Chattanooga Times Free Press

Puerto Rico sues federal control board over budget difference­s

- BY DANICA COTO

SAN JUAN, Puerto Rico — Puerto Rico’s government sued a federal control board Thursday to resolve a disagreeme­nt over two competing budgets that aim to pull the U.S. territory out of an 11-year recession.

Gov. Ricardo Rossello said he is seeking an injunction to stop the board from imposing an $8.76 billion budget that contains various austerity measures, and he accused it of trying to dictate the island’s public policy.

“Our north will always be to defend the most vulnerable in all forums,” he said in a statement.

The lawsuit is expected to define the powers of a board created by U.S. Congress two years ago to oversee Puerto Rico’s finances.

The suit accuses the board of imposing its policy preference­s on Puerto Ricans and micromanag­ing all budget expenditur­es, warning it could increase the flow of migration to the U.S. mainland, which would reduce the tax base and worsen the island’s economic and humanitari­an problems.

“The board’s efforts exceed its lawful powers,” the lawsuit states. “[It] cannot do what it is attempting to do: impose mandatory workforce reductions, change the roles and responsibi­lities of certain government officials, criminaliz­e certain acts under Puerto Rico law and otherwise seek to micromanag­e Puerto Rico’s government.”

The lawsuit is a result of budget wrangling in Puerto Rico: One budget was approved by the board and another was approved by legislator­s and signed by Rossello earlier this week.

The difference­s emerged after Puerto Rican legislator­s failed to repeal a law affords protection­s to workers who might have been unfairly dismissed. The board has said the measure was needed to help attract investors and that if it was repealed, it would not slash vacation and sick days or eliminate a yearly Christmas bonus for government employees as part of its austerity measures.

Rossello had promised the board that the law would be repealed and convened a special legislativ­e session Tuesday, but senators shot down the measure for a second time.

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