Commonwealth owes $29.4 million in PayGo retirement payments as of September
By The Star Staff
The Commonwealth of Puerto Rico owes $29.4 million as of September in PayGo retirement payments corresponding to fiscal year (FY) 2022, an unaudited report from the Fiscal Agency and Financial Advisory Authority (AAFAF by its Spanish initials) revealed.
The pension system is slated to undergo a restructuring as the bankruptcy court is expected to approve a debt adjustment plan for $33 billion in central government debt.
Of that total, government entities owe $27.3 million of debt, whereas municipalities amassed about $2.2 million in outstanding PayGo payments at the close of the first three months of FY 2022, which began in July.
PayGo invoices for the period totaled $631.7 million, but collections were $602.2 million, the report showed, which means the system is still in deficit.
The commonwealth’s total PayGo debt amounted to nearly $296.9 million from FY 2018 through September, with government entities and municipalities owing $140.5 million and $156.4 million, respectively, the item indicated.
The AAFAF also published a liquidity report for October on its website related to 15 component units, including the actual operating liquidity for each entity as compared to the year-to-date figures in the liquidity plan.
The Puerto Rico Ports Authority saw October liquidity increase to $124.7 million from $123 million.
“Cruise operations continue to be impacted by COVID-19 and its effects on the cruise line industry, while regional airports are performing in line with the liquidity plan,” the document noted.
In FY 2022, payroll and related costs are expected to be at least 40% higher than in FY 2021 given the addition of some 154 employees from the Puerto Rico Electric Power Authority (PREPA).
The Puerto Rico Public Buildings Authority’s October liquidity decreased to $124.9 million from $144.1 million due to insurance payments scheduled for early in the fiscal year and due to payroll. Payroll and related costs between July and October amounted to $25.2 million, up 48% over the same four-month period due to the addition of PREPA employees.
The Puerto Rico Convention Center District Authority’s cash balance increased to $36.6 million from $13.8 million due to $22.5 million in unanticipated federal funding revenue.
The report also included financial information related to the AAFAF, the Puerto Rico Integrated Transit Authority, the Medical Services Administration, the Puerto Rico Industrial Development Co., the Department of Economic Development and Commerce, the State Insurance Fund Corp., the Health Insurance Administration, the Cardiovascular Center for Puerto Rico and the Caribbean, the Housing Finance Authority, the Puerto Rico Tourism Co., the Puerto Rico Administration for the Development of Agricultural Enterprises, and the Automobile Accident Compensation Administration.