Citing new data, oversight board sets schedule for latest updated fiscal plan
By The Star Staff
The Financial Oversight and Management Board for Puerto Rico has launched a schedule for an updated fiscal plan for the commonwealth citing new information that has to be taken into account.
The fiscal plan is the document that analyzes the government and establishes steps for reaching financial stability. The oversight board’s actions come six months after it had certified a commonwealth fiscal plan in April. The move also comes barely two months before the start of hearings to confirm the debt adjustment plan, which must agree with the fiscal plan.
A letter sent by the oversight board’s executive director, Natalie Jaresko, to Gov. Pedro Pierluisi Urrutia, Senate President José Luis Dalmau and House Speaker Rafael Hernández Montañez said that this time around the board will not revise all of the plan.
“The Oversight Board is initiating this process for revising the certified fiscal plan in order to incorporate new information available regarding federal funding for Puerto Rico, the broader macroeconomic environment, and certain expenditure items.
The revisions to the Certified Fiscal Plan will be limited in scope and will not revisit the broad range of forecasts and assumptions included in the Certified Fiscal Plan, which was certified in April 2021,” Jaresko said.
The plan needs to be revised for demographic updates and inflation based on U.S. Census projections. It also must take into account expenditures to reflect the cost to the commonwealth of absorbing transferring Puerto Rico Electric Power Authority workers to other agencies after the utility’s transmission and distribution system was put under private management. It also must be updated to consider certain federal funding.
The schedule for the process of developing, submitting, approving and certifying an updated fiscal plan for the commonwealth is as follows: Sept. 27 -- the governor will submit proposed revisions to the certified fiscal plan to the oversight board; Oct. 4 -- if necessary, the oversight board will send the governor a notice of violation; Oct. 8 -- the governor will submit revised proposed revisions to the certified fiscal plan to the oversight board; and Oct. 20 -- the oversight board will expect to certify a revised fiscal plan.