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BY ELECTRONIC MAIL March 23, 2021 the Honorable Pedro Pierluisi Urrutia Governor of Puerto Rico the Honorable José Luis Dalma

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BY ELECTRONIC MAIL March 23, 2021 the Honorable Pedro Pierluisi Urrutia Governor of Puerto Rico the Honorable José Luis Dalma BY ELECTRONIC MAIL March 23, 2021 The Honorable Pedro Pierluisi Urrutia Governor of Puerto Rico The Honorable José Luis Dalmau Santiago President of the Senate of Puerto Rico The Honorable Rafael Hernández Montañez Speaker of the House of Representatives of Puerto Rico Dear Governor Pierluisi Urrutia, President Dalmau Santiago, and Speaker Hernández Montañez: In its letter of March 22, 2021, a copy of which is attached, the Governor of Puerto Rico has requested that the Commonwealth General Fund budget for the current FY 2021 that was certified by the Oversight Board on June 30, 2020 be revised following the provisions established in Section 202 of PROMESA to provide funds from the current General Fund budget to cover the cost of the Congressional Delegation election pursuant to Law 167-2020. For the Oversight Board to certify a revision to the budget, the Government must follow the procedure established under Section 202 of PROMESA. Therefore, pursuant to Section 202(a) of PROMESA, the schedule to certify the revised budget for the Commonwealth of Puerto Rico is as follows: March 26, 2021 – Pursuant to § 202(c)(1), the Governor submits a proposed revised budget to cover the cost of the Congressional Delegation election pursuant to Law 167-2020; March 29, 2021 – Pursuant to § 202(c)(1)(B), the Oversight Board sends the Governor a notice of violation if it determines that the proposed revised budget is not complaint with the certified Fiscal Plan; Hon. Pedro Pierluisi Urrutia Hon. José Luis Dalmau Santiago Hon. Rafael Hernández Montañez March 23, 2021 Page 2 of 2 March 31, 2021 – Pursuant to § 202(c)(2), the Governor submits a revised proposed budget, as needed; April 1, 2021 – Pursuant to § 202(c)(2), the Oversight Board submits a compliant revised budget to the Governor and Legislature; April 5, 2021 – Pursuant to § 202(d)(1), the Legislature submits a proposed revised adopted budget to the Oversight Board; April 6, 2021 – Pursuant to § 202(d)(1)(B), the Oversight Board sends the Legislature a notice of violation, as needed; April 7, 2021 – Pursuant to § 202(d)(2), the Legislature submits a revised adopted budget to the Oversight Board, as needed; and April 8, 2021 – Pursuant to § 202(e), the Oversight Board certifies the proposed revised budget. We look forward to working collaboratively for the benefit of the people of Puerto Rico. Sincerely, Natalie A. Jaresko CC: Mr. Omar Marrero Díaz Mr. Juan C. Blanco Urrutia March 22, 2021 VIA ELECTRONIC MAIL Hon. David A. Skeel, Jr. Chairman The Financial Oversight and Management Board for Puerto Rico P.O. Box 192018 San Juan, PR 00919-2018 Re: Request to Initiate a FY2021 Budget Amendment Process Under PROMESA Section 202 to Fund the Special Election of a Statehood Delegation Dear Chairman Skeel: I write in response to your March 15, 2021 letter, in which the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board” or “Board”) deferred action on the Government’s reprogramming request No. 2021-20376 (the “Reprogramming Request”). As you are aware, the Reprogramming Request seeks to reallocate funds for a special election to select a Congressional Delegation of Puerto Rico (the “Delegation”) as required under Act No. 167 of 2020 (“Act 167”). Act 167 mandates a special election to be held on May 16, 2021 (the “Special Election”)—only 58 days from today. In light of the fast-approaching date for the Special Election, the Government of Puerto Rico (the “Government”) respectfully requests that the Board immediately initiate a process to amend the fiscal year 2021 budget as permitted under section 202 of the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) so that the Government of Puerto Rico (the “Government”) will have specifically identified funds for the Special Election on May 16, 2021. Administration of elections and elections themselves are fundamental and sacred to democracy. Our federal government has said that “elections and other political processes are pivotal to the quality of a country’s governance and can either greatly advance or set back a country’s long-term democratic development.”1 And election results have 1 USAID, “Supporting Free and Fair Elections,” available at https://www.usaid.gov/what-we- do/democracy-human-rights-and-governance/supporting-free-and-fair- consequences that “confer a popular mandate that shapes legislative decision making . [to] produce better policy.”2 On November 3, 2020, the people of Puerto Rico voted in favor of statehood for the third time since 2012, affirming that “Puerto Rico be immediately admitted in the Union as a State.”3 In response, the Puerto Rico Legislature enacted Act 167 on December 30, 2020 to fulfill its “ministerial duty as a Government . to respect and defend that the mandate of the electorate is implemented” consistent with the November 3 election results.4 Among other things, Act 167 establishes the rules for holding a Special Election to elect the Delegation, which will consist of: (i) two special delegates to the United States Senate; and (ii) four special delegates to the United States House of Representatives. The purpose of the Delegation is to advocate for Puerto Rico’s statehood in the U.S. Congress by “demanding that Congress proceed to admit Puerto Rico as a state of the United States of America.”5 In addition, Act 167 establishes May 16, 2021 as the date of the special election,6 and mandates the Delegation to begin its functions on July 1, 2021.7 On February 15, 2021, the President of the State Elections Commission published a proclamation announcing the date and purpose of the Special Election to the public.8 The Government enacted Act 167 to further the statehood policy that Puerto Rican’s endorsed through the November 3 plebiscite, and as an extension of the democratic and civic participation process in Puerto Rico. Without the selection of the Delegation through the Special Election under Act 167, the November 3 statehood vote would be nothing more than a symbolic statement devoid of the meaningful change and federal- level advocacy that the majority of Puerto Rico’s voters have desired for nearly a decade. Importantly, the people of Puerto Rico received public notice of the Special Election and elections#:~:text=Elections%20and%20other%20political%20processes,and%20global%20foreign%20po licy%20priorities. 2 Michael D. McDonald, Silvia M. Mendes, and Ian Budge, “What Are Elections For? Conferring the Median Mandate,” B.J. Pol. S., Vol 34, No. 1 (Jan. 2004), at 1. 3 Act 167, art. 2. 4 Id. 5 Id., Statement of Motives at VI. 6 See id., art. 10 7 See id., art. 12. 8 State Elections Commission of the Commonwealth of Puerto Rico, Proclamation for May 16, 2021 Election, dated Feb. 15, 2021, available in Spanish and English at https://www.ceepur.org/delegacioncongresional/docs/proclama.pdf have an expectation that it will be held on May 16, 2021 as required by law. Therefore, adequate funding to implement Act 167 is vital for ensuring that Puerto Rico’s voters can exercise their democratic rights through the timely selection of the Delegation members, who will advocate for Puerto Rico’s statehood at the U.S. Congress. Importantly, the Government provided to the Oversight Board a Section 204(a) Certification (the “Certification”) for Act 167, specifically concluding that said Act is not significantly inconsistent with the Fiscal Plan. To date, the Oversight Board has not communicated to the Government that it disagrees with the conclusion of the Certification. While we believe there are multiple ways funding can be made available to carry out the Special Election, we are focused on cooperation and expedience in this letter. And, as you know, PROMESA section 202 grants the Board substantial power and control over the Government’s budgetary approval process. In addition to certifying annual budgets for each fiscal year, the Board has the authority to “set forth a schedule for revisions to Budgets that have already been certified” and “shall retain sole discretion to set or . change the dates of such schedule as it deems appropriate and reasonably feasible.”9 Since Act 167 is a valid law that has not been enjoined by the Oversight Board or any other competent entity, the Board should exercise its authority to commence a budgetary revision process that would provide an expedited pathway to ensure adequate funding for the Special Election. As you note in your March 15 letter, “the Oversight Board fully supports the right of the people of Puerto Rico to determine Puerto Rico’s future political status.”10 The people of Puerto Rico have already endorsed statehood through the November 3 plebiscite. Act 167 is simply the logical extension of that endorsement: a means to advocate for changing Puerto Rico’s political status among those in the halls of power who can make that change happen. Implementing a process for revising the fiscal year 2021 budget to fund the Special Election would show Puerto Rico’s voters that the Board’s support of Puerto Rico’s democratic rights is not empty rhetoric, but an applied commitment. 9 PROMESA § 202(a); 48 U.S.C. § 2142(a). 10 Id. at 2. Act 167 is valid law that is not significantly inconsistent with the certified Fiscal Plan and has not been enjoined by any pertinent entity or forum. As such, the Government has a legal duty to implement Act 167. Accordingly, I urge the Oversight Board to initiate the requested budgetary revision process immediately so that a revised fiscal year 2021 budget can be certified by the Board well in advance of the May 16 Special Election. The proposed calendar should consider the urgency of this matter.
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