Puerto Rico News 2015: Government Gives Christmas Bonus Despite Debt, 'Outmigration' Crisis
Puerto Rico has encountered further negative publicity as a result of its financial crisis.
Public employees were reportedly given Christmas bonuses in the U.S. commonwealth. Government officials, per law, had until Dec. 20 to deliver the bonuses, which totaled $120 million.
According to Reuters, the Christmas bonuses can be allocated to government officials and employees who have been working for at least six month. "Irregular" employees, who worked nearly 960 hours during the last 12 months, are also eligible.
The Christmas bonus details come as Puerto Rico lost nine percent of its island residents since 2004. As Spanish news agency EFE reported, more than 350,000 people left the island mainly due to the growing financial crisis.
Last July, Latin Post also reported the Puerto Rican population within the mainland U.S. has been increasing. Based on the U.S. Census Bureau data analyzed by the Pew Research Center, the island's population declined by 50,000 people, annually, between 2011 and 2013. Lack of jobs has been cited. The U.S. Bureau of Labor Statistics noted the island's unemployment rate is 12.5 percent from November's data, which is a slight increase from October's 12.4 percent.
The Puerto Rican government has been aware that the commonwealth's ability to grow will hinder further if the "outmigration" continues, but the U.S. Census Bureau's data showed its population will drop to 3 million in 2050, down from the current 3.6 million.
As Latin Post reported, Puerto Rico Gov. Alejandro Garcia Padilla has said the island's debt is "unpayable" and its size impedes the commonwealth from improving. According to the governor, Puerto Rico inherited over $70 billion of debt -- a figure he claimed "is essentially the same" as two years ago, but he denied allegations that the debt is solely the result of loans.
Last week, despite Garcia Padilla's pleas, Congress did not include provisions to help Puerto Rico with "the tools to do the job," referring to giving the island the same Chapter 11 bankruptcy laws as U.S. states and not a bailout.
Congress passed its omnibus spending bill without financial assistance to Puerto Rico, but House Speaker Paul Ryan, R-Wisc., is not deaf to the problem. Ryan said the financial crisis "is a problem that is not going away anytime soon," and he instructed select House committees to craft a potential solution plan and submit it by the end of first quarter 2016.
Resident Commissioner Pedro Pierluisi, who serves as Puerto Rico's congressman -- which has non-voting status, said, "This is disappointing because giving Puerto Rico state-like treatment under Chapter 9 does not cost American taxpayers a dollar, because numerous conservative individuals and organizations support this initiative, because the bill promotes the rule of law, and because I repeatedly expressed a willingness to be flexible and open to compromise on this issue."
Garcia Padilla has alerted that the island is unable to repay more than $900 million in debt obligations that will be due on Jan. 1.
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