Fiscal board imposes budgets on UPR, COSSEC for FY 2027

By THE STAR STAFF

The Financial Oversight and Management Board for Puerto Rico has taken significant action on two major public entities, imposing its own fiscal year (FY) 2027 budgets on both the University of Puerto Rico (UPR) and the Public Corporation for the Supervision and Insurance of Cooperatives (COSSEC by its acronym in Spanish) after determining that the government’s proposed spending plans failed to comply with the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA).

In a letter dated June 29 to Gov. Jenniffer González Colón, the oversight board rejected the government’s and UPR’s proposed FY2027 budget, concluding that the plan violated PROMESA and the UPR’s certified fiscal plan. The board instead certified its own budget, projecting $1.2549 billion in revenues and allocating $177.1 million for pension payments — a recurring point of tension between UPR and the board. It warned that the UPR’s pension funding shortfalls have persisted for more than a decade and urged the university to adopt operational and financial reforms to ensure long‑term sustainability.

Separately, the board also imposed its own FY 2027 budget on COSSEC after determining that the government and the agency failed to submit a compliant spending plan. Under PROMESA Sections 202(c)(2) and 202(e)(4), the board developed and certified the FY 2027 COSSEC budget, which is now deemed approved by the governor and will take effect today, July 1.

The certified COSSEC budget totals $13.3 million in expenses, including $8.3 million in payroll and $3.9 million in operating costs. It also includes strict controls on reprogramming, reporting, and the use of prior‑year appropriations. The board emphasized that COSSEC must comply with all reporting requirements in its fiscal plan and that any reprogramming of funds will require prior approval.

The oversight board’s actions underscore its continued oversight of Puerto Rico’s public corporations and its insistence on fiscal discipline across government entities.