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Bill

RCS 119

Para ordenar a todas las agencias, departamentos, oficinas, dependencias, corporaciones públicas e instrumentalidades del Gobierno de Puerto Rico a que, en coordinación con la Oficina de Gerencia y Presupuesto (OGP) y la Coordinadora de Eficiencia, creada en virtud del Boletín Administrativo Núm. OE-2025-023, identifiquen un ahorro de cinco por ciento (5%) en el presupuesto del Año Fiscal 2026-2027, a los fines de identificar quinientos (500) millones de dólares para financiar una reforma contributiva que beneficie a los contribuyentes de Puerto Rico; y para otros fines relacionados.

2025-2028 Session

Puerto Rico orders all government agencies to cut 5% budgets in FY2026-2027 to generate $500 million for tax reform, affecting service delivery and operations government-wide.

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Bill Summary · RCS 119

Legislative bill overview

Bill RCS 119 mandates all Puerto Rico government agencies, departments, and public corporations to identify 5% budget cuts in fiscal year 2026-2027, coordinated through the Office of Management and Budget (OGP) and the Efficiency Coordinator. The goal is to identify $500 million in savings to fund a tax reform benefiting Puerto Rico taxpayers.

Why is this important

This bill directly affects government operations and service delivery across all public agencies while attempting to finance a major tax reform. The $500 million in identified cuts could significantly impact public services, employment, and operational capacity depending on where reductions occur.

Potential points of contention

  • Scope of cuts: A uniform 5% reduction across all agencies may disproportionately harm essential services (healthcare, education, public safety) compared to administrative functions
  • Tax reform details: The bill doesn't specify which taxpayers benefit or the nature of the tax reform, raising questions about equity and actual economic impact
  • Implementation feasibility: Coordinating cuts across hundreds of government entities within tight timelines may lead to inefficient or counterproductive reductions rather than strategic efficiency improvements
  • Deficit concerns: Using one-time budget cuts to fund ongoing tax benefits creates structural budget problems for future years

Compiled from official sources — confirm details with the bill’s official record.

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