Public safety, health & education anchor $13.18 billion General Fund proposal.

Gov. Jenniffer González Colón

By THE STAR STAFF

Puerto Rico’s proposed consolidated budget for fiscal year (FY) 2027 totals $33.57 billion, including $13.18 billion from the General Fund, with the largest allocations concentrated in public safety, health and education, according to documents filed by the executive branch and House Joint Resolution A 117.

The spending plan, developed jointly with the Financial Oversight and Management Board under the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), comes in roughly $312 million below certified revenue projections, a gap the administration of Gov. Jenniffer González Colón describes as evidence of fiscal discipline.

The governor said the proposal reflects “a new vision of fiscal planning focused on results, budgetary discipline, and the real priorities of our people,” emphasizing that the budget incorporates strengthened controls, reserves, and modified‑accrual accounting standards to improve transparency.

Public safety remains one of the most heavily funded areas. The Puerto Rico Police Bureau alone receives $1.07 billion, accounting for nearly 87% of all appropriations within the Department of Public Safety. More than $741 million is earmarked for payroll, including $504 million in salaries and nearly $96 million in overtime, along with $210.9 million for PayGo pension obligations and over $45 million for utilities and facility costs.

The budget also sets aside $27.8 million for police cadet recruitment and $20 million in a special allocation tied to police reform and operational restructuring.

The other public safety agencies receive comparatively smaller sums, including $82.5 million for the Firefighters Bureau, $27 million for the Emergency Medical Corps, $7.19 million for Emergency Management, $5.8 million for the Special Investigations Bureau, and $33.9 million for shared services.

Education and health also command major shares of General Fund spending. The Department of Education receives $2.9 billion, nearly $1 billion of which is dedicated to payroll.

The University of Puerto Rico is assigned $500 million, a figure well below the $782.4 million budget approved by the public university system’s governing board for fiscal 2025, and comes as the institution recently ended a strike partly driven by concerns over budget constraints.

Health spending is anchored by a $1.03 billion appropriation to the Health Insurance Administration, including $1.01 billion to cover health insurance premiums under Law 72‑1993. The Department of Health receives $514.2 million for salaries, utilities, Medicaid matching funds, professional services, and statutory programs ranging from autism services and pediatric oncology to emergency room operations and catastrophic illness support. Additional targeted funding includes $25.8 million for the University Pediatric Hospital, $56.8 million for the University Hospital (Adults), $14.3 million for HURRA Bayamón, $65.8 million for the Intellectual Disability Program, and $44.7 million for payroll and operations across other health programs.

The administration noted that the FY 2027 budget already incorporates a projected 5% increase in Medicaid costs based on actuarial and fiscal analyses. It also pointed to existing reserves to address potential Medicaid‑related risks, including some $102 million from FY 2026 and $235 million from FY 2025.

In the judicial and legislative branches, the courts receive $402 million, while the Legislature is allocated $127.5 million.

The governor highlighted several priority initiatives embedded in the spending plan, including $44 million to update police rank‑and‑file salary scales, $15.6 million for security equipment, $20 million to fund salary increases for correctional officers, $20 million to strengthen the Home Care Program, $25.5 million for road repaving projects, $15 million to modernize the electoral scrutiny system, $23.7 million to bolster Medicaid and MMIS technology, and $11.1 million to guarantee maritime transportation services to Vieques and Culebra. The budget also includes a $103.9 million reserve to mitigate operational risks.

González Colón said the government is “acting with planning and anticipation,” identifying risks early and protecting essential services while maintaining compliance with PROMESA’s fiscal and accounting requirements.