Another loan to balance the budget

On April 13, 2011, Primera Hora reported that the $9,260 million General Fund budget Governor Luis Fortuño presented for fiscal year 2011-2012 would be “balanced” with another $610 million loan, payable with sales and use tax (IVU) collections.

Projected revenues were estimated at $8,650 million; the gap would be covered with a bond issue by the Puerto Rico Sales Tax Financing Corporation (Cofina). That fund, fed by the IVU, then carried $14,200 million in debt.

The proposed budget was $127 million higher than the current fiscal year’s ($9,133 million), which itself had been balanced with $1,000 million from the Stabilization Fund — also Cofina debt. Fortuño said the $610 million shortfall was the lowest in recent years and contrasted it with the $3,300 million he said he found on taking office in 2009. He claimed to have cut the deficit from 43% to 7% and projected eliminating it the following year.

He announced increases for Police ($29 million), Justice ($10 million), Corrections ($6.9 million), Juvenile Affairs ($9 million) and Mi Salud; a contribution to AAA to “avoid” a $183 million rate hike (that year’s allotment for that purpose was $105 million); and that Education would receive more local contributions replacing federal funds, with a consolidated budget of $3,800 million — lower than the prior year.

Cofina issue / budget balance ≠ works disbursement. Reported debt ≠ adjudicated theft.

Source: Primera Hora. https://www.primerahora.com/noticias/gobierno-politica/notas/otro-prestamo-para-el-cuadre-del-presupuesto/