Sunday, May 14, 2006Pérez presents fiscal reform bill to the House
SAN JUAN (EFE) – House Budget & Allocation Committee Chairman Angel Pérez disclosed the amended version of the fiscal reform bill that is expected to be approved at the House Friday.
According to the bill, government annual expenses must be cut by $300 million starting next fiscal year, which begins July 1.
According to the bill, government annual expenses must be cut by $300 million starting next fiscal year, which begins July 1.
This legislative measure replaces the New Progressive Party version by granting the Legislative Assembly the power to control certain government expenses, eliminate the use of public funds to cover cell phone bills, and limit car allowances, lobbying, and advertising expenses.
The bill also includes recommendations of Popular Democratic Party House minority leader Héctor Ferrer and Office of Management & Budget Director Ileana Fas Pacheco.
"These savings won’t entail government layoffs because the bill was amended to include early retirement, retirement incentives, and the freezing of vacant positions, as well as the consolidation of agencies, and contract reductions,” Pérez said.
Pérez also announced that the House will evaluate four fiscal reform bills from the Senate.
However, union leaders asked that the House postpone the evaluation of the fiscal reform bill, which they believe will inevitably lead to government layoffs.
José Rodríguez Báez, president of the Puerto Rico Workers Federation, and Federico Torres Montalvo, president of the Puerto Rican Central Workers Union, claimed that the bill hasn’t been studied by union leaders.
They also demanded that the negotiating committee be present in the discussion of the tax reform bill, which will include a sales tax whose percentage has yet to be agreed upon.
