Governor Rosselló focuses on security and energy reform in Puerto Rico during his second State address
(March 5, 2018 - El Capitolio, San Juan) During his second speech regarding the situation of the State, the governor of Puerto Rico, Ricardo Rosselló, announced the salary increase of $ 1,500 a year for the police, the highest increase that has been registered in 10 years for these public officials.
In addition, the chief executive announced the purchase of 300 new technology patrols as part of the new equipment for the police force. Likewise, 1,435 members—who were assigned for administrative functions—will be assigned to the streets; personnel from other agencies will assume these duties thanks to the Single Employer Act.
"Colleagues of the police force, we are going to invest in you. I announce that we will be allocating the resources to grant an increase of $1,500 a year to all the agents of the Puerto Rico Police," informed the chief executive.
Rosselló also indicated that new agreements were established with the federal Government to fight crime and drug trafficking. Among these, initiatives from the Puerto Rico Department of Justice stand out, aimed at achieving greater convictions.
Official statistics show that, for most of Type I Crimes, a decrease was identified between 2017 and 2016, including murders.
However, as it is of public knowledge, the year has started with an alarming escalation of murders.
The governor explained that "there is no magic solution for such a complex problem. What we do have is the ability—in an intelligent, decisive, and firm way—to face crime, drug trafficking, and organized crime."
The chief executive announced, on the other hand, the presentation to the Legislative Assembly of the bill that will define the transformation of the electric power system of the Island.
"Today, I filed with the legislative bodies the bill that defines the procedures for this transformation, with the privatization and concession components defined. This process will be done in a transparent manner, with a model that has paid off; namely, the Public-Private Partnerships Act," the governor informed.
The law will authorize the allocation of resources from transactions to capitalize the retirement systems of the Puerto Rico Electric Power Authority (PREPA) employees, which are bankrupt. The goal is to stabilize the price of energy at 20 cents per kilowatt-hour and have a more reliable, efficient, and environmentally friendly system.
The chief executive informed that public employees of PREPA will not be dismissed.
The employees will be the ones who choose between moving to the private companies that invest in Puerto Rico or remaining in the Government under the Single Employer Act with their current benefits and salary.
On the other hand, after a year of great challenges in fiscal matters—during which the Rosselló Administration and the Legislative Assembly made it clear to the Financial Oversight and Management Board (FOMB) that it is not necessary to dismiss public employees—the governor stressed that the new Fiscal Plan for Puerto Rico establishes fewer contributions as a priority to incentivize the economy.
To refocus priorities, the number of agencies will be reduced to make the Government more efficient and less expensive. The savings for Fiscal Year 2023 will result in around $620 million annually.
The largest governmental transformation in the history of the Island implies a reduction of 118 agencies to about 35, an initiative that the governor had already announced in his first message.
On the other hand, Rosselló announced that the Department of Public Safety (DSP, for its Spanish acronym) already produced savings to the treasury of $28 million. The Office of the Commissioner of Municipal Affairs (OCAM, for its Spanish acronym) was also reorganized to join it to the structure of the Puerto Rico Office of Management and Budget (OGP, for its Spanish acronym).
Additionally, the seven reorganization plans—which include the Puerto Rico Department of Economic Development and Commerce (DDEC, for its Spanish acronym), the Puerto Rico Public Service Regulatory Board, the Puerto Rico Department of Labor, the Model Forest, the Board of Education, the Puerto Rico Department of Natural and Environmental Resources (DRNA, for its Spanish acronym), and the Puerto Rico Institute of Culture (ICP, for its Spanish acronym)—represent at the moment estimated savings of over $340 million for the next five years.
Regarding the health of the Island, the governor indicated that "the first step was taken to change the health structure to a new model, with only one region, where you can receive services throughout the Island and where you will be in control, not insurance companies."
The chief executive added that "to achieve this, we established greater controls in the detection of fraud in the transactions of the medical plans."
Rosselló said he achieved a federal allocation of nearly $5 billion to protect the lives of the Government healthcare plan. In addition, the regulation of the medicinal cannabis industry will ensure a health-promoting approach and will contribute to the economy.
Likewise, during his message, the governor acknowledged the emergency challenges faced during the aftermath of hurricanes Irma and Maria.
He stressed the importance for the Government to have a more effective and accurate process that the one carried out when accounting for deaths during the emergency.
Because of this, Rosselló recalled the collaboration established with George Washington University and the University of Puerto Rico to review the protocols, its results, to estimate loss of life in the strongest way, and to design a resilient public health process.
"That is what the road to recovery is about: recognizing and rectifying mistakes. That way we will correct what was done wrong, we will review what was done well, and we will prepare ourselves better for a new season of hurricanes, which is to begin in just three months," said the governor.
The governor also pointed out the need to route private sector aid better and faster to the most affected, by eliminating bureaucracy and unnecessary regulation in the local Government and requesting the same at the federal level.
On the other hand, the governor recognized the work and the great challenges that municipalities and their mayors are facing after the passage of the last two catastrophic hurricanes.
Due to this, in the new Fiscal Plan, additional funds were allocated to decrease the impact of the elimination of subsidies to the municipalities.
Rosselló also left space in his message to recall the largest allocation of federal funds ever made in the history of the Island—a result of the teamwork between the governor and resident commissioner Jenniffer González—despite the colonial discrimination that has been reflected in the process of allocation of these federal funds and in the United States tax reform.
"Among the funds corresponding to the Medicaid program, amounting to almost $5 billion and the $11 billion corresponding to the funds for community development—better known as the Community Development Block Grants (CDBG)—we obtained directly over $16 billion," said the chief executive.
These items include access to more than $47 billion in nutrition programs such as the Nutrition Assistance Program (PAN, for its Spanish acronym); as well as education programs to build better schools, to recover agriculture, to encourage small and medium businesses, and programs for veterans, among others.
On the other hand, Rosselló recalled that the new tax model will reduce Business to Business (B2B) every year until it is eliminated; will lower the Puerto Rico Sales and Use Tax (IVU, for its Spanish acronym) rate on processed foods from 11.5% to 7%; will give a credit to incentivize labor; and will gradually reduce the rates of individuals and corporations.
Additionally, to direct a workforce reform, the governor emphasized the removal of obstacles to the creation of businesses and incentives for the working class through the Earned Income Tax Credit. This equates the Island with more competitive places and other jurisdictions in the United States.
At the same time, about six new projects have been formalized for Roosevelt Roads, something never seen in these grounds, which will create 2,500 direct and indirect jobs. Furthermore, cruise tourism is expanding beyond the main Port of San Juan.
There are already six public-private alliances, which include the energy sector; ground transportation initiatives and seaports; transportation to the islands of Vieques and Culebra; parking lots and student residences, among others. This will achieve the creation of 25,000 jobs, with an estimated investment of $1.2 billion.
Rosselló also recalled that the Puerto Rico assets map was created and that the framework for a solidarity economy will be established. The law of financial support for the University of Puerto Rico was approved, as well as the amendments to acts 20, 22, and 73, so that these incentives have a greater effect on the economic development of the Island.
The Agricultural Development Plan has also been launched, aimed at doubling local production.
On the other hand, Rosselló recalled the value that women have in this Administration and that—as heads of half of the agencies of this Government—they manage 70% of the budget. Likewise, there was legislation for equal pay and to ensure that Government bidders promote equity for women.
According to the public policy of the governor, the status agenda will continue to be promoted through the Puerto Rico Statehood Commission, in order to achieve statehood.
The chief executive also recalled that the most vulnerable communities continue to be a priority for the Government.
Therefore, there will be a better public education model—which includes a salary increase of $1,500 per year for teachers, who had not received increases for the past 10 years—so that children benefit from an education of excellence, with the help of charter schools and educational vouchers.
To help the progress of these communities, parameters will be established, to have a work requirement for the nutrition and welfare programs, and thus incentivize the workforce.
The governor concluded by saying that "it is important that we protect and strengthen the programs for the most vulnerable sectors but that, likewise, we encourage those who can work, to seek a decent job and insert themselves into the formal economy," Rosselló concluded.
