Oversight Board’s 51st Public Board Meeting highlights key advances in the development of the fiscal year 2027 budget
During the Financial Oversight and Management Board for Puerto Rico’s 51st Public Board Meeting, Executive Director Robert F. Mujica, Jr. reported major progress on budget development and long‑term fiscal reform within Government.
Mujica emphasized that the fiscal year 2027 budget, developed under a co-leadership model which shifts primary accountability back to the Government, “marks an important milestone in the work of the Oversight Board and the implementation of PROMESA’s mandate of providing a method for Puerto Rico to achieve fiscal responsibility and access to the capital markets.”
Key actions from the Government that were highlighted during the meeting include: advancing legislation to establish permanent fiscal safeguards—including a budget stabilization fund, a capital fund, and a five‑year financial plan—and approving a $554 million tax rebate, made possible by stronger‑than‑expected revenues.
“The fiscal year 2027 budget reflects the Government’s commitment to discipline, transparency, and long-term planning, and while the fiscal environment remains challenging, Puerto Rico is in a stronger position today because of the structure built through years of collaboration between the Government and the Oversight Board”, stated Oversight Board Budget Management Director Elisa Guardiola.
Guardiola highlighted long-term institutional reforms implemented by the Government, including budget preparation with the applicable guidelines for development. Furthermore, Guardiola discussed four key budget topics: the Government’s general fund, revenue performance and economic trends, existing risks, and fiscal safeguards protecting Puerto Rico from future instability.
The Public Board Meeting’s discussion noted the importance of institutionalizing reforms: implementing modified accrual accounting, publishing updated fiscal reports, completing a comprehensive compensation framework for government employees, and advancing student‑based budgeting to align school funding with student needs.
Listen to the Executive Director’s remarks.
Listen to the Budget Management Director’s updates.
Office of Management and Budget (OMB) Director Orlando Rivera Berríos presented an overview of the budget for fiscal year 2027.
The Government of Puerto Rico provided an update on the implementation of the Enterprise Resource Planning (ERP) system, a strategic priority for Puerto Rico’s fiscal modernization.
The ERP will significantly reduce the time required to produce financial reports, enhance transparency and timeliness in reporting, and strengthen internal controls to support long-term fiscal management.
Watch the 51st Public Board Meeting.
Oversight Board supports new legislation to strengthen Puerto Rico’s fiscal safeguards
The Oversight Board has long advanced a budget stabilization fund, a capital fund, and a five‑year financial plan for Puerto Rico. The Government and the Oversight Board have worked together to develop over many months legislation that would introduce such permanent fiscal safeguards.
The cooperation led Governor Jenniffer González Colón to introduce this important legislation in May. It will help ensure that Puerto Rico has strong reserves to protect its people during a crisis. Building strong reserves and maintaining a credible multi‑year financial plan are essential for protecting critical services, ensuring responsible planning, and preventing the fiscal instability that contributed to Puerto Rico’s past crises.
The Legislative Assembly now has the opportunity to strengthen and advance the proposed fiscal safeguards. The Oversight Board welcomes this engagement.
Lasting progress requires institutional safeguards that protect future generations and maintain fiscal credibility. Puerto Rico’s recent progress—controlled spending, structural surpluses, and a stabilized budget—must be preserved to ensure continued access to capital markets.
This legislation marks a meaningful step toward that long‑term stability.
Stakeholder engagement:
May 19, 2026
Oversight Board Member John Nixon and Executive Director Robert F. Mujica, Jr. met with the Puerto Rico Manufacturers Association, the College of Certified Public Accountants of Puerto Rico, the Puerto Rico Chamber of Commerce, and the United Retailers Center to discuss what effective tax reform would look like for Puerto Rico.
May 20, 2026
Students from the Financial Management Association’s Río Piedras Chapter at the University of Puerto Rico met with Oversight Board Chair Arthur J. Gonzalez, Board Members John Nixon and Dr. Betty Rosa (the Commissioner of the New York State Education Department) and Executive Director Robert F. Mujica, Jr. to discuss PROMESA, the role and responsibilities of the Oversight Board, Puerto Rico’s fiscal progress, and the fiscal and economic challenges facing the Island.
May 21, 2026
Oversight Board Deputy Executive Director Arnaldo Cruz participated in the Industrial Core Summit, organized by the Puerto Rico Manufacturers Association, along with the Office of Administration and Transformation of Human Resources (OATRH) Executive Director Facundo Di Mauro Vázquez. During the panel, they highlighted the 2023 civil service reform that unified more than 300 salary structures and made Puerto Rico the first jurisdiction to adopt a fully skills‑based recruitment model. The panel also announced a forthcoming standardized compensation policy and a digital talent platform for government employees.
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