(Washington DC, United States - September 20, 2024) - The executive director of the League of Puerto Rican Cities, Cristina Miranda Palacios, presented yesterday before senior officials of the Biden administration the fiscal reality of 43 municipalities, which will have to close operations due to economic insolvency.
“While the Biden administration has made considerable allocations of funds during the past four years related to laws such as the Infrastructure Investment and Inflation Reduction Act (IRA), the context is critical. As long as there is a Fiscal Control Board, imposed by the U.S. Congress, and people who are not elected make decisions about what happens in our country,” said Miranda Palacios about the federal entity created under PROMESA.
Recent studies published by the League of Puerto Rico Cities show that the austerity measures imposed by the Fiscal Control Board have drastically restricted the Puerto Rico government's ability to meet basic needs in education, health and infrastructure. These policies have had a devastating impact on the island's most vulnerable communities.
Against this backdrop, Miranda Palacios urged federal officials at the White House to conduct a compliance audit process on PROMESA, “something similar to a single audit that is governed under ‘Yellow Book’ and GAO standards,” he said.
“It would be a compliance and performance audit of the Fiscal Control Board under PROMESA and other existing federal laws. This can be assigned to the GAO or the Council of Inspectors General,” Miranda Palacios added.
Miranda Palacios' call was made during a session convened by the White House entitled “Communities in Action: Building a Better Puerto Rico and the U.S. Virgin Islands,” to which the League of Puerto Rico Cities was invited along with other community-based organizations (CBOs) from the archipelago and several governmental organizations.
Federal Transportation Secretary Pete Buttigieg, Federal Energy Secretary Jenniffer Granholm, Federal Emergency Management Agency (FEMA) Administrator Deanne Criswell and Deputy Secretary of Commerce Don Graves led the session.
Puerto Rico and Territories Director for the Office of Intergovernmental Affairs Gretchen Sierra Zorita, Assistant Secretary of Energy for the Office of Electricity Maria Robinson and Office of Intergovernmental Affairs Director Tom Perez also spoke.
During the event, the executive director of the League of Puerto Rico Cities highlighted how municipalities and citizen participation are essential to implement solutions adapted to local realities.
An example of this is the mayor of Gurabo, Rosachely Rivera Santana, who was also present at the federal session. Rivera Santana was part of the Municipal Innovation Lab, a training and technical assistance project led by the League of Puerto Rico Cities to optimize governance management. The launch of the Municipal Innovation Lab was made possible thanks to contributions from the Magic Cabinet, Policy Link and Ford Foundation.
The session, which took place on the seventh anniversary of the catastrophe caused by Hurricane Maria, also served to discuss topics such as sustainability and economic development, recognizing that community and nonprofit organizations have been key to the long-term sustainability and reconstruction of the island.
“The Biden administration has done a lot for Puerto Rico, but much remains to be done. Addressing the devastating impact of the Fiscal Control Board must be at the top of the federal agenda. Our commitment to defending Puerto Rico's rights and interests continues,” Miranda Palacios stressed.
“We thank the representatives in Washington for their willingness to listen to our concerns and recognize the need for a more collaborative approach that includes local governments in policy design. Collaboration between the federal government and municipalities is key to building a more just and equitable future,” concluded Miranda Palacios.
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