OVERSIGHT BOARD CERTIFIES $33.3 BILLION FISCAL YEAR 2025 COMMONWEALTH BUDGET
Includes $1 Billion in Investments; Supports Priorities for Long-Term Stability and Economic Growth; Reflects Government’s Spending Priorities on Education and Health
San Juan, PR – July 1, 2024 – The Financial Oversight and Management Board for Puerto Rico certified the $33.3 billion fiscal year 2025 consolidated budget for the Commonwealth of Puerto Rico consisting of the $13.1 billion general fund budget, the $4.9 billion special revenue fund budget, and the $15.3 billion federal fund budget.
The general fund budget increases total spending by 3% from the last fiscal year and 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.
“The fiscal year 2025 budget includes important investments in education, health, and infrastructure to support not only Puerto Rico’s recovery and economic growth, but also the quality of life for all Puerto Rico residents,” said the Oversight Board’s Executive Director Robert F. Mujica Jr.
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.
“Budgets must be balanced, and a budget is not only balanced at the beginning of the year but must remain balanced throughout the fiscal year,” Mujica said. “The Government has consistently enacted spending bills in past fiscal years that were inconsistent with the budget and outside of the budget process. This budget process must be reformed. PROMESA mandates fiscal responsibility, and responsible budgeting means every dollar spent must be accounted for – in Government just like in any household or business.”
“For us at the Oversight Board, the approval of the budget is more than just a financial decision; it’s a statement of Government priorities and a commitment to invest in the future of the people of Puerto Rico without spending that would tip Puerto Rico back into deficit,” Mujica said.
The budget includes an additional $432 million in investments in education, including $121 million in Commonwealth funding for the University of Puerto Rico, contingent on UPR establishing and committing to goals and milestones for fostering academic excellence, economic development, and financial responsibility. In total, 15% of the budget, or $4.9 billion, is for education overall.
The budget also includes an additional $100 million for investments in health and welfare, including for mental health programs, intellectual disability, and medical residencies. In total, 20% of the budget, or $6.6 billion, is for health overall.
The budget further includes $242 million in new infrastructure investments, including for health centers, road maintenance and ferry operations, and water quality and flood control. An additional $132 million in funding goes to municipalities, including $30 million of funding to municipalities in need of greater financial support. The budget includes an additional $43 million to support the 2024 elections, including for ballot printing, additional staffing, and elections educational advertising.
The Oversight Board also certified the fiscal year 2025 budgets for:
- Puerto Rico Electric Power Authority (PREPA)
- University of Puerto Rico (UPR)
- Puerto Rico Sales Tax Financing Corporation (COFINA)
- Puerto Rico Industrial Development Company (PRIDCO)
- Public Corporation for Supervision and Insurance of Cooperatives (COSSEC)
- Municipal Revenues Collection Center (CRIM)
The Oversight Board already certified the fiscal year 2025 budgets for the Puerto Rico Aqueduct and Sewer Authority (PRASA) and Puerto Rico Highways and Transportation Authority (HTA).
All budgets are available on the Oversight Board’s website at https://oversightboard.pr.gov/budgets-2/