Fiscal Board imposes its FY2018 budget with additional cuts

Hours before the next fiscal year began, the Federal Financial Oversight Board unanimously approved a budget with additional cuts and left open the possibility of reducing public employees’ workweek in September, El Vocero reported.

The governor’s representative to the Board, Elías Sánchez, said that such impositions contrary to the will of the elected government are common in a colony. The Executive made changes to line items amended by the Legislature to meet Board expectations, but the entity approved its own budget — without needing the governor’s signature.

In concert with the Board, the Executive revoked elimination of a $78 million reserve; a $50 million reserve was reinstated and an additional $25 million was cut from special appropriations. From the legislative process only a $24 million increase to agencies such as Justice and OEG was accepted. After those amendments, the General Fund stands at $9.56 billion — the same figure as the Legislature’s.

The Board also approved budgets for GDB, PREPA, PRASA and HTA, subject to prospective amendments of their fiscal plans. Ana Matosantos confirmed the government met the $200 million liquidity reserve for July — avoiding for now workweek reduction and elimination of Christmas bonuses — but not the September downsizing plan to cut $400 million in spending; half of those controls lacked data, she said. José Carrión argued that if unmet, “differences will be resolved by a court.”

Jaresko demanded a $13 million cut to the legislative branch and a uniform 13.3% cut in special appropriations, including the ICP. Ernst & Young advisers noted that much of the consolidated total goes to education (~$3.9 billion), security (~$2 billion) and health (~$4.6 billion), plus pensions. Certified is not disbursed.