(San Juan, PR –May 31, 2018) – The Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”) created by Congress under the bipartisan Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA” or the “Act”) today unanimously recertified the New Fiscal Plan for the Commonwealth of Puerto Rico (“the New Fiscal Plan”) to reflect an understanding reached with the Government that will ensure timely implementation of critical structural reforms and comply with the short and long term goals of the New Fiscal Plan.
“The Oversight Board reiterates its commitment to the understanding reached with the Governor to reduce the risk of implementation of structural reforms and ensure compliance with the New Fiscal Plan,” said José Carrión, Chairman of the Oversight Board. “The fiscal and structural reforms, including the changes proposed by the Governor which are contingent on the approval of legislation by the end of this fiscal year to make Puerto Rico an “at-will employment” jurisdiction (repeal of Law 80) for current and new employees, will help return growth to our Island’s economy,” Carrión added.
Key changes include updating the economic scoring of the revised labor reform package to 0.8% growth, adding 0.15% growth of a newly incorporated Ease of Doing Business reform, the strengthening of the Nutritional Assistance Program work requirement enforcement language, and the adjustment of short and long term surplus figures that reflect these and other minor technical modifications.
The recertified New Fiscal Plan amends one of the reinvestment sections to reflect new investment priorities that minimize implementation risks and push forward economic development, such as funding for the government’s digital reform, the Central Recovery and Reconstruction Office, the Public-Private Partnership (P3) initiative, the Critical Infrastructure Office, and procurement reform, as well as an increased appropriation for the University of Puerto Rico scholarship fund. As part of the understanding with the Government of Puerto Rico, Christmas bonuses, vacation and sick days will remain as presently constituted for the public and private sector, for the remainder of the recertified New Fiscal Plan, provided that critical reforms, such as the repeal of Law 80, energy transformation, and welfare reform, are implemented.
“The Board has worked closely with the Governor and his staff in recent weeks to ensure the future success of the Island through the New Fiscal Plan,” said Carrión. “Working together, we believe we are putting Puerto Rico on the right path for financial stability now and in the future. That has always been the goal of the Board. The choices have not always been easy and we have had our disagreements, but we all want to do what is best for Puerto Rico.”
The Oversight Board Unanimous Written Consent certification regarding the recertified New Fiscal Plan and the text of the understanding reached with the Government of Puerto Rico can be found on the Board’s website www.juntasupervision.pr.gov.