Oversight Board’s 50th Public Board Meeting highlights new phase in Puerto Rico’s fiscal evolution
During the Financial Oversight and Management Board for Puerto Rico’s 50th Public Board Meeting, Executive Director Robert F. Mujica, Jr. highlighted the work with the Government on developing the budget for the fiscal year 2027, which begins on July 1, 2026.
“Based on the most recent data, we anticipate tax collections in Puerto Rico to decline from the previous year,” Mujica said. It is too early to say whether this is a trend, but, Mujica said, “Years of fiscal discipline have put Puerto Rico in a much better position to withstand a slowdown in tax revenues.”
As federal stimulus declines and revenue growth begins to slow, the fiscal year 2027 budget has remained consistent with 2026 levels, continuing to fund critical reserves, strengthen long‑term planning, and support responsible tax relief.
The importance of Government continuing to focus on fiscal risk mitigation through strategic planning was another crucial topic.
“Revenue trends have softened, that means we must continue planning carefully and avoid returning to unsustainable budgeting approaches”, said Oversight Board Budget Management Director Elisa Guardiola.
“The Government is now transitioning from crisis budgeting to institutional and strategic budgeting,” Mujica noted.
This transformation includes rebuilding reserves, formally funding infrastructure investments, reinforcing the Office of Management and Budget (OMB), and implementing permanent reforms designed to ensure Puerto Rico does not return to the fiscal instability of the past.
To listen to the Executive Director’s remarks, click here.
To listen to the Budget Management Director’s updates, click here.
To watch the 50th Public Board Meeting, click here.
The Government is Strengthening Financial Planning Staff
The Oversight Board has started to transfer responsibilities for fiscal and budget matters to the Government.
To ensure sufficient staffing, the Oversight Board supported the Office of Management and Budget (OMB) in developing a Workforce Reform Plan and hiring professionals to help build new processes and systems from the ground up, a true start-up experience within Government.
Professionals who join OMB will work in areas such as federal funds management, capital and debt planning, economic forecasting and revenue, statistics, and data.
These roles are more than jobs; they are an opportunity to shape Puerto Rico’s fiscal strategy for decades to come. The selected candidates will work closely with other professionals at OMB and the Oversight Board to design and implement innovative solutions that enhance fiscal stability and help Puerto Rico regain access to capital markets.
“This unit is part of a series of activities, initiatives, and projects that will be carried out in collaboration with the Government to create a post-PROMESA Government”, explained Oversight Board Deputy Executive Director Arnaldo Cruz.
In February, Cruz and OMB Director Orlando Rivera Berríos had an in-depth discussion about these new roles. This collaborative effort marks an important step toward building a stronger public sector in Puerto Rico.
2026 Economic Forecast Symposium provides outlook for the economy
Puerto Rico’s economic growth will continue, but at a slower pace, and the Island’s future hinges on private investment, labor participation, and structural reforms that boost financial stability. This was the consensus between the economists and experts who participated in the 2026 Economic Forecast Symposium.
“Puerto Rico cannot fix its credit without fixing confidence, and confidence starts with credible budgets built on credible economic assumptions,” said Oversight Board Executive Director Robert F. Mujica Jr. in his opening statement.
The 2026 Economic Forecast Symposium took place at the Puerto Rico Capitol, convening representatives from the Oversight Board, economists, government officials, and fiscal leaders to assess Puerto Rico’s economic outlook and identify emerging risks.
Discussions focused on the sustainability of current growth, the pace of federal
reconstruction spending, and the Island’s exposure to fiscal pressures, particularly related to Medicaid funding.
The Symposium underscored the importance of proactive policy planning and structural reforms to support long-term economic stability.
The economists pointed to federal funding as a significant growth driver. Billions for reconstruction through 2035 keep the construction sector active, support job stability, and help anchor short-term growth.
But panelists also raised concerns about painfully slow disbursement and the Island’s capacity to execute large-scale projects constrained by labor shortages, rising material costs, limited contractor bandwidth, and bureaucratic obstacles.
Watch the 2026 Economic Symposium and learn more about each of the panelists’ insights here or read our blog.
Oversight Board approves regulation for competitive procurement in Government
The Oversight Board has been working with the General Services Administration (GSA) to ensure that the Government receives maximum value for every purchase. This is not only fiscally responsible, but it is also essential to restoring trust in public institutions and fostering financial stability.
The Oversight Board approved a regulation established by the GSA, titled Uniform Regulation for Procurement and Bids of Goods, Works and Nonprofessional Services. This new regulation marks an important step forward in aligning purchasing, bidding, and contracting procedures with the Fiscal Plan.
The regulation: establishes a new office responsible for monitoring government procurement processes, requires government agencies to submit their procurement regulations to GSA, establishes reporting as a mandatory practice, strengthens government oversight in contracting, provides a clear definition of professional and nonprofessional services, classifies technology services by complexity, and supports continuance of digitalized procurement.
Oversight Board Deputy Executive Director Arnaldo Cruz said, “The Oversight Board will continue to advocate for procurement reforms, including those that require legislative changes.”
Stakeholder engagement:
January 30, 2026
Oversight Board Deputy Executive Director Arnaldo Cruz joined OMB Director Orlando Rivera Berríos in the show Última Palabra with Alexandra Lúgaro, where they discussed the reforms taking place at OMB, which have led to the creation of new positions at the agency with responsibilities in the areas of fiscal planning, budgeting, and federal funds management.
February 12, 2026
Oversight Board Executive Director Robert F. Mujica, Jr. attended the 2026 Forward Summit, where he participated in a fireside chat with Red Ventures Co-founder and CEO Ric Elias. During the conversation, Mujica spoke about Puerto Rico’s economic progress, personal anecdotes from his role in the Oversight Board, its evolution since he first stepped in, and his perception regarding pathways for long-term investment in Puerto Rico.
February 26, 2026
Oversight Board Executive Director Robert F. Mujica, Jr. spoke at the Centro Unido de Detallistas Economic Development Summit about budget reform, permit reform, tax reform, and energy reform as critical elements for efficient Government and a prospering economy.
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