Puerto Rico To Make Budget Cuts
SAN JUAN, Puerto Rico (AP) — New austerity measures are looming for storm-battered Puerto Rico after legislators refused to change labor laws as ordered by a federal control board overseeing the U.S. territory’s finances amid an 11-year recession.
The board said Friday that it will eliminate a $25 million scholarship fund for the island’s largest public university, as well as a $50 million annual fund for municipalities. In addition, the board said it will scrap an annual Christmas bonus for all government employees starting next fiscal year.
Gov. Ricardo Rossello did not immediately respond to a request for comment.
The board also said it would implement its own budget for Puerto Rico if legislators do not submit a proposal by Saturday that is consistent with a recently approved fiscal plan.