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“Live so that no one blames the rest of us nor finds fault with our work.” —2 Corinthians 6:3

Wassa Shut Down In Puerto Rico?
by "Who Dat Man" Barbanegra
t is hard to tell whether the present leader inherited Puerto Rico's problems or he created them and is blaming the previous gal. In any case, the USA and local media says that Puerto Rico may shut down its government next week unless the legislature approves a loan needed to cover a $738 million deficit... local government officials are shaking. (Creepy laughter) Ha, Ha ha!!!. One of the most prosperous countries in Latin America is going bankrupt? Are you laughing or crying with me? Wait a minute! Didn't the mighty USA have one of those in 1995?

It looks like Puerto Rico has been in an emergency situation, since USA grabbed it from Spain in 1898. Jeez, not that we were doing any better under Spain who bled us dry for 400 years until Uncle Sam "rescued" us... (From Guatemala to Guata-so-so...)

Thus, when government agencies and programs lack appropriated funding, they must cease operations, one by one, except in emergency situations. The failure to reach agreement on funding measures has caused government shutdowns... say, in the USA was from December 16, 1995, to January 6, 1996. Remember?

Shutdowns of the federal government have occurred in the past because legislative bureaucracy eats the deadline, lack of an agreement on stop-gap funding for federal government operations through a continuing resolution; and other impasses, for example, in 1995, the lack of an agreement on lifting the federal debt ceiling.

Government agencies that have not been funded because budget mis-managements, "trambullas", "movidas" and various deficits, will have to close. Take your pick... schools; parks services; payments to hospitals, clinics, health plans and ..

A possible loan from Government Development Bank includes provisions to cover government employee salaries through the end of the fiscal year, but a shutdown would affect all nonessential government departments including the 1,562 schools and 75,000 employees in Puerto Rico's education system as well as an estimated 200,000 government employees. Wow!

So, GDB is going to have the whole PR government go homeless if a consensus on a loan is not reached. They also say that  PR's per-capita debt burden is $5,758, 61 percent more than Connecticut, the U.S. state with highest tax-supported per-capita debt -- and has repeatedly borrowed money from the development bank to balance its budget.

 The latest fiscal crisis has been made worse by a political stalemate between Gov. Acevedo Vila and the lawmakers over tax increases and spending cuts the governor says are necessary to keep Puerto Rico afloat.

The potential for a temporary government shutdown comes on the heels of a polarizing legislative debate over fiscal reform and the approval of a sales tax aimed at solving the commonwealth's chronic budget deficits. We hope that any government shutdown would likely be temporary.

Puerto Rico's debt rating has fallen to near-junk status as it has continued to borrow to cover operating deficits. The government has borrowed $5 billion from the Government Development Bank as spending on education and employee payroll rises faster than revenue. (Sounds like my wife's credit card spending... hee, hee!)

Three out every 10 workers in Puerto Rico are employed by the government and employee payroll represents about 80 percent of government spending. The Commonwealth is also saddled with a pension shortfall of about $10 billion.

We 'd like, of course,  the island progressing toward adoption of a balanced budget. Lower ratings may reduce the value of Puerto Rico's $24 billion in outstanding debt and raise borrowing costs as investors may demand higher yields for taking on the risk of the debt.

Senate President Kenneth McClintock said the government has enough money to last through the first week of June and that shutting down nonessential services was premature. Puerto Rico's current budget is $9.6 billion.

"Its very risky to shut down school when you only have a week and half of classes to go. That will wreak such economic and social havoc,'' McClintock said."

Governor Acevedo Vila, has battled with pro-statehood legislators over the size of a sales tax increase to help close the budget gap. He supports a 7 percent increase in the sales tax, while leaders in the Legislature lower chamber have proposed a smaller 4 percent increase.

Acevedo has built a coalition with McClintock, who was excluded from the pro-statehood party in 2005 after battling with its party leader, former Governor Pedro Rosselló. The House, which is controlled by Rossello, has blocked efforts to push for a bigger sales tax increase and has balked at legislation that would cut 3,000 to 5,000 government jobs a year.

McClintock said he supported securing a "loan to end all loans'' of up $600 million from the development bank to cover the deficit combined with guarantees the government wouldn't borrow for operating expenses again.

The loan would be paid back with 1 percentage point of the new sales tax. The portion of the sales tax would also pay down the other $5 billion it owes the bank.

If you've "gotta go" when you're on the go on highways ... Try crossing your legs until you get home, or carry and empty gallon can because most likely you wont find an open insular rest area. Or, perhaps, stop at a town and go at the gas station? Or use a tree? Are we this helpless? YUP!

If all this stress is getting to you and your HMO denies your mental health treatment ... You wouldn't get your complaint heard. If you're a farmer in need of a low-interest loan, maybe the Money Store is your best bet.

If you're a consumer with a business complaint ... Look for help somewhere other than the Chamber of Commerce. Its consumer protection services would be interrupted, although the attorney general's will continue.

If you're ready to get your first Puerto Rico driver's license ... Better act fast. Driver testing and issuance of new licenses would be interrupted. Fewer young drivers on the road? Aah! My insurance rates will drop!

If you're a dislocated worker in search of new employment ... Don't count on help from the San Juan. Job services would be shut down. [Have they actually found anyone a job? Ever? Much bureaucracy, no  jobs anywhere near my area. Worthless. Pathetic.

If you're blind or injured and in need of vocational rehabilitation ... Same story. Those services aren't considered essential.

If you're choking on toxic emissions from the factory next door ... Try holding your breath. The Pollution Control Agency would delay responding to complaints and wouldn't be issuing air and water quality permits. [ So in other words, the years-long process of dealing with complaints will become years and weeks-long. ]

If you're stranded in San German ...stock up on shoe leather. Rural transit systems wouldn't be reimbursed by the government, possibly affecting service. Go publico. You live in Rio Piedras and the job is outside walking distance... like San Juan? Get a bike.

If you have a beef with the local police... Don't expect swift justice. Internal investigations would be delayed, although main highways will be fully patrolled. (Yeah, Riiiiight. Because your complaints against police are taken so seriously today. Dream on!)

If you're a minimum wage worker ... Hope the shutdown doesn't last beyond your scheduled raise. There would be no one in government to enforce the increase or, for that matter, overtime and prevailing wage laws.  Right?

Some things won't change, shutdown or not. In general, courts have ruled that operations affecting public health, welfare and safety should continue, even without legislative authorization.

If you receive "mantengo", i.e., welfare, food stamps or child support ... Don't fear. Those services aren't supposed to change. So the gloom and doom above about social services is overstated?

If you have a concern about Grandmama's care ... Help should be on the way. Health and safety inspections of nursing homes and hospitals and background checks of workers in state-licensed facilities would continue. [Which is good, although I look forward to an era of vigilante inspections by the time I'm in my nineties. ]

And, finally:
If you're the Governor, a Senator or a state legislator, don't worry about your next paycheck, mi pana! You took care of yourselves by enacting the state government finance bill during the regular session, since you're in the habit of cutting funding and putting yourselves out of work.

It's like sawing the tree branch that your sittin' on.

"Don forget about truth and mercy; tie them around your neck; write them upon the tablet of your heart; and you'll find favor and good understanding with both God and man." —Proverbs 3:3-4

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