Puerto Rico Department of Labor presents FY25–26 budget request, cites staffing, facilities and legal changes needed

The secretary of Puerto Rico’s Department of Labor and Human Resources, Nitche Irizarri Algarín, presented the agency’s budget request for fiscal year 2025–26 to the House of Representatives’ Commission of Finance on March 26, saying the department needs increased staffing, technology upgrades and changes to its organic law to carry out core functions.

Irizarri told commissioners the department has “an urgent need to recruit essential personnel” and to modernize information systems after finding “an absence of a formal structure” to manage federal funds and weaknesses in the claims system. In her oral presentation she described the creation of a proposed office for external and federal affairs to improve federal grants management and compliance.

Why it matters: The department said current administrative limits have reduced its capacity to manage federal programs, collect receivables and supervise enforcement of labor laws. Committee members repeatedly pressed for data on recurring federal funding and for a plan to avoid sudden service cuts if non‑recurring federal money expires.

Most important details - Staffing: Irizarri said the department had 996 employees as of Feb. 28, 2025, of whom 962 were active and 34 were on pre-retirement status under then‑existing law. She said the agency’s total was 143 fewer employees than on June 30, 2022, and outlined a hiring plan to fill vacancies in critical units such as contributions and claims administration. - Operations and technology: The secretary said the department lacks a funded computing/systems office and described projects under way, including implementing a platform called Delta that will add a module to automate recovery notices for overpayments. Irizarri said the absence of automatic recoupment notifications reduces the government’s ability to recover overpaid unemployment benefits. - Facilities: The presentation listed multiple infrastructure needs at the department’s central building — restroom remodels, conference room repairs, replacement of HVAC units, asbestos management and purchase/installation of an emergency generator — and said those repairs are necessary for safe operations. - Legal and enforcement changes: Irizarri proposed amending the department’s organic law to permit administrative sanctions and penalties for labor‑law violations so the agency could better enforce compliance and generate fee income to fund enforcement personnel. She said drafting of a bill would begin to enable that authority. - Budget totals and sources: In committee the secretary recited the consolidated request as stated in the agency memorial (verbatim excerpt provided to the commission). She described three funding components in the memorial: general‑fund allocations, special state funds and federal funds. The department’s written memorial lists line‑item breakdowns in the annex; committee staff asked for a separate schedule mapping those lines to federal versus local sources.

Committee questioning focused on whether the budget amounts shown in the governor’s joint resolution matched the department’s requested totals and on the large variance that appears between the agency’s requested payroll allocation and the baseline used by the Financial Oversight Board. Agency staff said the difference results from the board’s baseline methodology and that the department will use special state funds to cover shortfalls the board did not recommend.

What the department asked members to provide: Irizarri and budget staff asked the commission to (1) review the memorial annex for detailed line items, (2) permit time for the department to supply additional documentation on projected special‑fund revenue and (3) consider drafting or supporting an amendment to the department’s organic law to add administrative penalty authority.

Context and next steps: Committee members gave the department five business days to supply items requested during the hearing, including a breakdown of special‑fund revenue projections, a reconciliation of payroll baselines and documentation on federal funds that are expiring or at risk. The commission chairman said the committee will compare the departmental memorial with the governor’s joint resolution when the formal budget is submitted in May.

Ending note: The department closed its presentation and offered to answer follow‑up questions in writing and in subsequent hearings; committee members scheduled additional document deadlines in the record.