San Juan- Robert Mujica warned Governor Jenniffer González-Colón that two major Puerto Rico public corporations are relying on nonrecurring funds to balance their budgets, raising concerns about their long-term financial sustainability.
Speaking during a press conference, Mujica identified the Puerto Rico Aqueduct and Sewer Authority and the Puerto Rico Highways and Transportation Authority as agencies currently using one-time reserves to support operational expenses.
According to Mujica, the fiscal plan for the Aqueduct and Sewer Authority depends on rate increases, the installation of new meters and improved revenue collection to ensure recurring income can cover ongoing expenses.
However, he warned that the utility has also relied heavily on reserve funds to finance operational budgets, a strategy he said could only sustain operations for approximately one more year before reserves are depleted.
“At that point, they will need to change their spending profile to rebalance the budget or find another alternative,” Mujica stated.
He added that the Highways and Transportation Authority faces a similar situation, using nonrecurring funds to maintain budget stability.
Mujica emphasized that the Fiscal Oversight Board remains open to alternative recurring revenue solutions proposed by the government or the agencies themselves, provided they achieve structural budget balance.
“The main concern we have is that, in order to regain access to the credit markets, they must demonstrate that their budgets are balanced and that they can finance their expenses with current recurring revenues,” he said.
According to Mujica, Governor González-Colón’s administration is already reviewing the fiscal plans and evaluating possible compliance strategies.
“These are significant and real issues that require attention,” he concluded.
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