Today (Friday), at their eighth public meeting, the Fiscal Control Board (FCB) introduced its final budget and amendments for the fiscal year beginning tomorrow (Saturday). This budget features control measures to monitor and oversee the expenses incurred by the government of Puerto Rico.

The expense limits proposed by the Board require that agencies not exceed their allocated budgets, while also cancelling and prohibiting any multi-year appropriations, except for those related to permanent improvements.

No expenditure will be charged against the budgetary reserve without authorization from the FCB, and any expenses above and beyond the budget will need the Board's approval.

The government shall submit weekly and monthly reports of the revenues, expenses, and cash flows for each agency. The budget also requires monthly and quarterly actual budget reports from each government agency on a modified accrual basis.

The Rosselló Nevares administration shall also submit monthly reports to the Board on the performance of each financial reform initiative, as well as quarterly reports on macroeconomic performance.

But what do the financial reform initiatives include? The outline per area is as follows:

1- Revenues

Collect outstanding taxes from individuals

Develop alternative models for the new corporate tax regime

Increase the taxes on gaming, tobacco, military stores, insurance premium, and others

Sell property tax liens and design a new property tax regime

Increase the compliance for the sales and use tax

2- Governmental restructuring

Freeze salaries

Cancel the yearly contract renewal for some employees

Control how certain job vacancies are filled

Reduce the subsidies for municipalities, the University of Puerto Rico, and the private sector

Prevent increasing operating expenses

Consolidate select agency services and facilities

Renegotiate contracts for goods and services

Cancel duplicate contracts

Reduce the amount of purchased goods and services

3- Health Care

Implement a standard fee schedule for providers and ancillary services

Replace the current profit-sharing contract clause in the Managed Care Organization (MCO) contract

Expand the coordination of benefits to ensure Mi Salud serves as a last-resort payer

Create a memorandum of agreement with the Department of Corrections to identify misclassified beneficiaries

Create a memorandum of agreement with Florida and New York to identify Mi Salud beneficiaries

Create a Medicaid fraud control unit

Reduce drug costs

Adjust benefits

Switch to a single-region MCO model

4- Retirement

Legislate changes to pension benefits

Reform pension benefits

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