University of the State of New York, was appointed by former President Donald Trump in 2020. Both have been reappointed by President Biden and will continue serving as members of the Oversight Board. ?
The President also announced the appointment of Luis Ubi?as as a new member of the Oversight Board. Ubi?as, who was raised in New York by Puerto Rican parents, is a Harvard graduate and has had a successful career across business, government, and the non-profit sector.
Chairman David Skeel to leave the Oversight Board?
After almost eight years serving as a member of the Oversight Board, David A. Skeel, Jr., said he decided not to seek a third term. ?
“I am proud of what we have accomplished together in cutting the debt and stabilizing Puerto Rico’s finances,” said Skeel. “I have never done anything in my professional life that I consider as meaningful as my work for the people of Puerto Rico, and I know the Oversight Board will achieve PROMESA’s mandate of ensuring long-term fiscal responsibility, restoring sustainable economic growth, and providing the people of Puerto Rico with the opportunities they deserve.” ?
Oversight Board Certifies Fiscal Plans for the Commonwealth and Several Government Agencies?
In June, the Oversight Board certified a revised Fiscal Plan for Puerto Rico. The new Fiscal Plan has been updated with the most recent data and projections for revenue and expenses, and a renewed roadmap for Puerto Rico to achieve fiscal responsibility. ?
“Puerto Rico made a lot of progress. Together with the Government, the Oversight Board stabilized Puerto Rico’s finances, and substantially reduced its debt. Fiscal responsibility, however, is more than completing the debt restructuring and stabilizing Puerto Rico’s finances, “said the Oversight Board’s Executive Director Robert F. Mujica, Jr. “The Fiscal Plan defines the fiscal priorities for Puerto Rico so we can complete the path that will lead to sustainable economic growth and opportunity for the people of Puerto Rico.” ?
Economic growth is the key to unlocking Puerto Rico’s future. The Government will need to make targeted investments and implement profound structural reforms to produce sustainable growth, and support government revenues. The Fiscal Plan serves as a roadmap for investments and reforms in such areas as education and electricity. ?
In addition to the Commonwealth’s revised Fiscal Plan, the Oversight Board also certified the updated fiscal plans for the Puerto Rico Aqueduct and Sewer Authority (PRASA), Municipal Revenue Collection Center (CRIM), Puerto Rico Industrial Development Company (PRIDCO) and the Puerto Rico Sales Tax Financing Corporation (COFINA).
Oversight Board Holds 44th Public Board Meeting
On June 5, the Oversight Board held its 44th public board meeting, during which the Executive Director of the Oversight Board, Robert F. Mujica, Jr. gave an update on the Board’s work since the last public board meeting and provided details on the new fiscal plan for Puerto Rico. ?
领英推荐
Also, during the 44th Public Board Meeting, Juan Sabater, who was appointed as a member of the Oversight Board in January 2024, was formally introduced. ?
Full Speed Ahead on Civil Service Reform at the Puerto Rico Department of Education?
Puerto Rico’s public school system is continuing to its transformation with the recent launch of the new recruitment and talent management platform, part of the Civil Service Reform (CSR) project that is being implemented at several government agencies. ?
In a podcast, Arnaldo Cruz, the Deputy Executive Director of the Oversight Board, discussed the progress being made within the Department of Education with Education Secretary Dr. Yanira Raíces. ?
The successful launch of the recruitment platform saw 8,544 applications for 177 job postings at the Education Department that were listed in April. ?
The goal of improving recruitment and talent management at the Education Department is to hire and train the best employees to provide excellent service to schools and students. The Oversight Board will continue collaborating with the Puerto Rico Government on this important initiative. ?
Backlog at the Property Registry Reduced by More than Half Thanks to Oversight Board Led Taskforce
The joint initiative between the Oversight Board and the Puerto Rico Government to register documents that have been backlogged for years at the Property Registry is continuing to make solid progress. ?
Since University of Puerto Rico (UPR) Law students began assisting the Property Registry in 2020, the registration process for 277,000 properties has been completed. There are 138,000 unregistered properties still pending of the 415,000 that needed to be registered when the project began. ?
The taskforce established by the Department of Justice, UPR, and the Oversight Board is on track to eliminate the entire backlog by June 2025. Without this Fiscal Plan task force, it would have taken at least 13 years to close the backlog.
Engagement with Stakeholders:
June 23, 2024
Oversight Board Executive Director, Robert F. Mujica, Jr. met with stakeholders to discuss legalizing road gambling machines to financially support police retirement benefits. Act 42 currently benefits gambling operators more than retired police officers. Amending Act 42 would better reflect the core purpose of supporting retirees. The Oversight Board also added $2.2 million for police and other high-risk officer life insurance coverage to the fiscal year 2025 budget, including coverage for additional incidents and expanding beneficiary eligibility regardless of hire date.
June 10, 2024
Robert F. Mujica, Jr., Executive Director of the Oversight Board, met with summer interns from the Office of Management & Budget and learned about their experiences working at the agency. The interns are part of the Roberto Sánchez Vilella program for university students in Puerto Rico. The Oversight Board continues to support the educational and professional development of Puerto Rico’s future leaders.
Read our?most recent blogs: