Guánica mayor: Revenue shortfall on track to force spending cuts

Guánica Mayor Ismael Rodríguez Ramos

By The Star Staff

Guánica Mayor Ismael “Titi” Rodríguez Ramos expressed his concerns about the southwestern coastal municipality’s financial situation during an interview Thursday on the program “En Contacto,” which aired on Radio Leo 1170 in Ponce.

Rodríguez said the city’s current revenue is insufficient to cover operating expenses, which may force the municipality to make difficult decisions in the coming months.

“The municipality of Guánica currently receives about $30,000 in remittances each month. We are spending more than we are earning,” the mayor said. “If we continue at this pace in the coming months, unfortunately, we will have to make practical decisions regarding which services we can maintain and which will need to be suspended. Simply put, our revenue isn’t enough.”

Rodríguez noted that one of the factors worsening the municipality’s fiscal situation is Guánica’s lack of access to the Community Disaster Loan (CDL) program administered by the Federal Emergency Management Agency (FEMA).

“Most municipalities were able to access the CDL, but Guánica was not,” he stated, emphasizing that the disadvantage has impacted the town compared to others that received funds after natural disasters.

The mayor also pointed out that part of the municipal budget for the 2024-2025 fiscal year included revenue from construction taxes associated with a repair project at the Áurea E. Quiles Claudio High School. However, since this project has not come to fruition, the municipality lacks a vital source of income that had been factored into the budget estimates.

“Given this situation, we are already facing an operating deficit for the 2024-2025 fiscal year,” he remarked.

The mayor’s comments align with those of other municipal leaders who have raised concerns about the economic challenges they face and are calling on the central government for greater support to ensure the continuity of essential services for citizens.

More than half of the island’s 78 municipalities are operating with serious financial troubles and are trying to find ways to boost revenues.