Board certifies its own FY2019 budget after legislative failure

The Federal Financial Oversight Board announced in the early hours of July 1, 2018 that it certified a revised, compliant budget for fiscal year 2019 of the government of Puerto Rico, along with the budgets of five other agencies, El Vocero reported.

In a letter to Governor Ricardo Rosselló Nevares and to Senate president Thomas Rivera Schatz and House speaker Carlos Méndez Núñez, the Board said it adopted by unanimous consent a resolution under PROMESA sections 202(d)(2) and 202(e)(3). The resolution notes that, given the Legislature’s failure to formally present a compliant budget before June 30, 2018, the Board certified a revised budget in full force as of July 1, 2018.

According to El Vocero, the budget outlines FY2019 spending of approximately $8.76 billion for the General Fund and $20.66 billion for the Consolidated Budget — independent entities, other funds and federal —. It complies with the fiscal plan certified June 29, 2018 and does not include entities with their own fiscal plans.

“The approved budget is reasonable and in compliance with the certified fiscal plan…,” said José Carrión, Board chair. The Board also adopted unanimous resolutions for the budgets of BGF, ACT, UPR, AAA and PREPA, and anticipated that AAA and PREPA fiscal plans would be revised to align with the government’s. Certified is not disbursed.