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Governor González presents balanced budget, proposes $387 million municipal aid and one-time rescue funds

May 30, 2025 | House of Representatives, House, Committees, Legislative, Puerto Rico


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Governor González presents balanced budget, proposes $387 million municipal aid and one-time rescue funds
Governor Jennifer González delivered a state-of-the-state address to a joint session of the Legislative Assembly on May 29, 2025, presenting a budget she described as balanced and certified by the Financial Oversight and Management Board (Junta de Supervisión Fiscal) under Section 209 of the PROMESA law.

The governor said the administration had produced "a presupuesto balanceado" and presented it as a first step toward what she called a transition away from the oversight board. She highlighted that the budget preserved funding for health, education and public safety and included targeted additions: an increase she described as "34,000,000 adicionales" for seniors and children with disabilities, $15,000,000 for childcare vouchers for working families, and $387,000,000 allocated to municipalities.

The administration framed the municipal funding as emergency or one-time relief in many cases. Mayor Dan Santiago of Villalba told reporters the rescue funds can relieve immediate fiscal pressure but warned such monies are not recurrent and stressed the need for recurring revenue measures and internal municipal reforms. "Podemos aliviar la situación este año, son temporeros," Santiago said.

González credited interagency work — citing the Office of Management and Budget (Oficina de Gerencia y Presupuesto) and the AFAF director — for producing what she called a collaborative process that yielded a certified budget. She said the budget uses a "budget-by-results" approach with measurable targets linked to allocations.

The governor also announced a $25,000,000 allocation for a new salary classification and retribution plan for career and trusted public employees, and additional funds to cover overtime and hires in public safety and social services. She said the administration has identified and reallocated unused funds to municipalities and distributed advances to municipalities affected by recent storms.

While the governor named figures and programs, she also acknowledged limits: several of the rescue funds and advances are one-time and will require future budgetary discussions. She repeatedly framed the budget as an instrument to recover fiscal sovereignty and to reduce reliance on the oversight board.

The legislative session recorded routine formalities (quorum certifications and authorizations to allow media into the hemicycle) but no roll-call votes on the budget were recorded during the address. The administration said the next steps are legislative review and votes on the budget measures in the coming weeks.

Why it matters: A certified, balanced budget sets spending priorities for the next fiscal year and signals the administration's approach to the Financial Oversight and Management Board. The large municipal allocation and one-time rescue funds address immediate local fiscal stress but leave open whether long-term revenue or structural measures will be adopted to prevent recurrent shortfalls.

The governor urged the Legislative Assembly to act on a package of tax and budget measures she said were consistent with the certified budget; she said those measures would follow the budget timetable.

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