Board greenlights $1 billion of the budget for the emergency

On September 26, 2017, Primera Hora reported that the Financial Oversight Board (JSF) authorized Governor Ricardo Rosselló Nevares to redirect up to $1 billion of the current budget to response and emergency tasks after Hurricane María.

In a letter from José B. Carrión, JSF chair, the entity said it would join efforts with the government to seek FEMA or other federal agency aid. Members authorized the reallocation at Rosselló’s request: the government may use the emergency fund and the budgetary reserve the Board ordered as part of fiscal balance. Carrión added readiness to approve any other necessary emergency line.

María struck the prior Wednesday leaving ~3.2 million residents without electricity, water and communications. The blow came a year after PROMESA/JSF and about four months after the entity asked a court for a Title III–style debt adjustment. Without Board authorization, the government has no discretion to move public funds. Trump had already declared Puerto Rico a disaster zone. The government then confirmed 16 deaths.

In parallel, after AAFAF’s request and creditor motions, Judge Laura Taylor Swain validated the extension of deadlines in the Title III cases and asked the JSF for a report to decide whether to postpone or move to New York the October 4 general hearing.

Budgetary authorization is not a federal disbursement or theft. A disaster declaration does not set the amount Congress will approve.