DDEC seeks $28.8 million budget increase for fiscal 2026-27

Puerto Rico’s Department of Economic Development and Commerce (DDEC) is seeking a $28.8 million budget increase for fiscal year 2026-27, with agency officials citing rising pension obligations, infrastructure investments and operational costs as key drivers behind the request.

During a public hearing before the Senate Treasury, Budget and PROMESA Committee, DDEC Secretary Sebastián Negrón Reichard said the agency submitted a proposed budget of $107.4 million, including $29.7 million from the General Fund and $77.7 million in self-generated revenue.

Negrón said the requested increase would primarily support payroll expenses, professional services, capital improvement projects and PayGo pension obligations.

“The budget request for FY2027 represents an increase of $28.8 million compared to fiscal year 2026,” Negrón said during the hearing. He noted that $8 million of the increase is tied to PayGo expenses, while $14.8 million would fund infrastructure investments and permanent improvement projects.

According to the secretary, the increase in pension-related costs reflects adjustments tied to retirees whose pension expenses had previously been covered by other agencies, despite belonging to offices consolidated under DDEC.

The agency also projects approximately $119.9 million annually in federal Workforce Innovation and Opportunity Act (WIOA) funding, along with an estimated $164 million in multiyear federal grants. 

Roberto Lefranc Fortuño, executive director of the Puerto Rico Industrial Development Company, outlined the corporation’s $96.5 million fiscal year 2025-26 budget during a Senate public hearing, highlighting the agency’s self-sustaining funding model, infrastructure management efforts, and plans to continue property demolitions and economic development projects across Puerto Rico. (Photo: Senate of Puerto Rico)