Puerto Rico budget for fiscal 2019 needs to be $1 billion less than current one
SAN JUAN – The Financial Oversight and Management Board for Puerto Rico has estimated the island’s general fund revenue for fiscal year 2019, which begins in July, at $8.5 billion, thus the budget for that period should not surpass the amount for it to be balanced.
That is about $1 billion less than the current fiscal year’s $9.5 billion budget.
The information is contained in a letter the fiscal oversight board sent to Gov. Ricardo Rosselló, in which the panel asks his office, La Fortaleza, to provide by May 4 the proposed budgets and supporting data such as key performance indicators, as well as to include a detailed reconciliation report between the budget and the newly certified fiscal plan.
On Thursday, the Fiscal Agency and Financial Advisory Authority (Aafaf by its Spanish acronym) requested additional time to present the budgets to the board, which has said the budget has to be approved by June 29, the end of the fiscal year. However, according to the Promesa law, if the governor, the legislature and the board certify that a jointly developed budget reflects a consensus among them by June 29, the budget would serve for fiscal 2019.
In addition to the $8.5 billion in general fund revenue, the fiscal board has projected $3 billion in other revenues, including $352 million in third-party Health Insurance Administration (ASES by its Spanish acronym) receipts, but does not include revenue from the Puerto Rico Sales Tax Financing Corp. (Cofina by its Spanish acronym). The board also includes $9.3 billion in federal funds.
The total expected revenue is of about $20 billion, which means the consolidated budget should not be larger than that amount.