Gov’t misses budget deadline imposed by fiscal board, seeks extension.

By THE STAR STAFF

The communications office of the Financial Oversight and Management Board for Puerto Rico reported Monday that the island government failed to submit its required budget report on May 1 and instead requested an extension.

Rep. Eddie Charbonier Chinea, chairman of the House Treasury Committee, responded in a radio interview, stating that the oversight oard must issue a public letter explaining why the executive branch failed to meet the established deadline. He said the executive branch, which is responsible for enforcing and complying with the law, should clarify why the budget submission was delayed after previously stating that everything was in order.

Charbonier also questioned whether the executive branch complied with Section 204 of the law related to economic and tax relief measures, noting that residents are still waiting for progress. He emphasized that while the Legislature met its responsibilities, further action from the executive branch is necessary.

Separately, the oversight board warned last month that the government’s proposed fiscal year 2027 budget, although aligned with the certified fiscal plan in overall dollar amounts, remains noncompliant. The board said the budget was prepared using accounting standards that differ from the modified accrual basis agreed upon for the General Fund.

In an April 24 letter to Gov. Jenniffer González Colón, the oversight board’s executive director, Robert F. Mujica Jr., outlined weeks of discussions with the administration regarding funding priorities, agency risks and supporting documentation.

Under the Puerto Rico Oversight, Management and Economic Stability Act, commonly known as PROMESA, the island government is required to submit a proposed commonwealth budget for board review and certification. According to the letter, the government initially submitted its fiscal year 2027 budget proposal on March 6 and provided revisions, including an updated version on April 21.

Although the revised proposal met General Fund targets, the oversight board said it did not allocate sufficient resources to cover certain operating risks. It also warned that some proposed reductions could threaten the continuity of essential services, including public safety, education, health and social programs.

Despite further negotiations and accepted reductions, the oversight board maintained that the budget remains noncompliant because it was not developed using modified accrual accounting standards.

The board has set June 30 as the target date to certify the fiscal year 2027 commonwealth budget.