FOMB - Letter - Governor - CW FY25 Budget NoV - May 16, 2024

BY ELECTRONIC MAIL
May 16, 2024
The Honorable Pedro R. Pierluisi

Governor of Puerto Rico
Dear Governor Pierluisi:
This letter serves as a Notice of Violation (“NOV”) pursuant to Section 202(c)(1)(B) of

PROMESA that the Financial Oversight and Management Board for Puerto Rico (the “Oversight
Board”) has determined, in its sole discretion, that the proposed Commonwealth of Puerto Rico
(the “Commonwealth”) budget for fiscal year 2025 (“FY25” or “FY2025”), submitted to the
Oversight Board on March 25, 2024 (the “Proposed FY25 Budget”) is not compliant with the 2023
Fiscal Plan for the Commonwealth of Puerto Rico (the “2023 Fiscal Plan”) as certified by the
Oversight Board on April 3, 2023.
This letter provides a description of necessary corrective actions. It also includes updated FY25
payroll and operating expenditures by concept of spend necessary to achieve a compliant budget
for FY25 (the “FY25 Revised Budget Targets”). These figures must be incorporated in the revised
proposed FY25 budget (the “Revised Proposed FY25 Budget”) to be submitted to the Oversight
Board no later than May 21, 2024.
Government’s Proposed FY25 Budget Submission
The Government’s Proposed FY25 Budget is not compliant with the 2023 Fiscal Plan and does
not meet the requirements set forth by the Oversight Board. Substantial revisions and additional
information from the Government are required before the Oversight Board can approve the
Government’s proposed FY25 budget and submit it to the Legislature pursuant to Section
202(c)(1)(A) of PROMESA.
In considering each of the Government’s requests for incremental funds and budgetary changes,
the Oversight Board reviewed supporting data, where provided, and engaged in discussions with
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May 16, 2024
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the Government and relevant Government agencies. The FY25 Revised Budget Targets attached
to this letter remain at $13,062 million and include reallocations of appropriations from reserve
accounts under the Custody of the Office Management and Budget (“OMB”) and Custody of the
Department of Treasury (“Treasury”) to fund certain proposed increases.
Regarding denied requests, we acknowledge the potential necessity for additional funding. Should
adequate supporting information be provided within the current fiscal year, these requests will be
reconsidered.
The funding requirements associated with expiring federal funds, including American Rescue
Plan Act of 2021 (“ARPA”) and Elementary and Secondary School Emergency Relief (“ESSER”)
funds, have been recognized and accounted for within the budgetary review. The funding
requirements associated with ARPA will be held in a reserve within a custody account, and the
release of funds to the relevant agencies shall be contingent upon the Government’s submission
of adequate supporting documentation and subsequent approval from the Oversight Board. For
detailed conditions governing the release of funds, please refer to the “Budgetary Changes and
Investments” section.
Government’s Compliant FY25 Budget Requests
The following list includes items from the Proposed FY25 Budget that the Oversight Board has
determined to be in compliance with the 2023 Fiscal Plan. The following requests have been
approved in the full amount that the Government has requested and will be provided within the
FY25 Revised Budget Targets.
• Puerto Rico Department of Natural and Environmental Resources (“DNER”): $15 million
o Funding to rent flood control pumps and diesel for Casa Bombas (one-time)
• Appropriation under the Custody of OMB – Flood Control Pumps: $15 million
o Reserve for DNER to rent flood control pumps and diesel for Casa Bombas (one-time)
• Appropriation under the Custody of OMB – Hogares: $15 million

o For Family and Children Administration (“ADFAN”) “Hogares” initiative providing
comprehensive care related services; with the agency continuing efforts to secure
Federal Funds to cover the remaining cases (recurring)
• Contributions to Political Parties: $14 million

o For electoral campaigns, $12 million is allocated for political party donation matching,
and $2 million is allocated for administrative campaign expenses pursuant to Act 222-
2011 (one-time)
• Department of Education: $13.6 million

o To conduct necessary repairs and maintenance in public schools among the different
districts (one-time)
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• Appropriation under the Custody of OMB – University of Puerto Rico Comprehensive Cancer
Center: $4.3 million
o Funding for the Center’s operating expenses, targeting sustainability by FY28; subject
to a budget milestone (one-time)
• University of Puerto Rico Comprehensive Cancer Center: $6.8 million

o Additional payroll for the Comprehensive Cancer Center's Business Plan (one-time)
• Appropriation under the Custody of OMB – State Match for Code Enforcement: $11.2 million
o For necessary state share of the Planning Board’s FEMA code enforcement grants (one-
time)
• Appropriation under the Custody of OMB – HMS Ferries Contract Reimbursed Expenses: $11
million increase
o For Puerto Rico Integrated Transit Authority (“PRITA”) to cover Operating
Management Agreement reimbursement expenses (one-time)
• Appropriation under the Custody of OMB – Integrated Centers for Minors Victims of Sexual
Aggression: $7.2 million
o To support post-hurricane reconstruction and operational expenses as mandated by Act
158-2020 (one-time)
• Appropriation under the Custody of OMB – DNER Maintenance Reserve: $6 million

o To maintain natural resources and mitigate flood risks in alignment with Act 49-2023:
$4.7 million for machinery (one-time) and $1.3 million for machinery maintenance
(recurring)
• Puerto Rico Fire Department Bureau: $3.2 million

o For operating expenses such as fuel and lubricants, maintenance, and materials in
compliance with Act 83-2023 (recurring)
• Medical Emergency Corps Bureau: $2 million

o For the recruitment of paramedics and dispatchers to improve response time to medical
emergencies (recurring)
• Appropriation under the Custody of OMB – DPS Technology Multiannual Execution Plan: $2
million
o To enhance the Department of Public Safety (“DPS”) services through the expansion
of bodycams, acquisition of additional license plate readers, digitalization of fire
inspections, standardizing cybersecurity among all bureaus, and other technology
improvements (one-time)
• Appropriation under the Custody of OMB – Grid Resilience Grant: $1.7 million
o State share for the Central Office for Recovery, Reconstruction, and Resiliency
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(“COR3”) Grid Resilience Grant to cover professional services and equipment (one-
time)
• Appropriation under the Custody of OMB – Sor Isolina Ferré Centers: $1.1 million
o Funding for improvements of centers, community activities and services for
organizational development, and technology equipment (recurring)
• Appropriation under the Custody of Treasury – Boys & Girls Club: $1.1 million
o Funding to support the organization’s impact to youth and communities (recurring)
• Appropriation under the Custody of OMB – Building Resilient Infrastructure Communities

(“BRIC”) grant: $500 thousand
o To fund the state share for BRIC grant (recurring)
Government’s FY25 Budget Requests Approved in Part as Compliant with the 2023 Fiscal
Plan
• Appropriation under the Custody of OMB – Funding for Municipalities

o Government’s request: $74 million
 For the continued support of municipality initiatives in compliance with the 2023
Fiscal Plan
o Oversight Board’s response: $74 million
 $30 million to support essential services of eligible municipalities (recurring) held
under the Custody of OMB until an updated distribution plan is submitted and
approved by the Oversight Board. $44 million held under the Custody of OMB to
be released once the Oversight Board and the Government agree on initiatives for
municipal service reform and outcomes
• Appropriation under the Custody of OMB – Additional Civil Service Reform (“CSR”)
o Government’s request: $70.7 million
 To be funded from the Payroll Reserve
 To cover strategic investments for public servants, to scale CSR across
Government agencies, and implement new Talent Acquisition and Talent
Management processes (recurring)
• Commonwealth State Elections Commission

 $5.3 million to cover payroll costs associated with the 2024 general elections and
$25.7 million to cover operational costs associated with the 2024 general elections,
including technology, advertisements, transportation, materials, and other related
expenses
o Oversight Board’s response: $21.8 million
 $2 million under payroll: $336 thousand to cover increased per diem disbursements
$1.7 million for the general election to cover temporary employee costs (one-time)
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 $19.8 million under operating expenses including $8.4 million for ballot printing,
JAVAA freight costs, and IT systems, $3.5 million for Electoral ID supplies, food
expenses, and medical and safety materials, $3.2 million for advertising awareness
campaigns, $2.2 million for transportation, $1.2 million for general election
operations, $866 thousand for legal and consulting services, and $418 thousand for
telecommunications and Vote by Phone (one-time)
• Family and Children Administration (“ADFAN”)

 $2.8 million under payroll to hire administrative and direct service positions and
$21 million under operating expenses for the housing of the elderly adults and home
services of elderly adults
 $21 million to cover existing and projected new cases in elderly adult housing and
home services (recurring)
 $3.3 million to hire 100 social workers and 100 social worker technicians for a six-
month period for the Elderly Program (recurring)
• Puerto Rico Technology and Innovation Services (“PRITS”)

 Proposed increase for various PRITS Government-wide initiatives, including
software licenses, equipment purchases, and awareness campaigns
 $3.7 million to cover Government-wide contracts for Microsoft, Oracle, and
various cyber security and software subscription licenses (recurring) and $406
thousand to cover advertising costs related to cybersecurity awareness, per Act 40-
2024 and federal grant requirements (one-time)
• Appropriation under the Custody of OMB – Age in Place and Vida Plus Initiative
 Proposed funding managed by the Office of Socioeconomic Community
Development (“ODSEC”) for two programs: $20 million for Age in Place and $1
million for Vida Plus to promote the welfare and improve the quality of life of older
adults in accordance with Act 58-2018
 $10 million for Age in Place based on the agency’s expected capacity to provide
services (one-time) and $500 thousand for Vida Plus (one-time)
• Appropriation under the Custody of OMB – Special Education Facilitators

 For PRDE to hire 856 Special Education coordinators, aiming to alleviate
administrative burdens on teachers, ensure legal compliance, and improve services
for students
o Oversight Board’s Response: $4.7 million
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 Under the Department of Education: $826 thousand in payroll to launch the Special
Education Coordinators initiative pilot program (recurring). The pilot program will
allow PRDE to address the needs of the Special Education program while
concurrently conducting a staffing analysis to assess whether existing staff can
carry out coordinator duties, thereby minimizing the necessity for new hires. This
initiative will facilitate the expansion of services, enable a thorough assessment of
student needs, and ensure that services are allocated based on necessity and
effectiveness
 Under the Custody of OMB: $3.9 million milestone incentive to expand the Special
Education Coordinators initiative, releasing funding upon successful completion of
the pilot program and meeting predefined performance targets/KPIs (recurring)
• Department of Health
 Funding required for several items including $14.3 million to support the medical
residencies and fellowships, $3 million to support the total cost of the 330 Centers,
and $900 thousand for Gender Violence initiatives
 $14.3 million to support the medical residencies and fellowships as follows: $5.2
million to increase the number of resident positions by 136, $4.8 million to provide
Scholarship-Incentive for all positions, $3.7 million for the Accreditation Council
for Graduate Medical Education acceptance of generalist and internal medicine
positions, and $500 thousand for the 267 current positions (recurring)
• Puerto Rico Police Department

 $14 million to cover expenses previously funded by the Police Reform budget due
to federal audit, and $2 million proposed for reallocating OMB-held funds to
support the gender violence media campaign
 For expenses previously covered by the Police Reform Budget (recurring); funds
for the gender violence media campaign will remain under Custody of OMB
• Mental Health and Drug Addiction Services Administration (“ASSMCA”)

 For facility upgrades and personnel hiring in healthcare, including forensic
psychiatry rooms, alcoholism unit, increased home rates, youth and children
treatment unit, forensic psychiatry hospital, evaluator personnel, and electronic
health records implementation
 $4.1 million to support costs for hospital accreditation at the Rio Piedras Psychiatric
Hospital (one-time), $1.5 million for payments to the Medical Service
Administration of Puerto Rico (“ASEM”) for services provided to the Alcoholism
Program Unit and the San Juan Forensic Psychiatry Hospital (one-time), and $13.3
million including: $683 thousand to cover increasing prices in surgical materials
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(recurring), $11.5 million to give continuity to specialized practitioners’ contracts

and recruit inspectors for Transitional Homes compliance (recurring) and $1.1
million for security guard contracts to accommodate increased patient care in the
Forensic Hospitals (recurring)
• Appropriation under the Custody of OMB – Subsidy for Diagnostic and Treatment Center
(CDT)
 To be funded from Budgetary Considerations for additional subsidy to CDT’s.
 $2.3 million in ARPA funds which will not be available during FY25 and $2.1
million in increases to cover additional subsidy to CDTs (one-time)
• Puerto Rico Department of State

 Funding of $1.6 million, with $1.1 million for new administrative and citizen-
facing positions to meet operational demands, and $603 thousand in unallocated
funding not attached to a specific request
 Operational increases for various purposes, including the Government Transition
Committee and other operating expenses
o Oversight Board’s response: $616 thousand
 $616 thousand to cover the necessary costs for the Transition Committee, and
transition committee operating expenses (one-time)
• Administration for Socioeconomic Development of the Family (“ADSEF”)

 $4.8 million to cover transition to Nutrition Assistance Program / Supplemental
Nutrition Assistance Program (“NAP” and “SNAP”), $2 million for services of
Turnos Media LLC, and $250 thousand for the “Cradle of Talent” agreement with
Department of Economic Development and Commerce (“DDEC”) and Participant
Record Information System (“PRIS”)
 $1.3 million for Turnos Media, $1.9 million for Temporary Assistance for Needy
Families (“TANF”) to meet Federal Funds grant requirement, and $250 thousand
for Cradle of Work to develop PRIS (one-time). Additional NAP/SNAP funding is
not required in FY25 as the agency still has access to a similar amount of unutilized
funds from FY24
• Puerto Rico Department of Justice

 $443 thousand for increase in the employer contribution to the medical plan from
$100 to $125 monthly, $6.4 million increase to replace decreased federal Victim of
Crimes Act (“VOCA”) funds
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 $1.2 million payroll for 1,480 non-union employees, covering latest medical plan
costs (recurring) and $6.4 million for VOCA federal funds replacement and
increase in operating expenses (one-time)
• Correctional Health Services Corporation (“CHSC”)

 Funding for purchased services to cover current medical services, with the
Correctional Health Program having requested additional funds through budgetary
reprogramming requests in FY22 through FY24
 Increase $6 million to cover medical services and $1 million allocation for materials
and supplies due to rising costs (recurring)
• Administration for the Childhood Care and Integral Development (“ACUDEN”)

 Social well-being funding to support Early Childhood Resource and referral
centers, aiming to provide educational resources, training, workshops, and
materials in early childhood education for parents, caregivers, professionals, and
the community
 To cover various operational costs for the Early Childhood Resource and Referral
Centers, consisting of $456 thousand being reallocated from a payroll excess to
fund the full requested amount of $5 million (recurring)
• Appropriation under the Custody of OMB – Municipal Territorial Plans

 For development of Territorial Plans for 61 municipalities, which includes a phased
approach over three years, subject to the approval of OMB and the Oversight Board.
 Annual funding until FY27 to cover the initiative costs based on the schedule
provided by the revised workplan (one-time) held under the Custody of OMB to be
released subject to municipalities meeting certain eligibility requirements
• Puerto Rico Planning Board

 To cover projected payroll needs
 To align with active employee roster and vacant positions approved in FY24
(recurring)
• Puerto Rico Office of Human Resources Management and Transformation

o Government’s request: $600 thousand
 To cover projected payroll shortfall
 Increase based on payroll roster analysis, to account for shortfall due to CSR
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related funding for hiring new personnel and adjusting salary scales (recurring)
• Office of the Citizen’s Ombudsman

o Government’s request: $534 thousand
 $158 thousand under payroll to fill 3 positions out of the 82 vacant positions and
$376 thousand under operating expenses to relocate agency headquarters and to
reopen the offices in Bayamón, Arecibo, and Ponce
 For the relocation and reopening of the offices including photocopier contracts
with supplier’s, software and hardware maintenance contract, rental of premises,
and premiums (recurring)
Government’s Denied Non-Compliant FY25 Budget Requests
• Appropriation under the Custody of OMB – University of Puerto Rico (“UPR”): $102 million
o Incremental one-time funding for UPR Fiscal Plan Initiatives
o Reason for Non-Compliance Determination: The Government and the University of
Puerto Rico were still developing adequate information to support the planned use and
distribution of funds at the time of the budget submission
 This incremental one-time funding request must outline clear objectives and goals
aimed at supporting economic development and achieving fiscal responsibility,
while addressing critical student, faculty, and infrastructure needs. These
objectives should include:
- A proposed list of initiatives identifying the strategic goals and
objectives from the UPR Strategic Plan to which each initiative
aligns. This list should include a breakdown of the funding
allocation, specifying both amount and purpose of the incremental
funding
- A proposed comprehensive list of specific actions (“trigger
milestones”) that the UPR intends to accomplish to qualify for the
release of the incremental funding. This should include a timeline
for each initiative implementation milestones and key performance
indicators (“KPI”) necessary for evaluating progress
• Contributions to the Municipalities: $80 million

o For Commonwealth contributions to Medicaid on behalf of the municipalities
o Reason for Non-Compliance Determination: request is inconsistent with judicial
injunction of Act 29-2019 as noted in the Fiscal Plan Notice of Violation dated
December 6, 2023
• Appropriation under the Custody of OMB – Financial Management Agenda: $69.6 million
o Funded from the Budgetary Considerations Reserve and held under the Custody of
OMB to cover expenses related to the Financial Management Agenda
o Reason for Non-Compliance Determination: details on specific uses, cost estimates,
or conditions for allocation to the participating agencies were not provided. The
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May 16, 2024
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request will be revaluated if sufficient information is provided during FY25
• Appropriation under the Custody of OMB – Initiative to Decentralize the Department of

Education (“IDEAR”): $21 million
o For the Department of Education to decentralize operations by transferring budget
management, infrastructure maintenance, and curriculum development to local or
regional departments
o Reason for Non-Compliance Determination: Oversight Board acknowledges the need
to implement the decentralization initiative. However, the information provided during
the budget process (to request additional funding) was insufficient to effectively assess
the proposal submitted by PRDE. PRDE did not provide clarity on potential
duplication of positions nor outline the methodology used to determine the necessity,
quantity, and compensation of the proposed positions. PRDE also needs to submit
information to verify that salaries of proposed positions were compared against both
the private and public sectors within the local labor market to ensure that PRDE
employees receive competitive, fair, and justified compensation. If additional
information is provided during the fiscal year, the funding request for additional
staffing can be reconsidered
• Appropriation under the Custody of OMB – Social Reconstruction and Violence Prevention
Plan: $20 million
o For implementation of the Comprehensive Social Reconstruction and Violence
Prevention Plan
o Reason for Non-Compliance Determination: adequate information was not provided
to support this request, including the objective, business plan, and specific allocation
of requested funds to ensure all components of the social initiative can be implemented
• Puerto Rico Department of Agriculture: $15.5 million

o Wage subsidies of $15 million in Custody of OMB to the Department of Agriculture
to be allocated to Agricultural Enterprises Development Administration (“ADEA”)
and $500 thousand for agency buildings repairs
o Reason for Non-Compliance Determination: Agency can cover the $15 million request
with Special Revenue Funds under ADEA. Moreover, adequate information was not
provided to support the $500 thousand request for building repairs
• Appropriation under the Custody of OMB – Temporary Funding for Healthcare Entities: $15
million
o Reserve to assist healthcare facilities that potentially need additional workforce
resources
to support this request
• Appropriation under the Custody of OMB – DPS Staffing Analysis: $15 million
o To conduct a staffing analysis aimed at enhancing efficiency and automation in the
DPS shared service office
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to support this request including cost breakdown or completion date. Funding will
remain under the Custody of OMB until further detail for the initiative is received and
considered for a milestone allocation
• Appropriation under the Custody of OMB – Puerto Rico Department of Transportation and
Public Works (“DTOP”) Maintenance Reserve: $12 million
o To cover additional road maintenance repairs
to support this request. Additionally, SRF funding is available and sufficient for road
maintenance and repair
• Puerto Rico Department of Transportation and Public Works: $10 million

o Funding for road repairs under an agreement between Highways and Transportation
Authority (“HTA”) and DTOP
o Reason for Non-Compliance Determination: $54 million of capital expenditure funds
is expected to be provided to HTA in FY25
• Office of the Women’s Advocate: $4 million

o Recurring increase in undistributed appropriations for Support, Response, and
Education Program for Gender Violence (“PARE”) funds to comply with executive
order 2023-020 combating gender violence
o Reason for Non-Compliance Determination: funds will be held under the custody of
the OMB and disbursed throughout the fiscal year. Disbursement will occur upon an
agency’s request for funding, as established by precedent
• Appropriation under the Custody of OMB – Vacation Liquidation of Trust Employees: $4

million
o To cover vacation liquidation for trust employees in FY25, anticipating potential staff
changes after the general elections
• Forensic Sciences Institute: $2.5 million increase

o $2.3 million for salary increases funded by expiring ARPA funds and $200 thousand
for gender violence awareness media campaign
o Reason for Non-Compliance Determination: ARPA replacement funds will be
approved and held under OMB Custody; funding for gender violence awareness media
campaign to remain under Custody of OMB and addressed during the fiscal year based
on strategic analysis and interagency plan
• Appropriation under the Custody of OMB – NGO – Payments for non-profits: $2.5 million
o To fund increase in subsidies for NGOs due to inflation and population increases
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• Appropriation under the Custody of OMB – Residential Centers for Minors Under Government
Guardianship: $8.8 million
o Funding for Family and Children Administration (“ADFAN”) Residential Centers for
Minors Under Government Guardianship
o Reason for Non-Compliance Determination: adequate information and documentation
demonstrating clear need to increase baseline funding was not provided to support this
request
• Secretariat of the Department of the Family (“DOF”): $1.5 million

o $1 million for DOF staffing analysis and re-engineering of the Secretariat and regions
and $500 thousand for a service delivery optimization study
• Appropriation under the Custody of OMB – Department of State Transition and Assumption:
$1.1 million
o Costs related to the transition of power process and operations for 2024 general
election
• Office of the Governor: $400 thousand

o To fund gender violence media campaign from the OMB Custody into the Agency
o Reason for Non-Compliance Determination: funds to be held under the Custody of
OMB and addressed during the fiscal year through budgetary reprogramming requests
• Appropriation under the Custody of OMB – Puerto Rico Broadcasting Corporation (“WIPR”):
$234 thousand
o To cover WIPR expenses related to court sentencing under donations, subsidies, and
distributions within the Custody of OMB
o Reason for Non-Compliance Determination: Consistent with the 2023 Fiscal Plan, no
funds will be appropriated for WIPR as the public corporation must move forward
with the next steps to finalize its privatization and/or change of legal status to a non-
for-profit organization.
• Department of Correction and Rehabilitation: $11.8 million

o To fund an additional $200 per month salary increase, aligning salaries to those of
police officers
o Reason for Non-Compliance Determination: Sufficient information and analysis was
not provided to support the requested salary increases
FY25 Revised Budget Targets

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The Oversight Board expects the Government’s revised FY25 budget submission to follow the
agency payroll and operating expenditures provided in Appendix B. 1
In addition to the Oversight Board’s responses to the Government’s requests above, the following
section lists major budgetary changes and investments in both the General Fund and Special
Revenue Fund included within the Oversight Board’s FY25 Revised Budget Targets.
General Fund Budgetary Changes and Investments in the FY25 Revised Budget Targets
• Commonwealth State Elections Commission: $3.5 million decrease

o $3.5 million redistribution of cost concepts to align with total projected needs during
the election year; the Agency and OMB submissions encompass the total projected
cost for the general elections, covering general election expenses and
advisory/litigation services for the five electoral commissions as specified by Act 58-
2020. The total amount in revised targets, including approved increments, cover all
necessary FY25 costs with any remaining amounts held under Custody of OMB (one-
time)
• Department of Correction and Rehabilitation: $1.1 million increase

o Necessary funding for leasing of power generators, correctional facilities repairs and
maintenance, community programs and rehabilitation centers for the correctional
population, as well as for the provision, management, and administration of healthcare
services to the correctional population (recurring)
• Puerto Rico Technology and Innovation Services (“PRITS”): $31 thousand increase
o Payroll adjustment to support current headcount (recurring)
• Department of Health (“DOH”): $16.7 million increase

o For the Intellectual Disability Program to be aligned with the court’s directive order
(case Civ. No. 99 - 1435 SCC) to improve services for individuals with disabilities,
funded through reapportionment of $15 million from funds under the Custody of OMB
originally for the 330 Centers, and an incremental $1.7 million through budgetary
reserve (recurring)
• Puerto Rico Police Department: $8.2 million increase

o $15.6 million for operational expenses related to recruiting 800 cadets, $5.3 million
for four helicopters, $2.4 million for recurring telephone expenses, $1.4 million for
facility cleaning and maintenance contract, and $100 thousand for a new airport hangar
(recurring)
o Reapportionment of $21.6 million from Police Department to the Department of Public
Safety, to cover active civilian employees as part of its back-office consolidation and
for the hiring of 25 additional civilians to substitute sworn officers, plus a $5 million
increase to facilitate recruiting 800 cadets (recurring)
1
Appendix B, provides the FY25 Revised Budget Targets in Excel format.
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• Appropriation under the Custody of OMB – Transportation Allowance for Police Officers:
$3.1 million increase
o To cover the increase from $30 to $100 in police officer’s tolls/transportation
allowance for 7,403 officers, to encourage employee retention (recurring)
• Department of Education: $110.7 million increase

o $69 million for expiring ESSER funds for payroll, $13 million for expiring ESSER
funds for operating expenditures, $22 million for CSR-related salary increases
(recurring), and $6.7 million increase for Special Education Professional Services due
to discontinued State Insurance Fund Corporation (“SIFC”) funding transfers
(recurring)
• Puerto Rico Department of Transportation and Public Works: $5.9 million decrease
o To reduce payroll by $10.8 million as the reduced allocation would still be sufficient
to cover both the existing payroll needs and the recruitment of vacant positions one-
time) along with $4.9 million increase for court-mandated payments stemming from
case KAC2005-5021 pending payments for FY24 and FY25 under a 15-year payment
plan
• Puerto Rico Department of Justice: $2.8 million increase

o For lease payments of private property contracts (recurring)
• Office of the Women’s Advocate: $30 thousand increase

o Recurring funding for professional services for consulting on educational material
management and advising the Attorney General on women’s rights policies (recurring)
• Fire Bureau of Puerto Rico: $5.4 million increase

o $3.6 million increase to cover the recruitment of 100 firefighters (recurring), and $1.8
million increase in operational expenses for new firefighter equipment (one-time)
• Puerto Rico Planning Board: $2.9 million increase

o $2.5 million for FY25 (one-time), $1.9 million for FY26 and $1.8 million starting
FY27 for the AI model development to aid in accurate financial forecasts and budget
preparation. Additionally, $500 thousand for Input-Output matrices to maintain
continuity as the project first phase started in FY24 (one-time)
• Medical Emergency Corps Bureau: $28 thousand increase

o To cover the acquisition of uniforms to be provided to new paramedics, based on
Collective Bargaining Agreement conditions (one-time)
• Puerto Rico Office of Human Resources Management and Transformation: $99 thousand
increase
o To cover recurring costs for office and parking leasing expenses (recurring)
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• Office of the Governor: $115 thousand increase

o Funding for federal fund matching of the AmeriCorps grant (one-time)
• Medical Services Administration of Puerto Rico (“ASEM”): $20.1 million increase

o $5 million to cover surgical materials due to rising prices of medicine (recurring), $3.7
million to implement the Unified Cost Model System (one-time), and $11.4 million
corresponding to salary adjustments for job classes that provide direct services to
patients (front-office personnel), along with any other approved salary adjustments for
the remaining job classes (back-office personnel) (recurring)
• Appropriations under the Custody of OMB – ASEM Vacant Positions: $6.9 million increase
o $6.9 million for CSR-related salary increases to budgeted vacant positions (recurring)
• Puerto Rico Department of the Treasury: $962 thousand increase

o Increase in allocation for cost increase of various recurring amended purchased
services contracts (recurring)
• Shared Services within Puerto Rico Department of Public Safety: $21.7 million increase
o $16.4 million for the transfer of civilians as part of the consolidation of the back-office
of DPS and $5.3 million for the recruitment of 125 civilians to support the transfer of
sworn officers performing administrative tasks back to the field (recurring)
• Fiscal Agency and Financial Advisory Authority: $9.1 million increase

o $1 million increase under payroll due to the previous Oversight Board approval of
reprogramming (recurring), $5.7 million to cover non-Title III restructuring and
operational services (recurring), $2.2 million to cover non-classified insurance, office
parking leasing, maintenance and repairs, and the PR Now Event (recurring), $135
thousand for a three-year annual subscription for the “DebtBook” software (one-time)
and $36 thousand increase for Puerto Rico travel expenses and official out-of-state
travel (one-time)
• Department of Recreation and Sports: $2.1 million increase

o $1.7 million increase to cover occupied positions and new positions being qualified at
OARTH (recurring) and $358 thousand under operating expenses to fund class A
baseball tournament, Act 108-2022 for anti-doping, and the High-Performance Athlete
Scholarship program (one-time)
• Puerto Rico Health Insurance Administration (“ASES”): $7 million decrease

o The budget contains sufficient funding to cover Medicaid related costs (one-time)
• Appropriation under the Custody of OMB – One-Time Funding for General Elections: $4
million increase
o For operational expenses under the Custody of the OMB to address any unforeseen
additional expense during the 2024 general elections (one-time)
Hon. Pierluisi
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• Retirement Board of the Government of Puerto Rico: $3.9 million decrease

o Decreased due to reduced headcount based on payroll roster analysis
• Appropriation under the Custody of OMB – CSR Increase: $3.9 million increase
o Based on updated Fiscal Plan projections for CSR (recurring)
• Puerto Rico Department of Labor and Human Resources: $2.4 million increase
o To cover occupied employee payroll not covered by SRF until job descriptions are
revised and qualified under SRF (one-time)
• Office for People with Disabilities: $1.5 million increase

o $859 thousand for salary increase and $415 thousand recurring to hire new employees
for the ENLACE office to comply with Act 22-2021 (recurring)
o $47 thousand for telecommunication services (recurring), $28 thousand for the
increase for lease payment (recurring), $50 thousand for cloud system updates (one-
time), $43 thousand for increased transportation abroad (one-time), $14 thousand of
obsolete equipment replacements and braille printer (one-time), and $6 thousand for
outstanding debts with supporting historical invoices/balances (one-time)
• The General Court of Justice: $2.1 million increase

o $845 thousand to be transferred from the CSR account under the Custody of the OMB
and $1.23 million to cover incremental lease costs (recurring)
• Office of the Inspector General of Puerto Rico: $1.9 million increase

o Funding to support existing employee headcount and to fill critical vacancies
(recurring)
• General Services Administration: $817 thousand increase

o $802 thousand for professional services (recurring) and $15 thousand
for transportation (one-time)
• Office of Management and Budget: $371 thousand decrease

o Sufficient cost breakdown and detail is provided to support a decrease in Other
Operating Expenses concept (one-time)
• Puerto Rico National Guard: $240 thousand increase

o $84 thousand pursuant to Act 88-2023 during FY24 (recurring) and $156 thousand as
follows: $132 thousand to broaden security and defense trainings (recurring) and $24
thousand for external financial reporting audit (recurring)
• Puerto Rico Institute of Statistics: $237 thousand increase

o $353 thousand increase to hire five new employees to comply with the Institute’s
organic law, which mandates quality verification of statistical methodology and
products from all governmental agencies and municipalities (recurring), $116
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May 16, 2024
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thousand decrease in professional services due to underspend (one-time)
• Office of Socio-economic and Community Development: $232 thousand increase

o To hire 13 new employees for existing positions to support breadth of agency work
(recurring)
• Office of the Election Comptroller: $156 thousand increase

o $54 thousand for increased meetings of the Board of Accountants during the election
year (one-time) and $102 thousand (one-time) distributed as follows: $61 thousand
for transportation events, $6 thousand for purchased services, $5 thousand for
advertisement expenses, $16 thousand for materials, $6 thousand for subscription to
the Electoral Organizations Association and $8 thousand for purchase of IT equipment
(one-time)
• Center for Diabetes Research, Education and Medical Services (“CDPR”): $133 thousand
increase
o $11 thousand incremental funds to cover all current active employees consistent with
the payroll roster provided (recurring), $108 thousand for facilities expenses to cover
half-year's rent at the current facility and half-year’s rent at the new medical facility in
Guaynabo (one-time) and $14 thousand for professional services to cover the contracts
with the endocrinologists (one-time)
• Special Investigations Bureau: $85 thousand increase

o To the payroll baseline to provide sufficient funding for the current headcount
demonstrated within the payroll analysis conclusions (recurring)
• The Port of the Americas Authority: $50 thousand decrease

o Transfer the funds to Payroll Reserve under OMB custody (recurring)
• Child Support Office (“ASUME”): $38 thousand increase

o To fulfill the necessary expense for the administration contract of the Automated Child
Support Enforcement System (recurring)
• Special Independent Prosecutor's Panel: $35 thousand increase

o For the leasing of additional space to store confidential documentation (recurring)
• Office of the Veteran's Advocate of Puerto Rico: $24 thousand increase

o To hire an outsourced social worker that will assist veterans in their benefit claims to
the Department of Veterans Affairs of the Federal Government (recurring)
• Cooperative Development Commission of Puerto Rico: $24 thousand increase

o For the lease rate increase and the expansion of internet services (recurring)
• Appropriation under the Custody of OMB – Expiring Federal Funds Reserve: $17.2 million
Hon. Pierluisi
May 16, 2024
Page 18 of 31
o To cover expiring ARPA funds

o Agency analyses indicated Firefighter Corps of Puerto Rico, Emergency Medical
Corps, and the Forensic Sciences Institute required additional funding due to
expiration of federal funds. The Government should confirm whether there are
additional agencies with expiring ARPA funds that require funding to support
operations
o For each agency with expiring ARPA funds, provide details on deadline to obligate
and disburse funds and confirm remaining amounts available
• Adjustments to utilities funding (PREPA & PRASA): $44 million increase

o Department of Education: $20.4 million increase for PREPA and $6.2 million increase
for PRASA
o Department of Health: $6.1 million increase for PREPA
o Medical Services Administration: $4.2 million increase for PREPA and $3 million
increase for PRASA
o The General Court of Justice: $1.7 million increase for PREPA
o Puerto Rico National Guard: $847 thousand increase for PREPA and $132 thousand
decrease for PRASA
o Department of Correction and Rehabilitation: $443 thousand increase for PREPA and
$865 thousand increase for PRASA
o School of Plastic Arts: $262 thousand increase for PREPA and $48 thousand increase
for PRASA
o Institute of Puerto Rican Culture: $206 thousand increase for PREPA
o Puerto Rico Labor Relations Board: $31 thousand increase for PREPA
o Department of Treasury: $60 thousand increase for PRASA
o State Historic Preservation Office: $41 thousand increase for PRASA
o Department of Transportation and Public Works: $308 thousand decrease for PRASA
Special Revenue Fund Budgetary Changes and Investments in the FY25 Revised Budget
Targets
• Agricultural Enterprises Development Administration (“ADEA”): $19.7 million increase

o $15 million increase to cover the wage subsidy reimbursement for farmers and $4.7
million increase for purchased services (recurring)
• Puerto Rico Department of Transportation and Public Works: $19.3 million increase
o $14.8 million for the Cambiando Carriles Initiative through Purchased Services
(recurring), $3.7 million for amended contracts and e-ticket revenue sharing
obligations (recurring), $783 thousand to settle prior period General Fund obligations
with PREPA and PRASA (one-time)
• University of Puerto Rico Comprehensive Cancer Center: $16.8 million increase

o $10.8 million increase in payroll for the Center’s FY25 expenses, consistent with the
incremental projected revenue collection and the agency’s payroll analysis (recurring).
In addition, $6 million in operating expenses to support the increased expenses, which
Hon. Pierluisi
May 16, 2024
Page 19 of 31
are aligned with the agency's strategy to maximize these funds and decrease reliance
on the General Fund (recurring)
• Department of Housing: $3.8 million increase

o For the low-income Elderly Persons’ Housing Fund (recurring)
• Medical Services Administration of Puerto Rico (“ASEM”): $8.3 million decrease

o Decrease of $2.5 million in the payroll concept and $5.8 million decrease in operating
expenses to align ASEM’s expenditures with historical spending patterns for each
concept and align with its projected revenue (one-time)
• Municipal Finance Corporation $64 million increase

o To align with the expectations of SUT collections in FY25 (recurring)
• Puerto Rico Department of Labor and Human Resources: $46.7 million decrease
o Decrease to align with actual unemployment insurance disbursements levels
(recurring)
• Public Buildings Authority (“PBA”): $10.4 million increase

o For agency to cover current payroll expense
• State Insurance Fund Corporation: $10.7 million decrease

o Less in equipment purchases given that the agency has purchased most of the needed
equipment during the previous fiscal years FY23 and FY24 and does not need the
funds on a recurring basis (recurring)
• Fiscal Agency and Financial Advisory Authority (“AAFAF”): $8.6 million increase
o $7 million for professional services, $1 million for purchased services, $500 thousand
for other operating expenses, $350 thousand for equipment purchases and $55
thousand for materials and supplies (recurring)
• Shared Services within Puerto Rico Department of Public Safety: $2.9 million decrease
o Decrease DPS Shared Service payroll as it is already included in the 911 Bureau's
baseline budget (recurring)
• Office of the Commissioner of Insurance: $2 million increase

o To cover professional services needed to comply with the development and
implementation of the Insurance Commissioner’s certification to meet FEMA’s Obtain
and Maintain Insurance Requirements (one-time)
• Puerto Rico Land Authority: $2 million increase

o $1.5 million increase to cover payroll needs (recurring).
o $425 thousand one-time increase which includes payments for bridge security
services, bank charges, a legal subscription, environmental week expenses, and an IRS
Hon. Pierluisi
May 16, 2024
Page 20 of 31
fine (one-time)
• Commissioner of Financial Institutions of Puerto Rico (“OCIF”): $1.2 million increase

o For professional services to develop a platform that securely consolidates financial
data, for sectors regulated by OCIF (one-time)
• Innovation Fund for Agricultural Development of Puerto Rico: $912 thousand decrease
o For incentives and subsidies, non-government entities, and federal fund matching due
to historical spend being below targets (one-time)
• Puerto Rico Office of Human Resources Management and Transformation: $681 thousand
increase
o Increase of $353 thousand increase based on Oversight Board’s payroll roster analysis
which aligns with OATRH's submission (recurring)
o Increase of $218 thousand, which includes $159 thousand for security services, $38
thousand for materials and supplies, and $21 thousand for media and advertisement
(recurring).
o $110 thousand increase for Government employee lawsuits on a one-time basis (one-
time)
• Cardiovascular Center Corporation of Puerto Rico and the Caribbean: $1.7 million increase
o $805 thousand increase for additional payroll and to hire vacant positions (recurring)
o $919 thousand total increase as follows: $552 thousand increase in materials and
supplies to support the rise in medicine/surgical materials, and $367 thousand
increase in purchased services to cover the increase in the minimum salary for health
professionals (recurring)
• Puerto Rico Industrial Commission: $505 thousand increase

o $380 thousand for medical consultants/specialists to manage claims effectively and
$125 thousand to cover verified debts from prior periods (one-time)
• Puerto Rico Department of State: $422 thousand increase

o Funding to cover cleaning services contract under purchased services, to cover
expiring federal funds
• Medical Emergency Corps Bureau: $407 thousand increase

o Increase of $273 thousand for medical equipment and $134 thousand for medical
materials and supplies to cover additional needs from increasing medical costs
(recurring)
• Puerto Rico Department of the Treasury: $319 thousand increase

o To cover traditional lottery payroll salaries of eight vacancies, where the anticipated
salaries for these positions have increased due to CSR (recurring)
• Agricultural Insurance Corporation: $217 thousand increase

Hon. Pierluisi
May 16, 2024
Page 21 of 31
o Increase in Professional Services concept based on current year actual and projected
expenses (one-time)
• Puerto Rico Labor Relations Board: $49 thousand decrease

o Decrease in expenses to align agency’s expenses to the $470 thousand new revenue
projection (recurring)
• Economic Development Bank of Puerto Rico: $34 thousand increase

o For additional purchased services for building maintenance as the agency projects
$1.1 million surplus in FY25 (recurring)
• Office of Management and Budget: $1 thousand increase

o Incremental $139 thousand to address a shortfall in the recurring salaries of the OMB
employees assigned to the Municipal Management Office (recurring) less a $138
thousand reduction in its other operating expenses and reapportion to payroll
(recurring)
• Puerto Rico Health Insurance Administration (“ASES”): $440.8 million decrease

o Budget decrease for ASES following discussions with the agency to not classify
federal rebates amounts as SRF revenue (recurring)
• Adjustments to utilities funding (PREPA & PRASA): $4.7 million decrease

o Medical Services Administration: $4.7 million decrease for PREPA
Control Language in Budget Resolutions
The following is a summary of the expenditures authorized in this budget organized according to
the agency consolidations set forth in the fiscal plan certified by the Financial Oversight and
Management Board for Puerto Rico on April 3, 2023 (the “2023 Fiscal Plan”).
Hon. Pierluisi
May 16, 2024
Page 22 of 31
Section 1.- The Department of the Treasury (“Treasury”) will remit to the Legislative
Branch and its components, the Judicial Branch, the University of Puerto Rico (“UPR”), and the
non-profit entities that receive funds from the General Fund, monthly and in advance, the
budgetary allotments corresponding to one-twelfth (1/12) of the budget allocation provided herein
for such entities. The one-twelfth monthly allocation to each entity (except with respect to the
Judicial Branch) shall be subject to the 2.5% withholding set forth in the section below during the
first three quarters of FY2025.
Section 2.- The Director of the Office of Management and Budget (“OMB”) may authorize
the encumbrance and disbursement of up to 97.5% of each appropriation intended for encumbrance
and disbursement during the first three quarters of FY2025. The Director of the OMB shall
withhold the remaining two and a half percent (2.5%) of each appropriation until after the end of
the third quarter of FY2025. The withheld percentage of each appropriation shall only be
encumbered and disbursed during the fourth quarter of FY2025 if (i) during the first eight months
of FY2025 the actual General Fund revenues reported to the Oversight Board reach the revenue
forecast in the 2023 Fiscal Plan for that period and (ii) the encumbrance and disbursement is
approved by the Oversight Board. If actual General Fund revenues for the first eight months of
FY2025 fail to reach the revenue forecast for that period, the amount of the withheld percentage
of each appropriation that may be encumbered and disbursed shall be reduced proportionally
according to the negative budget variance between projected and actual General Fund revenues.
Notwithstanding the foregoing, PayGo appropriations, Consent Decree amounts, Highways and
Transportation Authority (“HTA”) appropriations, economic incentive funds and distributions,
cigarette and rum distributions, allocations of Sales and Use Tax (“SUT”) to the Municipal
Administration Fund (“FAM,” for its Spanish acronym), additional appropriations to the General
Fund for the milestones and incentives detailed in the following sections, debt service payments
under the custody of the Department of Treasury, contributions to the Pension Reserve Trust,
Police Retirement Act 106 Defined Contributions, and agencies in the Department of Public Safety
(“DPS”) and in the Health groupings, as defined in the 2023 Fiscal Plan, shall not be subject to the
2.5% withholding requirement.
Section 3.- Notwithstanding any provision in the 2023 Fiscal Plan to the contrary, each of
the appropriations listed in the upcoming FY2025 General Fund Budget under the following
sources of revenue is entirely dependent on the level of revenues collected there from: (i)
Allocation of SUT to FAM (excluding Debt Portion); (ii) Cigarette and rum distributions; and (iii)
The Municipal Revenue Collection Center’s (“CRIM,” for its Spanish acronym) property tax of
1.03%. As such, the disbursements of those appropriations will be gradual and subject to the actual
collections thereunder. No expenditure, disbursement, pledge, or any other encumbrance of any
such funds may be made until such time as the revenues are collected and accounted for in the
books.
Section 4.- For purposes of determining compliance with the fifty percent (50%) election
year expenditures and obligations limitation established in Article 8 of Act No. 147 of June 18,
1980, as amended, known as the “Office of Management and Budget Organic Act,” any obligation
or expenditure of an actually received appropriation in capital expenditures, HTA appropriations,
cigarette and rum distributions, allocations of SUT to FAM, Title III professional fees under the
Hon. Pierluisi
May 16, 2024
Page 23 of 31
custody of the Fiscal Agency and Financial Advisory Authority (“AAFAF,” for its Spanish
acronym) and the Department of Treasury, or if subject to milestone completion will not be
counted to determine compliance with said fifty percent (50%) limitation. In other words, the fifty
percent (50%) expenditures or obligations limitation will only be measured on the unrestricted
appropriation for the entity as established in this Joint Resolution. Provided further that, as a result
of an allocation of an Appropriation subject to milestone completion, an entity may actually spend
or obligate more than 50% of the total appropriation for FY2025, before the new elected officials
assume of their positions, without constituting a violation of said Article 8. Furthermore, subject
to the review and approval of the Oversight Board, if the Department of Education determines that
it needs amounts that may exceed fifty percent (50%) of the total allocations of FY2025 for the
operation of the Department of Education before the new elected officials take possession of their
positions, due to the delay in the availability and receipt of allocated and necessary federal funds,
the Department of Education, subject to the previous approval of the Oversight Board, may
obligate and spend more than fifty percent (50%) of the total allocations for FY2025 before the
newly elected officials assume their positions, without constituting a violation of the fifty percent
(50%) limitation on obligations and expenditures during election years established in Article 8 of
Act No. 147 of June 18, 1980, as amended, known as the “Office of Management and Budget
Organic Act.” The Oversight Board may impose any requirement or condition when approving the
authorization requested by the Department of Education under this Section.
Section 5.- If and when the Government enacts new spending measures that do not provide
for a dedicated, permanent source of revenue or rely on funding sources that fail to materialize,
unless and until the Government (i) amends the law to eliminate the unfunded mandate, or (ii)
specifically identifies alternate funding sources, the Oversight Board, in its discretion, may adopt
a revised fiscal plan and budget to provide for a corresponding reduction in the appropriations to
one or more governmental agencies to account for the shortfall and balance the budget.
Section 6.- No later than 45 days after the closing of each quarter of FY2025, the Secretary
of the Treasury shall revise the projected net revenues of the General Fund for FY2025 (the
“Quarterly Revision”) and shall provide notice of the revision to the Director of the OMB, the
Governor, and the Oversight Board, with a copy sent to the Legislative Assembly. The Quarterly
Revision shall project future revenues based on actual General Fund revenues and include
revisions to the assumptions used to generate the General Fund’s net revenue projections.
Section 7.- All appropriations authorized in any prior fiscal year, including appropriations
without a specific fiscal year, are eliminated and no disbursement of public funds may be covered
by such appropriations, except the following which the 2023 Fiscal Plan redeploys as current
appropriations, subject to Oversight Board adjustment at any time: (i) appropriations authorized in
the fiscal year to carry out permanent improvements that have been encumbered, accounted for,
and kept on the books, but not exceeding two fiscal years on the books; (ii) appropriations in the
certified budget for equipment with procurement cycles that extend beyond the end of the fiscal
year, which are encumbered on or before June 30, 2024; (iii) the portion of the appropriations
authorized for FY2024 that have been encumbered on or before June 30, 2024, which shall be kept
in the books for 60 days after the termination of FY2024 and after those 60 days no amount shall
be drawn against such portion for any reason; (iv) all appropriations for the emergency reserve
Hon. Pierluisi
May 16, 2024
Page 24 of 31
required in the 2023 Fiscal Plan (the “Emergency Reserve”); (v) the unobligated portion of the
Public Assistance Federal Fund Matching appropriation; (vi) unused appropriations for use in audit
services held at the Department of the Treasury; (vii) unused Title III funds; (viii) reported unused
funds from Department of Health’s Intellectual Disability program; (ix) reported unused funds
from Department of Correction and Rehabilitation’s (“DCR”) Juvenile program, as certified
jointly by Hacienda and DCR; (x) unused appropriations for milestones and incentives held under
the custody of OMB as approved by the Oversight Board; (xi) unused General Funds intended for
Catastrophic Disease Fund related expenditures; (xii) unused appropriations for the Broadband
infrastructure expansion and 21st Century Technical and Business Education Fund; (xiii) unused
appropriations for the rural area health professionals scholarship and loan forgiveness endowment;
(xiv) unused General Funds from Universal Health Care (“UHC”) contributions; (xv) unused
appropriations for the Municipal Development Fund, Municipal Improvement Fund, and
Municipal Redemption Fund held under the custody of Treasury; (xvi) the American Federation
of State, County and Municipal Employees (“AFSCME”) Bonus floor and the Contingent Value
Instruments (“CVIs”) required under the Plan of Adjustment will be made available until
December 31, 2024; and (xvii) appropriations authorized in FY2024 for economic incentives held
under the custody of the Department of Treasury that have yet to be transferred to the Department
of Economic Development and Commerce (“DDEC,” for its Spanish acronym) will be made
available until December 31, 2025. In addition, this restriction on the use of appropriations of prior
fiscal years shall not apply to: (i) programs financed in whole or in part with federal funds; (ii)
orders by the United States district court with jurisdiction over all matters under Title III of the
Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”); or (iii) matters
pertaining to any consent decree or injunction, or an administrative order or settlement with a
federal agency, with respect to federal programs.
Section 8.- On or before July 31, 2024, the Secretary of the Treasury, Executive Director
of AAFAF, and the Director of the OMB shall provide to the Oversight Board, with a copy to the
Legislative Assembly, a certification indicating the amounts of unused FY2024 appropriations for
all items enumerated in the previous section. If the Government fails to submit said certification,
the amount of unused funds in items (i) and (ii) in Section 7 listed above will not carry over to the
following fiscal year.
Section 9.- Each power of OMB, AAFAF, or the Department of the Treasury, including
the authorities granted under Act 230-1974, as amended, known as the “Puerto Rico Government
Accounting Act” or “Act 230,” to authorize the reprogramming or extension of appropriations of
prior fiscal years, is hereby suspended.
Section 10.- The appropriations approved in this budget may only be reprogrammed with
the prior approval of the Oversight Board. For the avoidance of doubt, this prohibition includes
any reprogramming of any amount, line item or expenditure provided in this budget, regardless of
whether it is an intra-agency reprogramming. Reprogramming, also known as reapportionments,
may be made into spend concepts and / or objects not explicitly listed in the certified budget
resolutions, as long as such requests are submitted to and approved by the Oversight Board in
advance. Reprogrammed funds authorized for the hire of personnel in specialized roles are
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May 16, 2024
Page 25 of 31
restricted for that specific use only and may not be made available, nor may they be used for any
other budgetary needs.
Section 11.- The Governor, through his fiscal component (Department of Treasury, OMB
and AAFAF), must submit to the Oversight Board all reporting requirements set forth on Exhibit
70 of the 2023 Fiscal Plan according to the reporting cadence described therein. In addition, if the
Oversight Board approves a reprogramming pursuant to the sections above, the immediately
subsequent report by the Governor through his fiscal component (Department of Treasury, OMB
and AAFAF) must illustrate the specific implementation of such reprogramming, including the
amount, the source of the reprogrammed amount identified by the Government entity and
expenditure concept, the Government entity that received such amount, and the expenditure
concept to which it was applied.
In addition, the Governor, through his fiscal component (Department of Treasury, OMB
and AAFAF), shall submit to the Oversight Board a comprehensive reporting package in a similar
format to that required in accordance with Section 203(a) of PROMESA for the following
specified programs within different agencies: (i) Department of Education’s (“PRDE”) Special
Education Program; (ii) PRDE’s Remedio Provisional Program; (iii) PRDE’s Career and
Technical Education (iv); Department of Health’s (“DOH”) Adult University Hospital Program;
(v) DOH’s Pediatric University Hospital Program; (vi) DOH’s Bayamón University Hospital
Program; (vii) DOH’s Intellectual Disability Program; (viii) Mental Health and Anti-Addiction
Services Administration’s (“ASSMCA,” for its Spanish acronym) Río Piedras Psychiatric Hospital
Program; and (ix) DCR’s Juvenile Program. Program reporting must include and clearly detail
budget to actuals on a concept-level basis, any reprogramming of funds within the program, and
any reprogramming of funds to/from other programs or agencies.
In addition, the Governor, through his fiscal component (Department of Treasury, OMB
and AAFAF), shall submit to the Oversight Board a monthly reporting package detailing capital
expenditure spending by agency and by project, including details for expenditures which have
RFPs issued, which contracts have been awarded, and which contracts are in process. To the extent
that the Oversight Board requires additional reporting regarding federal funds, it shall notify the
Governor.
The Governor, through his fiscal component (Department of Treasury, OMB and AAFAF),
shall submit to the Oversight Board a monthly reporting package detailing all of PRDE’s salary
and other payroll expenses within four categories: (i) Central Administrative Personnel; (ii)
Regional Administrative Personnel; (iii) Regional School Support Personnel; and (iv) School
Personnel as established in the FY2025 certified budget resolution. In order to assess compliance
and guarantee accountability, PRDE must submit such monthly reporting detailing salary and
payroll expenses by the categories established herein, along with a salaries and payroll
reconciliation of funds disbursed and actual expenses recorded.
Section 12.- To ensure maximum and proper use of federal funds, the Governor shall
submit a work plan before any disbursement of funds from programs such as, but not limited to:
(i) the Disaster Relief Fund (“DRF”); (ii) the Coronavirus Aid, Relief, and Economic Security Act
Hon. Pierluisi
May 16, 2024
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(“CARES”); (iii) the Families First Coronavirus Response Act (“FFCRA”); (iv) the Coronavirus
Response and Relief Supplemental Appropriations Act (“CRRSAA”); and (v) the American
Rescue Plan (“ARP”). Improved reporting will help prevent and combat misuse, fraud, waste, and
abuse, or such claims. Therefore, the Governor, through his fiscal component (Department of
Treasury, OMB and AAFAF), shall also submit to the Oversight Board any report that the
Commonwealth government (i) provides to the federal government or (ii) creates internally. Such
reports shall be provided to the Oversight Board at the same time that they are provided to the
federal government or circulated internally within the Commonwealth government. The Governor,
through his fiscal component (Department of Treasury, OMB and AAFAF), shall also provide, as
requested, performance metrics including but not limited to: (i) time required to submit claims; (ii)
time required to submit compliance reporting; and (iii) time required to collect reimbursement
claims.
The reports required pursuant to this section are in addition to the reports that the Governor,
through his fiscal component (Department of Treasury, OMB and AAFAF), must submit to the
Oversight Board in accordance with Section 203 of PROMESA.
Section 13.- In conjunction with the reports that the Governor must submit to the Oversight
Board no later than 15 days after the last day of each quarter of FY2025, pursuant to Section 203(a)
of PROMESA, the Secretary of the Treasury, Executive Director of AAFAF, and the Director of
the OMB shall each certify to the Oversight Board: (i) that no appropriation of any previous fiscal
year (except for the appropriations covered by the exceptions in the sections above) have been or
will be used to cover any expense; and (ii) the Director of the OMB shall certify to the Oversight
Board that no amount of the unallocated capital expenditures under the custody of OMB has been
obligated, unless authorized in accordance with the section below.
Section 14.- The Emergency Reserve, the unallocated capital expenditures, health care
investments reserve, milestones reserve, payroll reserve, Civil Service Reform (“CSR”) reserve,
utility / Puerto Rico Electric Power Authority (“PREPA”) legacy charge reserve, and the economic
incentive fund under the custody accounts of OMB and the Department of the Treasury, as detailed
in the certified budgets from FY2020 through FY2025 may not be used to cover any allocation or
expense whatsoever without the prior written approval of the Oversight Board. If Federal
Emergency Management Agency (“FEMA”) funding is not available for capital expenditures, a
transfer from unallocated capital expenditures may be requested.
Section 15.- The Emergency Reserve is intended to expedite response activities to

emergencies, and, upon request, to provide the Commonwealth Agencies and affected municipal
governments with capital in the event of an emergency of such severity and magnitude that
effective response exceeds the capacity of current budget resources and federal disaster assistance
is not available or not yet available to respond to the emergency. Moreover, the Emergency
Reserve is only intended for extraordinary events like natural disasters or as otherwise agreed with
the Oversight Board, and that are generally outside of human control and unpreventable. The
Emergency Fund is not intended to mitigate emergencies related to operational inefficiencies.
Hon. Pierluisi
May 16, 2024
Page 27 of 31
Accessing Emergency Reserve funds shall require: (i) a State of Emergency declaration,
by the Governor of the Commonwealth, in accordance with Article 6.10 of Act 20-2017, as
amended, known as the “Puerto Rico Public Safety Department Act,” and in accordance with the
above description of what constitutes an extraordinary event; (ii) OMB to make a request to the
Oversight Board for access to the emergency reserve fund for a finite period, indicating the agency
or local government that will receive the advance, the amount of the advance, usage of funds
requested, and the PR Emergency Disaster Management (“PREMA”) request number from Web
Emergency Operations Center (“WEBEOC”) platform as well as the projected repayment date of
the funds; (iii) amounts approved by the Oversight Board and disbursed to the Government shall
be replenished not later than the following fiscal year; and (iv) agencies and municipalities,
recipients of state emergency reserve funds, shall update OMB on a quarterly basis about the Public
Assistance process with FEMA.
OMB shall request Emergency Reserve funds exclusively for the use of Government
agencies and affected local governments. The agencies and affected local governments must be in
an emergency-declared area as described above and the Emergency Reserve funds must be used
for response activities related to the declared event. Non-profits, public corporations outside of the
Commonwealth, and individuals are not eligible applicants for advances through the Emergency
Reserve fund.
OMB shall submit quarterly reports to the Oversight Board detailing the status of
Emergency Reserve funds, amounts provided to agencies and affected local governments, amount
of funds expended, amount of funds remaining, and updated projected re-payment dates. Agencies
and municipal governments that received funds from the Emergency Reserve are required to file
with FEMA a Request for Public Assistance (“RPA”) and a Project Worksheet to ensure maximum
federal fund reimbursements are replenished into the Emergency Reserve. As a rule, OMB shall
offset late repayment by agencies and local governments with other Commonwealth funding to
repay the Emergency Reserve on time.
Section 16.- Cost share matching funds are restricted for use on approved projects /
requirements under FEMA’s Individual Assistance, Public Assistance, and Hazard Mitigation
programs. Unused cost share matching funds in a given fiscal year may be rolled over to the
following fiscal year and are subject to the same restrictions. The use of these funds must be
coordinated with Community Development Block Grant Disaster Recovery (“CDBG-DR”) and
Community Development Block Grant Mitigation (“CDBG-MIT”) in meeting cost share
requirements.
Section 17.- The amount of $66,000,000 is set aside from the Municipal Consolidation
Fund, as established in the 2023 Fiscal Plan, to finance the operation of the municipalities and
provide essential services to the residents of the municipalities of Puerto Rico. These services
include: safety and security services through the Municipal Police; financing the municipal
structure for emergency management and disaster; delivery of medications and distribution of non-
perishable food for the elderly and persons with disabilities; paving secondary and tertiary streets;
equipment aimed at the maintenance of health and treatment of adverse health conditions;
equipment for persons with mobility impairments; services aimed at serving the population of
Hon. Pierluisi
May 16, 2024
Page 28 of 31
children, youth and the elderly, such as housekeeping, childcare for working parents, temporary
subsidy of electricity costs for assisted breathing equipment, as well as the acquisition of movable
equipment in the event of a duly accredited emergency, equipment for the maintenance of
infrastructure, natural resources and green areas in the communities, school and sports materials;
among others, subject to the approval of a legislation that restructures the current inventory tax
model. Funding set aside is intended to hold certain municipalities harmless impacted by the
legislative changes to the inventory tax based on a threshold to be determined by the Oversight
Board.
Section 18.- The FY2025 total budget allocated for the Department of Health’s Intellectual
Disability program will be the current budget appropriation of $69,816,000, plus any of the
program’s unused “roll-over” funds from prior fiscal years.
Section 19.- Additional General Funds may be made available to agencies upon reaching
certain, specified milestones and after written approval and authorization from the Oversight
Board. Once respective milestones are achieved, agencies must provide a formal notice and submit
supporting data corroborating such achievement to the Oversight Board for its review. The
subsections below detail the allowable milestones and incentives for each relevant agency.
A. Department of Education (“PRDE”) Milestone and Incentives

1. Milestone: PRDE must successfully complete the Special Education
Coordinators initiative pilot program meeting predefined performance targets
and key performance indicators (KPIs). In collaboration with the Oversight
Board, PRDE must establish KPIs and specific targets to enhance the Special
Education Program. These measures will aim to expand the services offered,
assess the needs of students, and ensure that services are provided based on
necessity and effectiveness.
a. Incentive: $3,965,000 in payroll to hire 96 additional coordinators to
expand the Special Education Coordinators pilot program.
b. Total Available Funds: $3,965,000
B. Department of Labor and Human Resources Milestones and Incentives

1. Milestone: Provide support that the Minimum Wage Commission consistent
with Act 47-2021 has been created.
a. Incentive: $205,000 in payroll and $103,000 in operating expenses to
support the creation of the Minimum Wage Commission consistent with
Act 47-2021.
b. Total Available Funds: $308,000
C. University of Puerto Rico Comprehensive Cancer Center Milestones and Incentives

1. Milestone: The Cancer Center must increase its collections to ≥ 80% of what
has been billed and demonstrate this has been achieved for at least two
consecutive months.
a. Incentive: $4,344,000 to support the Cancer Center to complete all its
initiatives, become self-sufficient and rely on its own revenues.
Hon. Pierluisi
May 16, 2024
Page 29 of 31
D. Legislative Assembly Milestones and Incentives

1. Milestone: Comply with applicable monthly reporting requirements.
a. Incentive: $1,538,000 to continue funding an increase in payroll
originally approved in FY2022.
E. Department of Natural and Environmental Resources (“DNER”) Milestones and

Incentives
1. Milestone: Provide reports to the Oversight Board demonstrating progress on
DNER’s FEMA projects related to water pumps, including the status of requests
for FEMA to cover the costs of leasing the portable pumps. The progress reports
should accompany any Budget Reprograming Request that would be submitted
to access these funds. DNER will reimburse the General Fund when FEMA
funds are received.
a. Incentive: $15,000,000 to cover the cost of leasing portable water
pumps.
F. Poverty Advisory Commission Milestones and Incentives

1. Milestone: Provide a decennial plan to the Oversight Board.
a. Incentive: $1,200,000 to support the operating expenses of the Poverty
Advisory Commission created by Act 84-2021.
Section 20.- Funds to provide support for essential services and programs to the most
vulnerable municipalities. Funds to be deployed for funding critical community needs. Funds will
be made available to OMB to directly distribute to municipalities in accordance with the eligibility
guidelines developed by OMB, which shall be subject to approval and authorization from the
Oversight Board.
A. Develop and propose an updated needs-based assessment and supporting analysis for
the equitable distribution of essential service funding for the most vulnerable
municipalities. Funds shall be held under the Custody of OMB until a revised proposal
of the methodology, eligibility requirements, and fund administration guidelines are
submitted to the Oversight Board on or before August 30, 2024 and the proposal is
subsequently reviewed and approved by the Oversight Board.
Section 21.- Consistent with the stated requirements in the certified budget resolutions and
Certified Fiscal Plan, funds to cover parametric insurance will be made available to renew
coverage or purchase additional coverage to comply with FEMA Operations & Maintenance
(“O&M”) requirements, after the approval and authorization from the Oversight Board.
Hon. Pierluisi
May 16, 2024
Page 30 of 31
Section 22.- As a rule, necessary for the responsible disbursement of budgetary allocations
for operating and other expenses, OMB shall withhold from any of the allocations to the agencies
of the Executive Branch the amounts necessary to pay for the PayGo contribution, unemployment
insurance, or taxes withheld from their employees, when OMB determines that such a withholding
is necessary to ensure compliance with these obligations by the agencies concerned. Any such
amounts withheld by OMB shall solely be reprogrammed to pay the corresponding outstanding
obligations related to PayGo contributions, unemployment insurance, or taxes withheld from
employees.
Section 23.- OMB and the Department of the Treasury are authorized to establish the
necessary mechanisms to ensure that when implementing the concept of mobility, pursuant to the
provisions of Act 8-2017, as amended, known as the “Puerto Rico Human Resources Management
and Transformation in the Government Act,” the corresponding transfer of funds allocated to
payroll and related costs of said employee are to be carried out simultaneously.
Section 24.- The Secretary of the Treasury, the Director of the OMB, and the Finance
Director and Executive Director of each agency or public corporation covered by the 2023 Fiscal
Plan will be responsible for not spending or encumbering during FY2025 any amount that exceeds
the appropriations authorized for FY2025. This prohibition applies to every appropriation set forth
in a budget certified by the Oversight Board, including appropriations for payroll and related costs.
The Executive Director of AAFAF and the Director of the OMB shall also certify to the Oversight
Board, with a copy to the Legislative Assembly, by September 30, 2024, that no amount was spent
or encumbered that exceeded the appropriations in the certified budget for FY2024.
Section 25.- For the avoidance of doubt, any reference within the budget to AAFAF, the
Department of the Treasury, or OMB, or any of their respective officers, applies to any successor
thereof.
Section 26.- On or before July 31, 2024, the Governor shall provide to the Oversight Board
budget projections of General Fund revenues and expenditures for each quarter of FY2025, which
must be consistent with the corresponding budget certified by the Oversight Board (the “Quarterly
Budget”). The Quarterly Budget shall be provided to the Oversight Board in Excel format and
include detailed allocations by agency, public corporation, fund type and concept of spend.
Together with the report that the Governor must provide under Section 203 of PROMESA not later
than 15 days after the last day of each quarter, the Governor shall provide a quarterly variance
analysis that is consistent with modified accrual accounting.
Section 27.- Consistent with the stated requirements in the certified budget resolutions, the
PREPA Employee Pension funds held under the Custody of OMB shall only be released after
AAFAF provides such documentation, to the satisfaction of the Oversight Board.
Section 28.- Police Retirement Act 106 Defined Contribution held under the Custody of
OMB shall only be released upon approval from the Oversight Board.
Hon. Pierluisi
May 16, 2024
Page 31 of 31
Section 29.- Pursuant to Section 204(b)(2) of PROMESA, since November 6, 2017 (and as
last modified on April 30, 2021), the Oversight Board has maintained a Contract Review Policy
(the “Policy”) which requires prior Oversight Board review and approval of contracts with an
aggregate value of $10 million or more to assure that they “promote market competition” and “are
not inconsistent with the approved fiscal plan.” The Policy applies to any contract or series of
related contracts, inclusive of any amendments, modifications or extensions, with an aggregate
expected value of $10 million or more, that is proposed to be entered into by the Commonwealth
(which includes the Executive, Legislative, and Judicial branches of government) or any covered
instrumentality. Notably, the Policy considers (i) the aggregate expected value of contracts or
amendments across fiscal years; and (ii) contracts or amendments that cause the aggregate value
of active contracts with the same contractor or its affiliates to reach $10 million or more in a
particular fiscal year, regardless of the nature of services. In addition, the Oversight Board may
select to review contracts below the $10 million threshold for these purposes, on a random basis
or at its own discretion. Specifically, in the case of PREPA, the contract review threshold has been
reduced to $250,000 exclusively for contracts which are payable from PREPA’s “Professional &
Technical Outsourced Services” and “PREPA Restructuring and Title III” budget line items.
Consequently, all proposed contracts (or series of related contracts) that meet such threshold and
are classified as Consulting Services Contracts by the Office of the Comptroller of Puerto Rico
(and any applicable sub-categories) must be submitted to the Oversight Board for review and
approval prior to execution. For all other PREPA contracts, the Oversight Board maintains the
current $10 million threshold as well as its ability to review contracts at its discretion. Similarly,
in the case of UPR, the Oversight Board lowered the UPR’s contract review threshold to $2 million
for all contracts. Finally, to further ensure certain contracts promote market competition, the
Oversight Board may require, at its own discretion, the Commonwealth or any covered
instrumentality, to keep the Oversight Board appraised of the ongoing procurement processes for
the execution of new contracts.
Conclusion
Per the requirements of PROMESA § 202(c)(1)(B)(ii), the Oversight Board provides the
Government with an opportunity to correct the issues by submitting a Revised Proposed FY25
Budget to the Oversight Board no later than May 21, 2024.
The Oversight Board looks forward to working together to certify a Commonwealth FY25 Budget
by June 30, 2024.
Sincerely,
Robert F. Mujica, Jr.

Executive Director
CC: Hon. Omar J. Marrero Díaz

Mr. Nelson J. Pérez Méndez
Mr. Juan C. Blanco Urrutia
APPENDIX A
(Page A-1)
Budget Support Deliverables for May 21, 2024
1. Draft budget resolutions

a. General Fund resolution, including the Special Resolution, with concept of spend
details for each appropriation
b. Special Revenue Fund resolution
2. Budget ‘Sabana’ file for all fund types
3. Breakout of each agencies’ concept and object of spend, mirroring the same level of detail
included in Appendix B
APPENDIX B
(Page B-1)
(See FY25 Revised Budget Targets Excel sheet)

Oversight Board FY25 Budget Targets DRAFT - Subject to Material Change
Revised Budget Targets Privileged and Confidential
May 15, 2024
In Thousands
Total 3,688,528 5,829,909 6,616 6,616 167,234 84,173 55,807 133,435 727,115 255,775 740,128 3,263,484 10,801 10,801 40,940 14,441 46,771 4,193 181,633 12,523
Subtotal 3,688,528 5,829,909 6,616 6,616 167,234 84,173 55,807 133,435 727,115 255,775 740,128 3,263,484 10,801 10,801 40,940 14,441 46,771 4,193 181,633 12,523
Targets
General Fund Special Revenue Funds
Law 80 Law 80
Law 80 PRT* Law 80 PRT*
# Agency Name Grouping Payroll OpEx PayGo PREPA PRASA PRIMAS PBA Medicaid CapEx Payroll OpEx PayGo PREPA PRASA PRIMAS PBA Medicaid CapEx
Contributions Contributions
8 Office of the Comptroller Transparency & Control Entities 32,413 8,674 136 136 182 12 76 - - - - - - - - - - - - -
10 The General Court of Justice Courts & Legislature 226,904 60,336 - - 9,058 1,563 699 12,102 - - 4,202 10,854 - - 1,160 270 967 - - -
11 Puerto Rico Traffic Safety Commission Public Works - - - - - - - - - - 1,297 184 - - - - 12 12 - -
15 Office of the Governor Executive Office 10,502 2,199 - - 1,011 292 121 - - - - - - - - - - - - -
16 Office of Management and Budget Treasury/Office of the Chief Financial Officer 9,753 4,635 - - 155 113 94 - - - 507 692 - - - - - - - -
17 Appropriations under the custody of the OMB Custody Accounts 259,787 743,879 - - 33,921 - - - - 249,175 - - - - - - - - - -
18 Puerto Rico Planning Board Economic Development 6,485 4,020 935 935 - - 40 1,025 - - - - - - - - - - - -
21 Emergency and Disaster Management Bureau Department of Public Safety 3,505 4,247 - - 298 100 124 39 - - - 338 - - - 3 - - - -
22 Office of The Commissioner of Insurance Finance Commission - - - - - - - - - - 6,232 5,232 47 47 - - 120 - - -
23 Puerto Rico Department of State State 3,664 9,241 142 142 242 38 214 147 - - 2,280 2,283 - - - - - - - -
24 Puerto Rico Department of Treasury Treasury/Office of the Chief Financial Officer 76,449 72,736 168 168 1,916 361 5,456 6,873 - - 9,151 792,335 - - 795 121 - 1,541 - -
25 Appropriations under the custody of the Treasury Custody Accounts 21,739 2,592,977 - - - - - - - - - 156,194 - - - - - - - -
28 State Elections Commission Independent Agencies 20,451 31,600 42 42 1,594 128 274 1,210 - - - - - - - - - - - -
29 Puerto Rico Federal Affairs Administration Executive Office 1,362 1,314 - - - - 1 - - - - - - - - - - - - -
30 Human Resources Management & Transformation Treasury/Office of the Chief Financial Officer 4,966 1,052 75 75 - 1 8 - - - 816 916 - - - - 9 - - -
31 General Services Administration Treasury/Office of the Chief Financial Officer 7,021 7,788 - - - - - - - - 1,161 3,025 - - 137 193 336 401 - -
34 Commission of Investigation, Processing and Appe Labor 337 48 - - 12 2 13 - - - - - - - - - - - - -
37 Civil Rights Commission Independent Agencies 460 343 - - - - 7 - - - - - - - - - - - - -
38 Puerto Rico Department of Justice Justice 91,242 17,836 130 130 1,950 646 308 2,732 - - 1,201 5,309 - - - - - - - -
40 Puerto Rico Police Bureau Department of Public Safety 739,630 96,109 - - 8,287 2,745 4,072 14,117 - 6,600 8,174 9,131 - - 1,096 87 - - - -
41 Special Investigations Bureau Department of Public Safety 4,637 711 - - - 5 7 - - - - - - - - - - - - -
42 Puerto Rico Fire Department Bureau Department of Public Safety 63,786 5,128 - - 897 749 1,219 392 - - 14,469 56 - - 116 23 25 - - -
43 Puerto Rico National Guard Independent Agencies 6,948 4,558 22 22 882 173 1,098 - - - - - - - - - - - - -
45 Puerto Rico Department of Public Safety Department of Public Safety 41,229 1,069 352 352 - - 119 - - - 189 33 - - - - - - - -
49 Department of Transportation and Public Works Public Works 26,000 12,129 161 161 1,569 257 672 1,537 - - 23,621 104,756 - - 408 423 111 - - 12,523
50 Department of Natural and Environmental ResourceEnvironmental 40,845 39,053 517 517 2,681 4,458 8,798 106 - - 7,374 38,547 - - 117 50 13 - - -
55 Puerto Rico Department of Agriculture Agriculture 9,367 15,425 13 13 - 73 122 391 - - 2,413 967 - - - - - - - -
60 Office of the Citizen’s Ombudsman Independent Agencies 2,362 773 28 28 3 1 11 50 - - - - - - - - - - - -
62 Cooperative Development Commission of Puerto RIndependent Agencies 1,607 356 - - - - 13 44 - - - - - - - - - - - -
67 Puerto Rico Department of Labor and Human ResoLabor 2,425 452 110 110 799 200 933 75 - - 30,852 269,095 - - 354 121 57 372 - -
68 Puerto Rico Labor Relations Board Labor 668 10 - - 31 - 4 - - - 161 301 - - - - - - - -
69 Puerto Rico Department of Consumer Affairs Independent Agencies 7,936 - 57 57 37 2 - 746 - - 574 1,374 - - - - 48 - - -
70 State Insurance Fund Corporation Other - - - - - - - - - - 189,956 276,775 3,190 3,190 5,904 772 - 176 - -
71 Department of Health Health 96,927 257,590 100 100 13,746 4,846 8,492 1,552 - - 13,087 158,690 - - 393 7 265 36 - -
75 Office of the Financial Institutions Commissioner Finance Commission - - - - - - - - - - 8,616 4,368 - - - - 55 - - -
78 Department of Housing Housing 12,582 222 - - 1,226 153 617 - - - 849 23,769 - - 197 544 - - - -
79 Automobile Accidents Compensation AdministrationOther - - - - - - - - - - 27,535 53,879 - - 610 178 623 - - -
81 Department of Education Education 1,263,991 325,309 549 549 43,487 31,787 8,362 78,271 - - 1,083 8,198 - - - - - - - -
82 Institute of Puerto Rican Culture Culture 6,175 5,499 - - 1,940 243 974 - - - - 1,283 - - - - - - - -
87 Department of Recreation and Sports Independent Agencies 16,579 3,354 42 42 1,476 3,364 1,756 - - - - 21,976 - - - - - - - -
90 Medical Services Administration of Puerto Rico Health 29,690 32,859 - - 5,468 3,738 - - - - 95,506 46,884 - - - - 1,338 - - -
95 Mental Health and Drug Addiction Services AdminisHealth 24,074 80,317 313 313 3,441 2,106 563 288 - - - 6,322 - - - - - - - -
96 Office of the Women’s Advocate Ombudsman 2,065 2,787 - - 47 - 8 - - - - - - - - - - - - -
100 Legislative Assembly of the Commonwealth Courts & Legislature - 112,614 40 40 3,164 680 - 29 - - - - - - - - - - - -
105 Industrial Commission Independent Agencies - - - - - - - - - - 11,647 5,655 184 184 131 - 70 - - -
106 Public Housing Administration Housing 3,072 - - - - - - - - - 157 15,366 - - - - - - - -
109 Puerto Rico School of Plastic Arts Universities 1,396 12 89 89 268 363 329 - - - 444 1,821 - - 16 38 - - - -
119 Department of Economic Development & CommercEconomic Development 4,341 7,065 697 697 - - - - - - 21,157 18,494 1,481 1,481 462 645 443 764 - -
120 Veteran's Advocate Office of Puerto Rico Ombudsman 703 3,027 - - - - 87 - - - - - - - - - - - - -
121 9-1-1 Emergency Systems Bureau Department of Public Safety - - - - - - - - - - 10,344 10,764 62 62 172 12 146 - - -
122 Secretariat of the Department of the Family Families & Children 14,188 4,306 - - 3,949 400 290 6,453 - - - - - - - - - - - -
123 Family and Children Administration Families & Children 60,809 137,612 - - 139 63 226 40 - - - - - - - - - - - -
124 Child Support Administration Families & Children 6,860 7,380 - - 82 - 32 24 - - - - - - - - - - - -
126 Vocational Rehabilitation Administration Labor 2,762 12,045 - - 326 60 356 123 - - 470 332 - - - - - - - -
127 Administration for Socioeconomic Development of t Families & Children 30,926 32,258 53 53 - 37 - - - - - - - - - - - - - -
137 Department of Correction and Rehabilitation Corrections 227,075 79,596 187 187 16,071 23,306 4,716 3,422 - - - 23,271 - - - - - - - -
138 Institutional Trust of the National Guard of Puerto RClosures - per the government’s reorganization - - - - - - - - - - 617 7,112 - - 88 39 - - - -
139 Parole Board Justice 2,339 184 43 43 - - 17 - - - - - - - - - - - - -
143 Office of Protection and Defense for People with Di Ombudsman 689 188 - - - - - - - - - - - - - - - - - -
152 Elderly and Retired People Advocate Office Ombudsman 960 2,100 - - 9 1 19 - - - - - - - - - - - - -
153 Office for People with Disabilities Ombudsman 2,565 852 - - - - 15 82 - - - - - - - - - - - -
155 State Historic Preservation Office of Puerto Rico Executive Office 1,338 142 - - 267 287 149 - - - - 953 - - 113 92 - - - -
161 Puerto Rico Infrastructure Financing Authority Executive Office 1,999 83 - - - - - - - - - 1,138 - - - - - - - -
162 Public Building Authority Executive Office - - - - - - - - - - 68,431 25,585 876 876 13,354 1,987 15,872 - - -
165 Land Authority Land - - - - - - - - - - 5,630 1,783 484 484 375 26 48 - - -
167 Integral Development of the “Península de Cantera Independent Agencies 452 26 - - 27 7 87 - - - 60 168 - - - - - - - -
168 Puerto Rico Ports Authority Public Works - - - - - - - - - - 18,000 13,305 2,354 2,354 3,535 4,600 13,984 - - -
176 University of Puerto Rico UPR - 500,883 - - - - - - - - - - - - - - - - - -
177 Land Authority of Puerto Rico Land - - - - - - - - - - 3,547 1,696 212 212 299 12 650 - - -
180 Puerto Rico Tourism Company Economic Development - - - - - - - - - - 11,968 130,771 416 416 387 172 503 - - -
186 Culebra Conservation and Development Authority Closures - per the government’s reorganization 145 56 - - 14 20 - - - - 211 92 - - - - - - - -
187 Puerto Rico Health Insurance Administration Health 4,650 14,505 - - - - 414 - 727,115 - - - - - - - - - 181,633 -
188 Cardiovascular Center Corporation of Puerto Rico aHealth - - - - - - - - - - 32,148 52,053 - - 3,398 842 - 872 - -
189 Forensic Science Bureau Department of Public Safety 13,409 3,610 - - 1,046 113 - - - - - 367 - - 135 4 - - - -
191 Musical Arts Corporation Culture 4,187 723 - - - - 76 - - - 556 1,332 - - - - - - - -
192 Fine Arts Center Corporation Culture 854 932 111 111 811 87 724 - - - 1,120 725 - - 397 125 267 - - -
193 Office of Government Ethics Transparency & Control Entities 7,616 1,458 107 107 49 4 93 - - - - - - - - - - - - -
195 Economic Development Bank of PR Closures - per the government’s reorganization - - - - - - - - - - 7,891 3,733 - - 396 57 389 - - -
196 Puerto Rico Public Broadcasting Corporation Closures - per the government’s reorganization - - - - - - - - - - - - 170 170 - - - - - -
198 Agricultural Insurance Corporation Agriculture - - - - - - - - - - 1,279 1,545 35 35 - - 201 - - -
200 Special Independent Prosecutor's Panel Independent Agencies 1,428 2,020 - - - - 12 - - - - - - - - - - - - -
208 Contributions to the Municipalities Municipalities - 61,536 - - - - - - - - - - - - - - - - - -
209 Contributions to Political Parties Independent Agencies - 14,000 - - - - - - - - - - - - - - - - - -
215 Puerto Rico Conservatory of Music Corporation Universities 2,977 846 - - 744 28 - - - - 2,541 1,593 - - 15 5 - - - -
220 Correctional Health Corrections 15,632 36,157 - - - - - - - - - - - - - - - - - -
221 Medical Emergency Corps Bureau Department of Public Safety 19,451 1,096 - - 155 41 425 104 - - 1,890 6,059 - - 20 1 - - - -
231 Office for the Patient's Advocate Ombudsman 1,467 385 - - - - 8 - - - - - - - - - - - - -
235 Puerto Rico Housing Finance Corporation Housing - 8,203 - - - - - - - - 11,765 84,439 - - - - - - - -
236 Innovation Fund for Agricultural Development of PuLand - - - - - - - - - - 1,455 12,174 - - - - 36 - - -
238 Ponce Authority (Authority Of The Port Of The AmeIndependent Agencies - 172 - - - - - - - - - - - - - - - - - -
241 Administration for Integral Development of ChildhooFamilies & Children 2,447 6,956 - - 204 38 10 254 - - - - - - - - - - - -
264 Corporation for the "Caño Martin Peña" Enlace ProjIndependent Agencies 2,081 1,407 - - 19 8 67 - - - - - - - - - - - - -
265 Redevelopment Authority of Roosevelt Roads Economic Development 476 472 - - 174 - - - - - 502 1,358 - - - - - - - -
268 Puerto Rico Institute of Statistics Independent Agencies 1,569 1,250 - - 58 - 12 - - - - - - - - - - - - -
271 Puerto Rico Technology and Innovation Services Independent Agencies 4,176 68,910 - - - 2 30 - - - - 9,732 - - - - - - - -
Oversight Board FY25 Budget Targets DRAFT - Subject to Material Change
Revised Budget Targets Privileged and Confidential
May 15, 2024
In Thousands
Total 3,688,528 5,829,909 6,616 6,616 167,234 84,173 55,807 133,435 727,115 255,775 740,128 3,263,484 10,801 10,801 40,940 14,441 46,771 4,193 181,633 12,523
Subtotal 3,688,528 5,829,909 6,616 6,616 167,234 84,173 55,807 133,435 727,115 255,775 740,128 3,263,484 10,801 10,801 40,940 14,441 46,771 4,193 181,633 12,523
Targets
General Fund Special Revenue Funds
Law 80 Law 80
Law 80 PRT* Law 80 PRT*
# Agency Name Grouping Payroll OpEx PayGo PREPA PRASA PRIMAS PBA Medicaid CapEx Payroll OpEx PayGo PREPA PRASA PRIMAS PBA Medicaid CapEx
272 Office of the Inspector General Independent Agencies 15,135 4,293 - - - - - - - - - - - - - - - - - -
276 Puerto Rico Public Private Partnership Authority Executive Office 2,296 24,184 63 63 - - - - - - - - - - - - - - - -
277 Agricultural Enterprises Development Administratio Agriculture 2,497 60,422 407 407 195 139 108 14 - - 9,224 78,505 1,290 1,290 110 82 - - - -
279 Public Service Appeals Commission Labor 2,233 356 - - - - - - - - - - - - - - - - - -
281 Office of the Election Comptroller Independent Agencies 2,734 286 - - - - 9 - - - - - - - - - - - - -
285 Puerto Rico Integrated Transit Authority Public Works - 51,622 - - - - 32 - - - 24,298 10,325 - - 1,064 - 3,823 - - -
286 Authority of the Port of Ponce Independent Agencies 137 307 - - - - - - - - 1,867 295 - - - - - - - -
288 University of Puerto Rico Comprehensive Cancer CHealth 9,628 4,891 - - 2,476 282 240 - - - 13,961 31,790 - - 1,392 110 - - - -
293 Center for Diabetes Health 342 450 - - - 11 - - - - - 267 - - - - - - - -
295 Fiscal Agency & Financial Advisory Authority Treasury/Office of the Chief Financial Officer 9,456 25,497 285 285 - - - 589 - - - 8,585 - - - - - - - -
297 Financial Oversight and Management Board for Pu Other - 59,401 - - - - - - - - - - - - - - - - - -
298 Public Service Regulatory Board Utilities Commission 1,907 278 561 561 - - - - - - 10,429 20,380 - - - 36 246 19 - -
303 Convention Center of District Authority Independent Agencies - - - - - - - - - - 1,128 35,336 - - 3,794 2,764 5,740 - - -
310 Municipal Finance Corporation Instrumentality - - - - - - - - - - 634 221,102 - - - - 374 - - -
311 Puerto Rico Gaming Commission Independent Agencies 823 241 81 81 42 9 13 - - - 13,451 416,402 - - - - - - - -
312 Retirement Board of the Government of Puerto Ric Independent Agencies 17,319 25,212 - - 581 27 1,920 510 - - - 3,315 - - - - - - - -
329 Office of Socioeconomic Development Executive Office 2,419 768 - - 8 4 16 94 - - - - - - - - - - - -
Subtotal Operational Targets 3,688,528 5,829,909 6,616 6,616 167,234 84,173 55,807 133,435 727,115 255,775 740,128 3,263,484 10,801 10,801 40,940 14,441 46,771 4,193 181,633 12,523
Exogenous Items GF SRF

PayGo (excluding incremental Law 80 contributions) 2,107,094 510,572
Subtotal Exogenous Items 2,107,094 510,572
Total FY25 Budget Targets 13,062,302 5,199,574
*"PRT" refers to contributions to the Pension Reserve Trust
General Fund Notes:

- The payroll savings as a result of Act 80 are incorporated in the budgetary targets. Additionally, the contributions to the Pension Reserve Trust as a result of Act 80 are shown separately from OpEx to provide additional clarity.
- PayGo targets exclude the impact of Act 80, which is reflected as a separate allocation in the above targets that should be added to each agency's PayGo allocation.
- Act 60 Incentive Funds are budgeted in SRF under the Custody of the Treasury. In FY24, Act 60 incentives were budgeted in the GF.
- CapEx under the Custody of OMB includes $10m to support the ERP system implementation and $239m in unallocated CapEx
Special Revenue Fund Notes:

- The Department of Labor and Human Resources includes $280m for unemployment funds
- The Traditional Lottery and Electronic Lottery are budgeted under the Department of Treasury

FOMB - Letter - Governor - CW FY25 Budget NoV - May 16, 2024

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FOMB - Letter - Governor - CW FY25 Budget NoV - May 16, 2024

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BY ELECTRONIC MAIL

May 16, 2024

The Honorable Pedro R. Pierluisi

Dear Governor Pierluisi:

This letter serves as a Notice of Violation (“NOV”) pursuant to Section 202(c)(1)(B) of

Government’s Proposed FY25 Budget Submission

Government’s Compliant FY25 Budget Requests

• Appropriation under the Custody of OMB – Hogares: $15 million

• Contributions to Political Parties: $14 million

• Department of Education: $13.6 million

• University of Puerto Rico Comprehensive Cancer Center: $6.8 million

• Appropriation under the Custody of OMB – DNER Maintenance Reserve: $6 million

• Puerto Rico Fire Department Bureau: $3.2 million

• Medical Emergency Corps Bureau: $2 million

• Appropriation under the Custody of OMB – Building Resilient Infrastructure Communities

• Appropriation under the Custody of OMB – Funding for Municipalities

• Commonwealth State Elections Commission

• Family and Children Administration (“ADFAN”)

• Puerto Rico Technology and Innovation Services (“PRITS”)

• Appropriation under the Custody of OMB – Special Education Facilitators

• Puerto Rico Police Department

• Mental Health and Drug Addiction Services Administration (“ASSMCA”)

(recurring), $11.5 million to give continuity to specialized practitioners’ contracts

• Puerto Rico Department of State

• Administration for Socioeconomic Development of the Family (“ADSEF”)

• Puerto Rico Department of Justice

• Correctional Health Services Corporation (“CHSC”)

• Administration for the Childhood Care and Integral Development (“ACUDEN”)

• Appropriation under the Custody of OMB – Municipal Territorial Plans

• Puerto Rico Planning Board

• Puerto Rico Office of Human Resources Management and Transformation

• Office of the Citizen’s Ombudsman

Government’s Denied Non-Compliant FY25 Budget Requests

• Contributions to the Municipalities: $80 million

request will be revaluated if sufficient information is provided during FY25

• Appropriation under the Custody of OMB – Initiative to Decentralize the Department of

• Puerto Rico Department of Agriculture: $15.5 million

o Reason for Non-Compliance Determination: adequate information was not provided

• Puerto Rico Department of Transportation and Public Works: $10 million

• Office of the Women’s Advocate: $4 million

• Appropriation under the Custody of OMB – Vacation Liquidation of Trust Employees: $4

• Forensic Sciences Institute: $2.5 million increase

• Secretariat of the Department of the Family (“DOF”): $1.5 million

• Office of the Governor: $400 thousand

• Department of Correction and Rehabilitation: $11.8 million

FY25 Revised Budget Targets

• Commonwealth State Elections Commission: $3.5 million decrease

• Department of Correction and Rehabilitation: $1.1 million increase

• Department of Health (“DOH”): $16.7 million increase

• Puerto Rico Police Department: $8.2 million increase

• Department of Education: $110.7 million increase

• Puerto Rico Department of Justice: $2.8 million increase

• Office of the Women’s Advocate: $30 thousand increase

• Fire Bureau of Puerto Rico: $5.4 million increase

• Puerto Rico Planning Board: $2.9 million increase

• Medical Emergency Corps Bureau: $28 thousand increase

• Office of the Governor: $115 thousand increase

• Medical Services Administration of Puerto Rico (“ASEM”): $20.1 million increase

• Puerto Rico Department of the Treasury: $962 thousand increase

• Fiscal Agency and Financial Advisory Authority: $9.1 million increase

• Department of Recreation and Sports: $2.1 million increase

• Puerto Rico Health Insurance Administration (“ASES”): $7 million decrease

• Retirement Board of the Government of Puerto Rico: $3.9 million decrease

• Office for People with Disabilities: $1.5 million increase