Friday, August 12, 2022

FOMB Raises Issues with Funding Measures

By on July 14, 2022

Says Law, Bills Lack Sources of Revenue, Violate Promesa

Puerto Rico’s Financial Oversight and Management Board (FOMB) has questioned a series of laws and proposed legislation to increase salaries for nurses and other public workers and provide a student loan tax deduction, saying the measures lack a source of revenue and violate the commonwealth’s fiscal plan.

In a July 6 letter to Nelson J. Pérez Méndez, deputy executive director of the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf by its Spanish acronym), Jaime A. El Koury, the oversight board’s general counsel, said that Act 136 of 2020— which increases the base salary for public sector nurses and mandates that all eligible nursing personnel be compensated in accordance with the new salary scale established in the law by July 1—lacks a funding source.

El Koury states in the letter that the source of funds for such salary increases, the commonwealth Uniform Remuneration Plan, will not be available until Jan. 1, resulting in a six-month funding gap.

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