UPR’s budget shows a deficiency of at least $60 million

By The Star Staff

The University of Puerto Rico’s budget for Fiscal year 2026, which begins July 1, is unbalanced, according to the Financial Oversight and Management Board.

Among other issues, the budget assumes the availability of incremental funds beyond the established FY2026 revenue target to cover operating expenditures and achieve a balanced budget. Additionally, the Proposed FY2026 UPR Budget lacks supporting documentation detailing the data, methodology, and assumptions used.

The Oversight Board’s notification to UPR contradicts remarks made by Gov. Jenniffer Gonzalez last week to the effect that the commonwealth budget was balanced.

The UPR budget is currently being evaluated by the Legislative Assembly and reflects an allocation of $60 million one-time funding to support UPR’s operations, in addition to the base funding provided in the FY2026 UPR Revenue Forecast.

If the FY2026 Commonwealth Budget is not certified with the additional $60 million, UPR must revise its Proposed FY2026 Budget and adjust expenditure accordingly.

The Certified 2024 Commonwealth Fiscal Plan is consistent with Act 53-2021, which requires total appropriation to UPR of $500 million annually from FY2023 and FY2027. However, the FY2026 Commonwealth Budget includes an additional $60 million non-recurring funding to support UPR’s operations.

The budget contains $102 million incremental one-time funding for UPR Fiscal Plan initiatives, but the Oversight Board said only $172 million in available funding remains for UPR – appropriated during FY2023, FY2024, and FY2025 – to support such investments.

The budget contains an item for payroll and related costs, excluding Medical Plan, showing a $4.2 million increase and a $3.3 million increase in medical costs without supporting information, the Oversight Board said.

The Board gave UPR until June 13 to correct the deficiencies.