Financially stable and sustainable municipalities are crucial for providing the services residents need and deserve. But each municipality faces different challenges and opportunities, which is why this year, the Oversight Board and the Government provided an additional $30 million in one-time funding to support those municipalities that need additional funding the most.
Forty municipalities were identified by the Office of Management and Budget (OMB) as vulnerable. The Oversight Board reviewed the list and all 40 of the municipalities included in the final list have already received the funds.
So, how did OMB determine which municipalities are most in need of additional funding?
OMB utilized an objective scoring system based on the Social Vulnerability Index (“SVI”) and Economic Capacity Index (“ECI”). These two calculated indexes provided the data the OMB used to score and rank municipalities across various economic and social indicators.
After OMB calculated the weighted score of both the SVI and ECI for each municipality, OMB identified the 29 municipalities with the lowest weighted score based on SVI and ECI, and included 11 additional municipalities with an ECI of 0%. A total of 40 municipalities were designated as the most vulnerable in Puerto Rico.
Distribution of the Essential Services Fund
To maximize continuation of essential services, OMB proposed utilizing comparable funding levels to those received by the 40 municipalities in the prior fiscal year 2023, which included an allocation from the $44 million commonwealth transfer to the Municipal Equalization Fund and an allocation from the funding received from the American Rescue Plan/Governor’s Municipal Strengthening Fund.
Working closely with OMB, the Oversight Board approved the use of the SVI and ECI scoring system proposed by OMB and also approved the proposed allocation.
The Commonwealth budget for the current fiscal year 2024, which the Legislative Assembly passed, the Governor signed, and the Oversight Board certified also includes significant funding to all municipalities. In total, for fiscal year 2024 the municipalities have access to approximately $280 million in subsidized funding distributed through the central government.
The Oversight Board continues to support Puerto Rico’s municipalities in helping to improve fiscal responsibility through more efficient spending, economic development, and maximization of federal funds.
| Municipality | Amount |
|---|---|
| Adjuntas | $872,892 |
| Aguadilla | $219,353 |
| Aguas Buenas | $888,965 |
| Arroyo | $783,207 |
| Barranquitas | $1,075,259 |
| Cabo Rojo | $35,592 |
| Ciales | $753,240 |
| Coamo | $776,776 |
| Comerío | $1,134,762 |
| Corozal | $1,006,542 |
| Florida | $852,327 |
| Guánica | $796,105 |
| Guayama | $156,828 |
| Guayanilla | $727,599 |
| Hormigueros | $498,460 |
| Jayuya | $760,320 |
| Juana Díaz | $558,900 |
| Juncos | $570,323 |
| Lajas | $676,021 |
| Lares | $947,719 |
| Municipality | Amount |
|---|---|
| Las Marías | $807,382 |
| Loíza | $1,013,716 |
| Maricao | $635,199 |
| Maunabo | $850,547 |
| Moca | $825,942 |
| Morovis | $1,022,984 |
| Naguabo | $700,745 |
| Naranjito | $1,051,864 |
| Orocovis | $1,102,379 |
| Patillas | $800,167 |
| Peñuelas | $576,969 |
| Quebradillas | $762,530 |
| Sabana Grande | $732,366 |
| Salinas | $752,995 |
| Utuado | $982,230 |
| Vega Alta | $523,777 |
| Vega Baja | $355,683 |
| Vieques | $561,841 |
| Villalba | $1,037,643 |
| Yabucoa | $811,851 |
