Key Updates - August & September 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 held 45th Public Board Meeting, focusing on the energy sector transformation and Puerto Rico’s economic development
On September 18 the Oversight Board held it’s 45th Public Board Meeting where Executive Director Robert F. Mujica Jr. emphasized the importance of Puerto Rico’s energy sector transformation. The improvements in the electrical grid infrastructure and reliability are not where the people of Puerto Rico expect them to be, this many years after Hurricane Maria. “The current situation and pace are not acceptable and should not be normalized,” said Mujica during the Oversight Board’s 45th Public Board Meeting.?
Working with the Government, the Oversight Board will take a more active role in removing roadblocks to expedite approvals, prioritizing the projects that can be done right now.
Click here to listen to Mujica’s full remarks from the 45th Public Board Meeting.
Also during the Public Board Meeting, the Oversight Board’s Revitalization Coordinator, José R. Pérez-Riera , spoke about a new integrated plan for Puerto Rico’s economic development to benefit the people of Puerto Rico.
The Oversight Board supports the establishment of the U.S. Census Bureau’s Puerto Rico Federal Statistical Research Data Center?
The U.S. Census Bureau recently announced the creation of the Puerto Rico Federal Statistical Research Data Center, which will improve the statistical capacity in Puerto Rico and enable local officials, policy makers, investigators and others to make more informed, timely data-driven decisions.?
Access to accurate and timely data is essential for decision making. Investigators studying issues that impact Puerto Rico depend on data, as do the Government and the Oversight Board.?
The Oversight Board’s Executive Director Robert F. Mujica Jr. was among the speakers at the official ribbon cutting ceremony held at the University of Puerto Rico’s Botanical Gardens on September 9.?
“We all have dreams. We all have visions of what we want the future to look like. But how can we make those visions come true if we cannot determine where we stand right now?” Mujica said at the event. “How can we determine our path to the future without a map? To envision and plan means to study the facts and to quantify information.”?
During their visit to Puerto Rico, Census officials also sat down with the Oversight Board’s Deputy Executive Director Arnaldo Cruz , to discuss the project in more detail, explaining how the center will soon provide local researchers secure access to federal data for advanced statistical research and analysis.
Oversight Board approved use of Emergency Reserve funds related to Tropical Storm Ernest
Ernesto hit Puerto Rico as a tropical storm on August 14, bringing torrential rain and significant damage before turning into a hurricane just north of the island. ?The Oversight Board authorized the Government to access to the Emergency Reserve Fund for expenses related to the emergency response.?
The Emergency Reserve was established in 2018 through the Fiscal Plan for Puerto Rico and has strict rules that ensure the Government can use the funds only for emergencies, not for other Government expenses. The funds are available when unexpected disasters strike to provide urgent relief to the residents of Puerto Rico.?
The Oversight Board’s Executive Director Robert F. Mujica responded to the Government’s request ahead of the storm in a letter dated Aug. 13, 2024. The Office of Management and Budget must submit a report of the expenditures incurred during the emergency.?
In the past, the Government tapped into the Emergency Reserve after Puerto Rico’s massive earthquakes in 2020 and Hurricane Dorian in 2019. The Emergency Reserve provided food and shelter after the earthquakes and? vital support to municipalities, funded the temporary relocation of schools during the COVID-19 pandemic, and funded many other measures to help the people of Puerto Rico in times of crisis.?
In September the Oversight Board also approved a $14 million budget allocation to help compensate farmers for the damages the storm caused to their crops and equipment.?
In a Sept. 26, 2024 letter, the Oversight Board approved the Government’s request for the Agricultural Enterprises Development Administration to receive the budget increase.?
According to local reporting after the storm, Ernesto caused an estimated $23.5 million in losses for Puerto Rico’s agricultural industry, including damages to equipment and the loss of acres of plantains, coffee, bananas and citrus crops.
Oversight Board continues to support municipalities
The financial stability of Puerto Rico's municipalities directly impacts their ability to consistently provide services. Because of this, the Oversight Board remains focused on helping them become financially stable. That is why the Oversight Board ensured that the Commonwealth budget for the current fiscal year 2024 includes additional funding for municipalities.?
The Oversight Board also understands that the not every municipality faces the same challenges. Some municipalities have smaller populations, lower income levels, more elderly residents, limited economic capabilities and ability to generate revenues, and a greater dependency on the General Fund for their budgets.?
The Oversight Board has provided funding to help municipalities with these challenges. In addition to approving funding for municipalities, the Oversight Board also established initiatives to boost economic development and maximize the responsible use of federal funds.?
Read more here.
Oversight Board approved $29.9 million for projects that would ensure safe water services for Puerto Rico?
The Oversight Board approved a transaction for the Aqueduct and Sewer Authority (PRASA) to borrow over $29.9 million from the federal Drinking Water State Revolving Fund Program to finance substantial repairs, improvements, and new construction.?
In a letter dated Aug. 23, 2024, the Oversight Board said the debt transaction aligns with PRASA’s Fiscal Plan, as it would fund 15 capital projects addressing PRASA’s water intake, treatment plants, and related infrastructure projects crucial for ensuring the provision of safe water services with funds provided through a federal program.?
“By facilitating cost-effective capital investments, the agreement mitigates PRASA’s need to use operating revenues to meet capital investment targets and reflects a commitment to securing necessary funding while ensuring financial sustainability for PRASA’s infrastructure projects,” said Oversight Board Executive Director Robert F. Mujica, Jr. in the letter.?
Read more about ongoing PRASA infrastructure projects on the media page on the Oversight Board’s website.
领英推荐
Oversight Board approved a $18.5 million debt transaction to increase the number of affordable housing units in Loíza
The Oversight Board approved a $18.5 million debt transaction that would allow the Housing Finance Authority to partially fund the acquisition and rehabilitation of 107 affordable housing units in the Municipality of Loiza. The housing units are within an affordable rental-housing project called Jardines de Loíza.?
The debt transaction was approved in a letter dated Aug. 28, 2024.?
“We appreciate the parties’ efforts in providing access to financing programs for the development of affordable housing across Puerto Rico,” said Executive Director Robert F. Mujica, Jr. “We look forward to continuing our work together forthe benefit of Puerto Rico and its residents.”?
This is the fourteenth affordable housing project proposal using this type of financing structure that the Oversight Board has approved.
Oversight Board approved debts transactions to fund for road and building improvements in Comerío and Corozal
On August 29, 2024, the Oversight Board approved two debt transactions to finance $965,000 for road improvements, building renovations and more within the municipality of Comerío, and $2.195 million for the same types of projects at Corozal.?
The Corozal debt transactions were approved with several conditions, including that the municipality must improve its property tax-collection rate from the current 54% to at least 69%, to support the municipality’s expenses. The Oversight Board set similar conditions for Comerío, which must improve its property tax-collection rate from the current 59% to at least 69%.?
The Oversight Board encourages the municipalities to work with CRIM to assist and improve property tax collections through the measures set forth in the CRIM Fiscal Plan.
In the news:
August 2, 2024 ?
Executive Director Robert F. Mujica, Jr. discussed in an interview with TV and radio host Jay Fonseca the Oversight Board's role, the importance of budget reforms and renewable energy, and the work ahead to achieve long-term economic growth and fiscal responsibility in Puerto Rico.
Stakeholder engagement:
September 10, 2024 ?
The Oversight Board’s Revitalization Coordinator José R. Pérez-Riera met with members of the Associated General Contractors of America to discuss the construction industry’s role in Puerto Rico’s economic development. The Association recently held its 50th Annual Convention and plays an important role in Puerto Rico’s reconstruction efforts after devastating hurricanes and earthquakes.
September 11, 2024
Revitalization Coordinator José Ramón Pérez-Riera met with his fellow Economic Development and Commerce secretaries and the Executive Director of the COR3 | Central Office for Recovery, Reconstruction and Resiliency Manuel A.J. Laboy, PE, MBA to discuss ongoing efforts for Puerto Rico’s reconstruction and economic growth.
September 17, 2024 ?
Oversight Board members Betty Rosa , John E. Nixon, CPA and Luis Ubinas , along with Executive Director Robert F. Mujica Jr. , met with representatives from several non-profit organizations, including the Boys & Girls Clubs of Puerto Rico , which are working to improve educational opportunities for the island’s children and youth.?
September 24, 2024 ?
Oversight Board Executive Director Robert Mujica, Jr., together with Puerto Rico Secretary of State Omar J. Marrero , and Puerto Rico's Office of Management and Budget Director Juan Carlos Blanco , met with a group of Puerto Rico mayors to discuss available funding and areas of focus to improve municipal services and advance Puerto Rico's economic growth. This fiscal year 2025, the Oversight Board, working with the Government, is supporting municipalities with $342 million in funding, more than in the previous seven years.
Read our?most recent blogs: