Puerto Rico’s Fiscal Control Board Gets Started

The Junta de Control Fiscal (JCF) has already set a deadline for a new plan to begin solving Puerto Rico’s debt problems. By October 14, current Governor Alejandro Garcia Padilla is expected to present this plan to the board. Despite being tasked with overseeing Puerto Rico, the JCF has been meeting in Manhattan, where they have already been accosted by protesters. There is a lot of controversy surrounding the board, from its very existence to its seven members, some of who have questionable pasts concerning the island.

The JCF, via NBC*:

  • Andrew [Biggs] is currently with the American Enterprise Institute and served in the George W. Bush administration, including in the Social Security Administration and supports privatizing the system.
  • Jose B. Carrión III is president and principal Partner of HUB International CLC, LLC. He previously served in various positions in the island government, including the Workers Compensation Board. [Carrion is a pro-statehood Puerto Rican Republican, who evidently also promotes Republican involvement in pushing for Puerto Rican statehood on the side. He’s also the brother-in-law of Pedro Peluisi, Puerto Rico’s non-voting Congressional representative.]
  • Carlos [M.] García is the CEO of BayBoston Managers LLC and managing partner of BayBoston Capital L.P., a company he founded in 2013. He has held several financial positions in the past, including president and CEO of island’s Government Development Bank. García, who favors statehood for the island, is considered the architect of Puerto Rico’s controversial Ley 7 (7 Law), which allowed the government to temporarily declare a fiscal emergency and lay off thousands of public sector employees in response to Puerto Rico’s fiscal crisis.
  • Arthur González is with the New York University School of Law. Judge Gonzalez previously served on the United States Bankruptcy Court for the Southern District of New York from 1995 to 2012, retiring as Chief Judge in 2010.
  • José R. González is CEO and [P]resident of the Federal Home Loan Bank of New York. He has served in a variety of banking and financial services positions, including with Credit Suisse First Boston and with the Government Development Bank of Puerto Rico.
  • Ana Matosantos, the only woman on the board, is president of Matosantos Consulting and has been director of the California Department of Finance and deputy director of budgets for the state. [Matosantos has been lauded by past associates for cooperating with administrations from both parties.]
  • David Skeel Jr. is a professor at the University of Pennsylvania Law School, having previously taught at Temple University in Philadelphia and in private practice. He authored the book, “True Paradox: How Christianity Makes Sense of Our Complex World.”

*Brackets denote edits and additional information not included in the original article referenced.

Three of the board are Democrats, while the other four are Republicans, giving the majority control effectively to the latter (like a lot of other such committees seem to do…). Four are Puerto Ricans, though at least three of those are pro-statehood Republicans who were deeply involved in the last statehood governor’s cabinet. Like former Governor Fortuño, some of them have been diligently working within the Republican party in the mainland. It’s also important to note that Fortuño promoted the idea of a fiscal control board along with limited debt restructuring for municipalities and public corporations almost exactly a year ago. He made sure to assert that the government’s debt should not be touched so as to not set a precedent of rewarding states or territories for fiscal mismanagement – a consistent rhetorical point among Republicans concerning the debt crisis.

Ir’s hard to not be skeptical of the board and its members. Some of them have repeatedly shown a greater prioritization for ideology than for Puerto Rico itself. The former governor and his cabinet, including those on the JCF, still try to perpetuate their story of “saving” Puerto Ricans from themselves by implementing fiscally conservative policies. Of course, they really did neither, and in fact, according to some sources, Fortuño actually outspent the people he accuses now of overspending. Despite this blatant hypocrisy, these same people were still chosen to try to “save” Puerto Rico again. And yet again, Puerto Rico’s actual welfare falls to the wayside in the interest of making political partisan statements. The worst part for me personally is that the framing of the Puerto Rican appointees is one of native sons shepherding their homeland, while precedent demonstrates that they’ll do anything but. Between their personal agenda of promoting Puerto Rican statehood and their loyalty to a party that frequently uses the island as a pawn in their ideological battle royale, I don’t have a lot of faith that this control board will do anything beneficial for Puerto Rico. Once again, the help the island needs will have to come from outside the governments in San Juan and Washington.

Advertisements

2 thoughts on “Puerto Rico’s Fiscal Control Board Gets Started

  1. Pingback: Puerto Rico May Have Some Good News for Its Tourism | palenqueblog

  2. Pingback: A Bigger Crisis in Puerto Rico May Be Developing | palenqueblog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s