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Puerto Rico fiscal team presents FY2026 framework as PROMESA timeline narrows review window
Summary
Government fiscal team told the House Finance Commission the FY2026 consolidated budget totals about $32.6 billion, laid out PROMESA certification milestones and warned of timing constraints from the Financial Oversight Board.
The fiscal team for the Government of Puerto Rico presented the House Finance Commission with a proposed FY2026 consolidated budget and a PROMESA-driven timeline that the administration said will shape final negotiations.
The Office of Management and Budget (OGP) and the Department of Hacienda told legislators the consolidated budget the administration is working from totals $32,591 million, divided into a $13,258 million general fund, $5,147 million in special revenue funds and roughly $14,186 million in federal funds. Orlando Rivera, director of the Office of Management and Budget, described those figures as the revenue “target” his office used to build agency allocations.
Why it matters: Puerto Rico’s budget process must align with the Financial Oversight and Management Board established by PROMESA. The Board’s calendar includes multiple review steps that can trigger a formal notice of noncompliance and require revisions, shortening the legislature’s window for deliberation.
Rivera and other presenters walked the commission through the PROMESA calendar the Board issued: the governor submits a proposed budget (already done March 3), the Board and government hold review meetings through mid‑April, the Board may issue a notice of noncompliance on April 16 if the proposed budget diverges from the certified fiscal plan, the governor may submit a revised proposal by April 28, the Board prepares an adjusted budget by May 8, the legislature should adopt a budget by June 2 and the Board will issue certification (or notify of noncompliance) by June 13, with final certification due by June 30.
OGP said the FY2026 proposal was prepared to follow the certified FY2024 fiscal plan and to remain within the Board’s revenue targets. The presentation emphasized the administration’s intent to preserve “discipline” in revenue estimates while funding administration priorities.
The administration also reported the government’s main liquid balance and reserves. Hacienda told the commission the Treasury Single Account balance is about $9,972 million; approximately $7,000 million of that is restricted for operational obligations, with roughly $1,300 million in reserves and an estimated $800–900 million of more freely available cash at a point in time. The fiscal team said about $648 million remains reserved for future plan‑adjustment related distributions and that certain amounts are earmarked for anticipated claims and other obligations.
The committee asked whether the budget as proposed will produce a certified plan. OGP replied the administration and the Board are in active discussion and that a Board notice of noncompliance is possible; any such notice would trigger revisions and additional coordination.
Ending: The hearing set the stage for further agency‑level presentations and follow‑up questions the commission said it will pursue in subsequent sessions to scrutinize line items while the PROMESA calendar proceeds.
