Economic

and Fiscal Adjustment Plan Workstreams, Responsibilities & Update

Fortaleza Lead

Agency
Representative

Advisor

A. Febres;
L. Lopez

M. Medina

V.Thomas
(DTRH)

Fiddler

i. Reduce paid vacation requirements to mainland levels (15 days) for both public and private sector employees

A. Febres;
L. Lopez

M. Medina

V.Thomas

Fiddler

[]

ii.Eliminate mandatory end-of-year (and other) bonuses

A. Febres;
L. Lopez

M. Medina

V.Thomas

Fiddler

[]

iii. Adjust requirements for proving just cause in layoffs to mainland levels

A. Febres;
L. Lopez

M. Medina

V.Thomas

Fiddler

[]

iv. Extend probationary period for new employees to 2 years

A. Febres;
L. Lopez

M. Medina

V.Thomas

Fiddler

[]

v. Relax labor laws for youth/new entrants for first few years

A. Febres;
L. Lopez

M. Medina

V.Thomas

Fiddler

[]

vi. Subject to constitutional constraints (TDB), calculate overtime based on excess of 40-hour workweek

A. Febres;
L. Lopez

M. Medina

V.Thomas

Fiddler

[]

G. Gil

A.Ramos

C.Castro

i. Restructure PREPAs balance sheet to stabilize short-term electricity rates

G. Gil

A.Ramos

C.Castro

ii.Open up generation to private competition to reduce electricity rates over time

G. Gil

A.Ramos

C.Castro

F. Lugo

F.Dox

J.Flores
(Justice)

I. Structural Reform

A. Reduce Labor Cost

Minority
Legislation?
Representativ (Yes / No /
e
Maybe)

GDB Lead

x Initiative

B. Reduce Energy Cost

C. Reduce Shipping Costs

V2A Coordinator

Alix; Cleary;
Millstein;
PMA; GS
Alix; Cleary;
Millstein;
PMA; GS
Alix; Cleary;
Millstein;
PMA; GS

V.Feliciano

--

-Yes
Yes

--

Economic and Fiscal Adjustment Plan Workstreams, Responsibilities & Update

x Initiative

V2A Coordinator

i. Encourage repeal of Jones Act

D. Reduce Ground Transportation Costs

i. Liberalize competition and pricing

E. Welfare Reform
i. [TBD]

F. Stabilize Minimum Wage

i.Demand new increases in the minimum wage be subject to the approval of the PR legislature

G. Other
i. Modernize property registration

ii. Improve permitting speeds / process

Minority
Legislation?
Representativ (Yes / No /
e
Maybe)

GDB Lead

Fortaleza Lead

Agency
Representative

Advisor

F. Lugo

F.Dox

J. Flores
(Justice)

V.Feliciano

F. Lugo

M.Fernandez

N. Adames

M.Bhatia

--

F. Lugo

M.Fernandez

N.Adames

M.Bhatia

Yes

J. Pagan

I. Collazo,
N.Lopez

I.Coln,
ME.Fernndez

J. Pagan

I. Collazo,
N.Lopez

I.Coln, ME.
Fernndez

Krueger
Team,
V.Feliciano
Krueger Team,
V.Feliciano

J. Pagan

M. Medina

V. Thomas

Krueger Team

Yes (Federal)

-Yes

--

J. Pagan

M. Medina

V.Thomas

Krueger Team

Yes (Federal &

Local)

--

--

--

--

--

Luis Lopez

--

J.Flores
(Justice)

--

Maybe

G. Lavergne / G. Gil

--

A.Lastra, L.
Garca Pelatti,
W. Ortiz

--

Maybe

Economic and Fiscal Adjustment Plan Workstreams, Responsibilities & Update

Fortaleza Lead

Agency
Representative

Advisor

J.Coleman,
G.Lavergne

A. Montaez

J.Zaragoza

[]

J.Coleman,
G.Lavergne

A. Montaez

J.Zaragoza

--

[]

a. Implement legislated increase in SUT (4.5%)

J.Coleman,
G.Lavergne

A. Montaez

J.Zaragoza

--

[]

b. Complete transition to broad-based VAT

J.Coleman,
G.Lavergne

A. Montaez

J.Zaragoza

--

[]

F. Lugo

A. Montaez

J.Zaragoza

Luis Cao

Yes

F. Lugo / L. Lopez

A. Montaez

J.Zaragoza

Luis Cao

--

J. Coleman / R.
Fishman

A. Montaez

J.Zaragoza,
A.Medina

O'Neil &
Borges / CRIM

Yes

J. Coleman / R.
Fishman

A. Montaez

J.Zaragoza,
A.Medina

O'Neil &
Borges / CRIM

[]

J.Coleman,
G.Lavergne

A. Montaez

J.Zaragoza

[]

[]

J.Coleman,
G.Lavergne

A. Montaez

J.Zaragoza

[]

[]

J.Coleman,
G.Lavergne

R. Cajigas

L.Cruz

[]

II. Fiscal Reform

A. Revenue
i. Increase and broaden consumption taxes

ii. Update property tax regime

a. Update property tax registry and valuations

iii. Reform corporate tax regime

a.[TBD]

iv. Bar tax amnesties and closings

a. Restrict use of tax amnesties/closings during Plan implementation

Minority
Legislation?
Representativ (Yes / No /
e
Maybe)

GDB Lead

x Initiative

B. Expenditure

V2A Coordinator

--

--

Economic and Fiscal Adjustment Plan Workstreams, Responsibilities & Update

Minority
Legislation?
Representativ (Yes / No /
e
Maybe)

GDB Lead

Fortaleza Lead

Agency
Representative

Advisor

J.Coleman,
G.Lavergne

R. Cajigas

L.Cruz

[]

[]

a. Freeze formula-based transfers (UPR; munis; judiciary)

J.Coleman,
G.Lavergne

R. Cajigas

L.Cruz

[]

[]

b. Freeze labor costs (salary and benefits)

J.Coleman,
G.Lavergne

R. Cajigas

L.Cruz

[]

[]

c. Extend hiring freeze; attrition policy

J.Coleman,
G.Lavergne

R. Cajigas

L.Cruz

[]

[]

J.Coleman,
G.Lavergne

A. Alemay

R.Romn,
L.Cruz

[]

[]

a. Reduce number of teachers through attrition and incentivized retirement, from [*] to [*] in 5 years

J.Coleman,
G.Lavergne

A. Alemay

R.Romn,
L.Cruz

[]

[]

b. Consolidate/close [*] schools per year for 5 years

J.Coleman,
G.Lavergne

A. Alemay

R.Romn,
L.Cruz

[]

[]

--

[]

x Initiative

V2A Coordinator

i. Extend Act 66-2014 until 2025

ii. Achieve efficiencies at Department of Education

-R.Fishman

N.Lopez

U.Walker,
L.Cruz

[]

[]

a. Means-test tuition

R,Fishman

N.Lopez

U.Walker,
L.Cruz

[]

[]

b. Reduce number of campuses

R.Fishman

N.Lopez

U.Walker,
L.Cruz

[]

[]

J. Clivilles

F. Dox

R.Rivera ,
L.Cruz

[]

[]

a. Cuts in Medicaid spending in excess of minimum standards in US mainland

J. Clivilles

F. Dox

R.Rivera ,
L.Cruz

[]

[]

b. Institute cost control measures

J. Clivilles

F. Dox

R.Rivera ,
L.Cruz

[]

[]

--

--

[]

--

--

[]

iii. Reduce subsidies for the University of Puerto Rico

iv. Reduce Health Care expenses

v. Other
a. Complete reform of PRTRS
b. Reduce or eliminate mandatory public sector bonuses

--

--

--

--

A. Febres / L.
Lopez

--

K.Daz

W. Santiago,
L.Cruz

[]

[]

A. Febres / L. Lopez

R.Cajigas

L.Cruz

[]

[]

Economic and Fiscal Adjustment Plan Workstreams, Responsibilities & Update

Fortaleza Lead

Agency
Representative

Advisor

A. Febres / L. Lopez

R.Cajigas

L.Cruz

[]

[]

[]

R.Cajigas

L.Cruz

[]

[]

M. Cruz;
G.Rodrguez

G.Santana

[]

--

M. Cruz;
G.Rodrguez

G.Santana

[]

Yes

J. Pagan / J.
Clivilles / F. Lugo

L.Cruz,
K.Garca

Conway;
Krueger Team

--

i. Impose PAYGO/ Gramm-Rudman rules

J. Pagan / J.
Clivilles / F. Lugo

L.Cruz,
K.Garca

Conway;
Krueger Team

Yes

ii. Impose consensus revenue estimating process

J. Pagan / J.
Clivilles / F. Lugo

L.Cruz,
K.Garca

Conway;
Krueger Team

Yes

J. Pagan / J.
iii. Require annual budget to be conformed on government-wide basis (i.e. budget capex, component units, etc.)
Clivilles / F. Lugo

L.Cruz,
K.Garca

Conway;
Krueger Team

Yes

J. Pagan / J.
Clivilles / F. Lugo

L.Cruz,
K.Garca

Conway;
Krueger Team

Yes

c. Reduce paid vacation and sick leave

d. Merge target number of agencies/public corporations

Minority
Legislation?
Representativ (Yes / No /
e
Maybe)

GDB Lead

x Initiative

V2A Coordinator

III. Infrastructure, P3s and Privatization Initiatives

A. Implement 5-year, $1.5 billion self-funded capital expenditure plan
i. Investment plan to be subject to Oversight Board approval

IV. Institutional Reform

A. Reform Budgetary Rules

iv. Require proper budgeting of income tax refunds

Economic and Fiscal Adjustment Plan Workstreams, Responsibilities & Update

x Initiative

V2A Coordinator

B. Improve Transparency and Disclosure

i. Implement new ERP platform for entire Commonwealth
ii. Reform government-wide accounting procedures to ensure prompt accounting of assets and liabilities
iii. Strengthen economic statistical analysis
iv. Require quarterly publication of certain base disclosure information

GDB Lead

J. Pagan / J.
Clivilles
J. Pagan / J.
Clivilles /
R. Barrios / J.
J. Pagan / J.
Clivilles /
J. Padilla
J. Pagan / J.
Clivilles / F. Lugo
J. Pagan / J.
Clivilles /
J. Padilla

Fortaleza Lead

LD. Rosa
LD. Rosa
LD. Rosa
LD. Rosa
LD. Rosa

Agency
Representative

L.Cruz,
M.Marazzi,
L.Garca,
L.Cruz,
M.Marazzi,
L.Garca,
L.Cruz,
M.Marazzi,
L.Garca,
L.Cruz,
M.Marazzi,
L.Garca,
L.Cruz,
M.Marazzi,
L.Garca,

Advisor

Conway;
Krueger Team
Conway;
Krueger Team'
Humberto
Conway;
Krueger Team

Minority
Legislation?
Representativ (Yes / No /
e
Maybe)

-[]
[]

Conway;
Krueger Team

[]

Conway;
Krueger Team

[]

R. Barrios / J.
M. Fernndez;
Pagan / G. Lavergne
LD.Rosa

A.Garca

Conway;
Krueger Team

i. Institute Treasury Single Account initiative

R. Barrios / J. Pagan M. Fernndez;

/ G. Lavergne
LD.Rosa

A.Garca

Conway;
Krueger Team

[]

ii. Create new department of Finance and Economy

R. Barrios / J. Pagan M. Fernndez;

/ G. Lavergne
LD.Rosa

A.Garca

Conway;
Krueger Team

[]

R. Barrios / J. Pagan M. Fernndez;

/ G. Lavergne
LD.Rosa

A.Garca

Conway;
Krueger Team

[]

R. Barrios / J. Pagan M. Fernndez;

/ G. Lavergne
LD.Rosa

A.Garca

Conway;
Krueger Team

[]

C. Other

a. Merger of GDB fiscal agency and financial advisory with Treasury and OMB

iii. Implement Act 79-2015's restrictions on GDB loan activity

--

Economic and Fiscal Adjustment Plan Workstreams, Responsibilities & Update

x Initiative

V2A Coordinator

GDB Lead

Fortaleza Lead

Agency
Representative

Advisor

Minority
Legislation?
Representativ (Yes / No /
e
Maybe)