Fiscal board authorizes $30 million disbursement to 40 towns
By The Star Staff
The Financial Oversight and Management Board has authorized the distribution of $30 million among 40 island municipalities to support the financing of essential services and programs, according to a letter.
The proceeds come from the municipal essential services fund, according to the letter sent by the oversight board’s executive director, Robert Mujica, to Office of Management and Budget (OMB) Executive Director Juan C. Blanco.
The commonwealth budget for the current fiscal year (FY) 2024 (which began July 1) allocates $30 million to support essential services and programs for municipalities in need of greater financial support, including funds to be deployed for funding critical community needs, the letter says.
The FY24 budget resolution provides that these funds be directly distributed to municipalities by the oversight board, subject to the board’s review and approval.
Municipalities provide support for public works, social affairs, recreation and culture, health, environmental protection, economic development and public order and safety. In recognition of the important value provided by municipalities, the oversight board authorized and funded the establishment of several new appropriations and investments in recent years, the letter reads.
The board added that it understands the greater challenges some municipalities face, which is why on Nov. 2, the board and the OMB agreed on the specific distribution of the $30 million to fund critical programs and services in 40 island towns. Accordingly, pursuant to the FY24 resolution, the oversight board has authorized and approved the distribution as agreed to by both parties, the fiscal control entity said.