Governor Rosselló encourages the Financial Oversight and Management Board to reflect on the impact of the certified Fiscal Plan

(April 19, 2018 - La Fortaleza, San Juan) Governor of Puerto Rico Ricardo Rosselló called today for the Financial Oversight and Management Board (FOMB) to reflect on the Fiscal Plan that they certified, which considers matters of public policy that the federal entity does not have the power to execute.

Likewise, Rosselló highlighted the lack of consensus among the members of the Board in the approval of the Fiscal Plan—after Ana Matosantos voted against the proposal of the Board—and the concern expressed by several of the members that voted in favor when certifying the Fiscal Plan.

The chief executive reiterated that Section 205 of the federal PROMESA Act establishes that public policy is dictated by the Government of Puerto Rico and that, on the other hand, the Board is there to establish the necessary fiscal adjustments.

“I invite the Board to reflect and to understand that we will not give way to the aspects of their Plan that pertain to public policy and that affect the People. I urge the members of the Board to work together and look for an executable and consensual alternative. Only then will we do the best for Puerto Rico," said the governor.

In relation to the proposal of the Board to reduce vacation and sick leave for the private sector and eliminate the Christmas Bonus for public and private employees, Rosselló reiterated that those are actions that must be considered by the Legislative Assembly, that they have no support and that, therefore, a bill will not be submitted to that end.

The governor also indicated that the normalization of benefits to public employees has already been addressed through Act 26 and that, therefore, cutting access to health services and eliminating the Christmas Bonus are initiatives that will not be viable.

Regarding the reduction proposed by the Board to pensions, the governor insisted that the responsibility of the Government of Puerto Rico is to protect the most vulnerable.

“We understand that it is a proprietary right, which cannot be done solely by the Adjustment Plan. The Board sees it as if the pensioner were a non-secured credit. We do not see it that way; neither the local nor the federal law sees it that way. Therefore, we understand that, from the perspective of public policy as well as from a legal perspective, we are on the right side of this argument," explained the governor.

Similarly, the chief executive explained the actions taken by his Administration, among which he highlighted the Energy Reform, the Educational Reform, and the New Tax Model, among others, which will ensure fiscal recovery and contribute to improving the quality of life in Puerto Rico.

“We must also emphasize the parts in which we agree with and that will be worked on. Two of them are: The Earned Income Tax Credit, to encourage citizens to enter the formal workforce; and, likewise, the work requirements for nutritional assistance programs," added the chief executive.