By The Star Staff
Financial Oversight and Management Board Executive Director Robert Mujica says two of the bills listed by Gov. Pedro Pierluisi Urrutia in his call for an extraordinary session that begins today do not have to be passed urgently and will have a significant fiscal impact on the 2025 budget.
“The agenda for the extraordinary session called for (this) week includes two bills that significantly impact the 2025 budget,” Mujica said. “Due to its fiscal impact, it would be more appropriate to include this legislation as part of a broader discussion on the budget and the tax system.”
He pointed out that in June alone, the island Legislature added over $1 billion in spending to the budget after the governor and the oversight board agreed on a fiscally responsible budget. Non-recurring federal funds largely impact Puerto Rico’s economic condition and have significant risks since the budget was enacted in July; this has not changed, Mujica said.
“The government’s surplus in fiscal year 2024 was significantly lower than in fiscal year 2023, and we see signs that the economy has begun a period of slowdown,” the oversight board official said. “Likewise, there is uncertainty about the future of Medicaid and other federal funds.”
“The Government must maintain disciplined spending to prevent Puerto Rico from falling into deficit and reversing the progress made to achieve fiscal responsibility,” Mujica added.
Late last week Pierluisi called the Legislature to a special session that opens today with a constitutional limit of 20 days.
The document issued by the governor details that the measures include proposals to provide tax relief, accelerate the recovery of critical infrastructure, address municipal needs, and make necessary technical amendments to recently approved laws.
The 10 measures the Legislature will analyze are:
A-107 – To allocate $250 million to the Treasury Department to finance the costs related to providing tax relief to certain individuals for tax year 2024. This is a measure similar to the refundable incentive already given by the government in 2024 (for tax year 2023).
A-108 – Technical amendments to the Puerto Rico Incentives Code, in order to establish a new incentive that encourages the development of housing in the urban centers of the municipalities.
A-109 – Amendments to the “Puerto Rico Housing Finance Authority Act” and amendments to the fourth paragraph of Article 2 of Act No. 17 of Sept. 12, 1948, as amended, to separate the Puerto Rico Housing Finance Authority (AFV by its initials in Spanish) from its status as a subsidiary of the Government Development Bank for Puerto Rico (GDB). “This is a technical matter but one that cannot be postponed, since the GDB has disappeared and the AFV is undergoing a restructuring process, making legal changes necessary,” the document says.
Senate Bill 1497 – Technical amendments to Act 293-2004 “Permanent Fund for Environmental Preservation of Culebra and Vieques Act.” This amendment seeks to clarify that the funds collected in each municipality will be explicitly used to preserve that respective municipality.
House Bill 2197 – Technical amendments to the Political Code of 1902 to reinstate the language for how laws are numbered and cited.
House Resolution 649 – To adopt the Reuse Plan for the former Roosevelt Roads Naval Station of 2004 and updated in 2010 as the Master Development Plan for the naval station lands.
House Resolution 24 – To order the Committee for the Evaluation and Disposition of Real Property, created by Law 26-2017, as amended, known as the “Fiscal Plan Compliance Law,” to evaluate, by the law, that Luis Muñoz Rivera Park in Puerta de Tierra be transferred to the Municipality of San Juan.
House Bill 2199 – To amend Section 4 of Law 37-2024 to clarify the provisions on the validity of said law.
House Bill 1731 - To declare the public policy of the Government of Puerto Rico regarding the agricultural development of the lands included within the Bucarabones Valley (Mucarabones) in the Municipality of Toa Alta, and declare them an agricultural reserve.
Senate Bill 1321 – Amendments to the “Internal Revenue Code” to harmonize it with Double Taxation Agreements (DTA) signed by the United States.
New Progressive Party (NPP) Sen. Thomas Rivera Schatz said the call does not contain any appointments since Governor-elect Jenniffer González Colón has expressed opposition to the call.
He said the NPP delegation in the Senate will attend, fulfilling its ministerial duty, and will deal with the legislation responsibly.
“The tolerance and indifference that some have shown with the disastrous scrutiny, especially with regard to the legislative ballot, [...] will not affect the judgment of each senator to vote and participate according to his or her exclusive criteria,” he said.
Comments