top of page
  • Writer's pictureThe San Juan Daily Star

Fiscal board warns about financial impact of several laws

By The Star Staff

The Financial Oversight and Management Board has expressed concern about the significant impact that several recently approved laws could have on the budget of the island government.

In a letter sent late last week to Gov. Pedro Pierluisi Urrutia, Speaker of the Puerto Rico House of Representatives Rafael “Tatito” Hernández Montañez, and Senate President José Luis Dalmau Santiago, Robert Mujica Jr., the executive director of the oversight board, warned of the need for review and adjustments to maintain fiscal stability.

“The Board has learned that, on June 25, 2024, the Legislature overrode the Governor’s veto of Senate Bill 644 (PS 644) and approved a considerable number of other bills that could have a significant impact on the spending of the Commonwealth, budget balance and, ultimately, the financial recovery of Puerto Rico,” Mujica said in a written statement.

The oversight board estimates that the aggregate cost of the legislation could amount to some $852 million for fiscal year 2025 and at least $6 billion over the next 20 years. Among the approved measures is Senate Bill (SB) 644, which seeks to mitigate the non-operational risk of cooperatives by disbursing public funds through the Public Corporation for the Supervision and Insurance of Cooperatives (COSSEC by its acronym in Spanish). “SB 644 is inconsistent with the 2023 Fiscal Plan for COSSEC and the Fiscal Plan of the Commonwealth of Puerto Rico, and violates PROMESA [the Puerto Rico Oversight, Management and Economic Stability Act].”

39 views0 comments

Recent Posts

See All

COFINA settles longstanding dispute with IRS

By The Star Staff The Puerto Rico Sales Tax Financing Corporation (COFINA in Spanish) has settled a $12.6 million claim with the U.S. Internal Revenue Service (IRS), ending a dispute that began in 201


bottom of page