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Thread: Puerto Rican Government Hase Gone Bankrupt!

  1. #1

    Default Puerto Rican Government Hase Gone Bankrupt!

    The governor and legislature remained at a stalemate.
    Gov. Anibal Acevedo Vila said he would agree to a lower sales tax than he had previously said was necessary to secure an emergency line of credit to finish out the fiscal year, but the Senate and House of Representatives did not offer a proposal.

    The island currently has no sales tax.


    All 1,600 public schools on the island closed Monday, two weeks before the end of the academic year, along with 43 government agencies.


    Many basic functions of Puerto Rico's government -- such as obtaining building permits or a driver's license -- were not available because of the shutdown, which the governor said was necessary because the island did not have enough money in its budget to get through the fiscal year ending June 30.


    The most obvious sign of the shutdown was significantly fewer cars on San Juan's usually clogged highways, and government employees said they were already starting to fear what could happen if the situation drags on.


    "In big or small ways, this affects us all," said Magaly Rosario, a 21-year-old teacher and mother of two boys. "The uncertainty is huge."
    The island closed the public schools, granting an unscheduled holiday to 500,000 students -- and leaving many teachers suddenly without a paycheck.


    Lines formed at the Labor Department, which remained opened so people could apply for unemployment benefits of up to $133 a week.


    Angel David Salgado Rodriguez, a 21-year-old driver for the Housing Department, said he hoped the crisis would end soon since he was getting married in a month.


    "I am up to my neck [in debts]. If this doesn't get resolved, I am going to look for another job on the side and fend for myself because I can't do much with $133," he said.


    The government is Puerto Rico's largest employer, with some 200,000 workers. Salaries make up about 80 percent of the government's operational costs.


    The shutdown -- the first in Puerto Rico's history -- happened despite last-minute attempts by Acevedo and lawmakers to agree on a bailout plan.


    Puerto Rico is saddled with a $740 million budget shortfall because the governor and lawmakers have been unable to agree on a spending plan since 2004. Conflicting sales tax proposals have been floated that would allow the island to secure a line of credit to pay public salaries through June 30.


    Acevedo had insisted that a 7 percent sales tax was necessary to pay for an additional $640 million loan. Anything less than 7 percent would only postpone the crisis until July 1, when the next fiscal year begins, he said.


    The governor now says he would be willing to accept a 5.9 percent sales tax -- the amount offered under one Senate proposal.
    Leaders in the House of Representatives said they would support a 4 percent sales tax.


    Members of the New Progressive Party, which controls the legislature, have blamed the governor for the crisis. The two sides never agreed on the 2005 or the 2006 budgets, and the government is using the 2004 budget to operate as debts pile up.

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  2. #2
    Senior Member Boricua's Avatar
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    Default Re: Puerto Rican Government Hase Gone Bankrupt!

    this is some bullshit, i've been hearing bout this from my dad for weeks, most of the ppl are blaming it on the PNP but I think their all to blame to let it get this far..

    now i got all my cousins n shit runnin round to early, there goes the neighborhoods

  3. #3

    Default Re: Puerto Rican Government Hase Gone Bankrupt!

    man that gotta suck

    feel sorry for my latinos

  4. #4
    Senior Member Boricua's Avatar
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    Default Re: Puerto Rican Government Hase Gone Bankrupt!

    Just talked to my pops and apparantly both sides have reached to an agreement, they still havent given out the details on what the % is gonna be for sales tax

    Everyone goes back to work on monday and kids go back to school as well, guess they'll make up those 2 weeks they missed

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