The University of Puerto Rico’s Board of Governors has approved a $1.254 billion consolidated budget for fiscal year 2026–2027 during a meeting marked by debate over restricted funds, statutory requirements, and unresolved institutional obligations. The measure, approved at an extraordinary meeting on Tuesday, passed with eight votes in favor, two against, and one abstention, clearing a key procedural step ahead of the PROMESA‑mandated budget submission due today.
A central point of discussion was the $60 million gap between the university’s proposal and the revenue forecast issued by the Fiscal Oversight and Management Board (FOMB). On June 5, the FOMB approved a revenue forecast of $1.194 billion for UPR—$60 million less than the amount endorsed by the Board of Governors. University officials stressed that, under Law 92 of 2024, the annual $60 million legislative appropriation for UPR must be treated as part of the institution’s consolidated budget and cannot be conditioned by the Oversight Board.
As reiterated during the meeting, “those $60 million must be unrestricted,” reflecting the governing board’s insistence that conditioning the funds would jeopardize operations across the system’s 11 campuses and Central Administration.
Members who voted against the budget argued that the uncertainty surrounding the $60 million leaves critical obligations uncovered, including the university’s retirement system and the $118 million required for the long‑promised reclassification and compensation plan for faculty, non‑teaching staff, and trust employees. One member noted that the retirement fund remains at last year’s allocation, despite actuarial studies identifying higher needs. Supporters countered that approving a budget on time is essential and that the vote sends a clear message to the FOMB that the university will not accept conditional treatment of the allocation.
The approval comes as the Puerto Rico government is required today to submit the proposed FY2027 UPR budget to the FOMB under PROMESA Section 202(c)(1). The Governor must submit a proposed budget based on the Oversight Board’s revenue forecast, along with detailed documentation explaining any variances and the methodology behind assumptions such as enrollment projections and campus‑generated inflows. The submission must also include the resolution adopted by the UPR Governing Board approving the proposed FY2027 budget, along with a signed certification from the Office of the Chief Financial Officer attesting to its accuracy and completeness.
With the consolidated budget now approved, the Board of Governors will next take up the budget by line item, with discussion and approval scheduled for July 30.
