FY 2026 budget, certified by fiscal board, can’t yet be counted as balanced

The Financial Oversight and Management Board emphasized that the revised fiscal year 2026 budget is separate from the fiscal year 2027 budget, which it had previously certified.

By THE STAR STAFF

Contrary to Gov. Jenniffer González Colón’s characterization, the commonwealth budget that took effect Wednesday was certified by the Financial Oversight and Management Board, not approved by the Puerto Rico government.

As a result, the government cannot yet count the budget as one of the four consecutive balanced budgets required for the oversight board’s termination under the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA).

The board said this week that it had certified a revised Commonwealth of Puerto Rico budget for fiscal year 2026, which ended Tuesday, June 30.

According to the oversight board, the revision amended the previously certified fiscal year 2026 budget to account for unbudgeted revenues as part of the normal year-end closeout process. The board emphasized that the revised fiscal year 2026 budget is separate from the fiscal year 2027 budget, which it had previously certified.

The oversight board said it developed the revised fiscal year 2026 budget because the governor and the Legislative Assembly did not officially submit a revised budget for certification within the timeline communicated to the government under Section 202(a) of PROMESA.

“In fact, as of the evening of June 30, 2026, the close of the fiscal year, there was no agreement on amendments to the revised fiscal year 2026 budget,” the oversight board said in a statement. “Therefore, the Oversight Board certified a revised fiscal year 2026 budget that is compliant with the Fiscal Plan for Puerto Rico, as is the final budget for fiscal year 2026.”

The dispute, the board said, was not over the overall level of government spending. Rather, the governor and the Legislative Assembly failed to reach consensus on certain issues, preventing them from moving forward with a jointly developed revised fiscal year 2026 budget.

The oversight board added that the revised budget it certified could still qualify as compliant with the conditions for the board’s termination under Section 209 of PROMESA, provided that the commonwealth’s independent financial audit determines that fiscal year 2026 was balanced under modified accrual accounting standards, as required by PROMESA.

Office of Management and Budget Director Orlando C. Rivera Berríos noted meanwhile that the board’s Wednesday letter referred to the fiscal year 2025-2026 budget, which ended June 30, and not to the fiscal year 2026-2027 budget, which took effect July 1.

“It is important that the public receives the information in its proper context,” Rivera Berríos said. “The [oversight board’s] determination refers to the budget that ended yesterday and should not be interpreted as an evaluation or certification of the budget for the new fiscal year.”

Rivera Berríos said the two budgets are part of separate processes and warned that conflating them could create a misleading impression of the current budget’s status.

He also said both budgets were prepared responsibly, consistent with the administration’s fiscal discipline policy and in compliance with applicable legal provisions.

“At the Office of Management and Budget, we reaffirm our commitment to continuing to promote fiscal transparency and the responsible disclosure of budget information, to guarantee that the people of Puerto Rico have access to accurate, complete, and properly contextualized data,” Rivera Berríos said.