Fiscal Board sets FY2027 budget timeline, projects $13b in general fund revenues

By THE STR STAFF

The Financial Oversight and Management Board (FOMB) has formally delivered its budget schedule and financial parameters for Fiscal Year 2027 to Gov. Jenniffer González Colón and legislative leaders, projecting $13.181 billion in General Fund revenues for the upcoming fiscal cycle.

In a letter dated Feb. 13, 2026, the Board also estimated $5.4 billion in revenues for Other Funds, figures submitted pursuant to Section 202(b) of PROMESA. The revenue projections set the foundation for the government’s budget development and are intended to keep spending aligned with the Certified Fiscal Plan.

The Board outlined a detailed timetable the government must follow leading up to the certification of the FY2027 Commonwealth Budget on or before June 30. Under the schedule:

* March 6, 2026 – The governor must submit a proposed FY2027 budget along with documentation explaining any variances from targets and a certification from the Chief Financial Officer confirming that the budget was prepared using modified accrual standards.

* April 17, 2026 – The Board may issue a notice of violation if the proposal fails to comply with the Fiscal Plan.

* May 1, 2026 – Deadline for the governor to submit a revised proposal, if needed.

* May 8, 2026 – The Board will submit a compliant version of the budget to the governor and Legislature, if necessary.

* June 5, 2026 – The Legislature must submit its adopted budget.

* June 15 and June 24, 2026 – The Board may issue notices of violation and receive revised legislative budgets as required.

The Board also requested additional information from the government. Agencies must provide the data listed in Appendix A of the letter by Feb. 27, 2026, and the remaining documentation in Appendix B when the governor submits the proposed budget.

The letter notes that Puerto Rico’s Office of Management and Budget sent its own preliminary FY2027 targets to agencies and public corporations last November. Those internal targets included cuts to select agencies aimed at generating savings and aligning budgets with the administration’s policy priorities.

However, the Board clarified that the expenditure limits it is imposing for FY2027 reflect more recent developments, including payroll adjustments tied to the Civil Service Reform and appropriations consistent with the FY2026 certified budget. Capital expenditures and PayGo pension contributions must be assigned separately in the governor’s submission.

The Board said it looks forward to working with the González Colón administration and the Legislature to meet PROMESA’s requirements and ensure fiscal stability for Puerto Rico.