"Puerto Rico's governor announced a $1.4 billion cut in public spending on Tuesday as the commonwealth government agencies braced for measures that will be taken to produce the first balanced budget in years.
Governor Alejandro Garcia Padilla unveiled his $9.64 billion budget proposal for 2015 in an address to the legislature that included a $775 million payment for Puerto Rico's long-term debt.
The current general fund budget is $9.835 billion for fiscal year 2014, which runs through June 30.
"We are beginning to pay for today's expenses with today's earnings. This balanced budget complies with my commitment to prepare a budget without deficit financing nor refinancing of debt," the governor said."
UPDATE 1-Puerto Rico governor announces $1.4 billion budget cut | Reuters
https://www.google.com/?#q=Puerto+Rico+cuts+Government+spending
"The spending cuts are being accomplished through an across-the-board-cut that averages about 8 percent for most government agencies, except for the Police Department and University of Puerto Rico. The plan includes $775 million for debt service.
While claiming to be the first balanced budget in two decades, the government will rely on $269 million in debt financing from a $3.5 billion March bond issue for interest payments due this year. Another bill approved as part of the budget would allow agencies to postpone payments due to the Government Development Bank, which will save $75 million this year.
An analysis by the Center for a New Economy, a local think tank, has identified $300 million in projected savings and revenue that it believes the government will not be able to realize."
Puerto Rico governor signs $9.56 bln budget for 2015 | Reuters
https://www.google.com/?#q=Puerto+Rico+2014+Budget
Under-employment 40% looking
https://www.google.com/?#q=crime+rates+puerto+rico
"The House opposed the Governor's proposed rate of the sales tax, suggesting a lower rate. While Governor Acevedo Vilá proposed a global 7% rate, the House instead proposed a global 5.5% rate. The House also proposed a 5% corporation tax, but the Governor has argued that this would violate a number of tax incentive contracts with American corporations,[citation needed] and that it may even violate the Constitution of Puerto Rico.[citation needed]
In a televised address on 27 April, Governor Acevedo Vilá announced that most of the government agencies would be shut down beginning 1 May, and would remain closed unless the House approved the economic plan. Government activities relating to health and security (including hospitals and police stations) would remain open, although medical professionals questioned whether hospitals would function if staff went unpaid and also raised the issue of government-funded prescriptions, whilst private security firms on contract to the government said they might cease work if the government did not pay what it owes them.[1]
Senate President Kenneth McClintock said that the shutdown was unnecessary since the government had enough funds to continue paying public workers until the first week of June and that under no circumstance should public schools be shut down.[2] NPP President Pedro Rosselló said he did not think Governor "
https://en.wikipedia.org/wiki/2006_Puerto_Rico_budget_crisis
https://www.google.com/?#q=Police+Budget+Puerto+Rico
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