P.R. Laws tit. 3, § 8762
The Strategic Plan shall contain an item of economies and internal controls on the expenses of every agency of the Government of the Commonwealth of Puerto Rico.
The Plan shall include a detailed itemization of all the economies to the budget of operating expenses assigned to it.
Recognizing the compelling need of the Commonwealth of Puerto Rico to attend to its margin of expenses and to harmonize them with the fiscal economic situation of the Commonwealth, the following parameters are fixed as non-inclusive elements of fiscal attention:
(a) For Fiscal Year 2006-2007, the Executive Branch of the Commonwealth of Puerto Rico shall be under the obligation to make savings and economies in the operating expenses of the budget in an amount of not less than three hundred fifty million dollars ($350,000,000) of the proposed budget for all agencies nurtured from the General Fund. These savings shall include economies resulting from the implementation of all expenses controls established by this chapter, for example, early retirement plans or with incentives and the consolidation of agencies, among others.
Those agencies or public entities whose budgets or appropriations are established by law or based on previously approved formulas shall not be included. The payment of the public debt shall not be included in the reduction.
The savings and economies provided in this subsection shall be done taking as basis the budget proposed by the Governor for Fiscal Year 2006-2007, which has been fixed in [nine billion six hundred and eighty-four million] dollars ($9,684,000,000). During fiscal year 2006-2007, not less than three hundred million dollars ($300,000,000) shall be generated from the General Fund.
(b) In subsequent fiscal years, the economies in the budget shall be done in accordance to what is established in the Act that creates the Urgent Interest Fund.
(c) On or before the third year after the application of the Fiscal Reform, the Operating Budget of the Government of the Commonwealth of Puerto Rico shall be of up to a maximum of a two percent (2%) less than the recurrent revenues.
(d) Those increases duly legislated and approved by law shall be excluded from the aforementioned savings and economies.
(e) Among other items to be reduced, the items for appointment of employees of trust, professional services contracts, payment of leases by the Government of Puerto Rico for private facilities, purchase of equipment and publicity expenses, shall be included. On evaluating the possible economies in the aforesaid items, the highest priority shall be to not impair the rendering of health and public security services, given they are essential areas for the citizenry, and the rents paid to public corporations for the services and maintenance they render, which depend on their revenues for the payment of payroll. The economies made and/or projected in these items shall be a priority in the Strategic Plan prepared by each agency as established in § 8761 of this title.
(f) Pursuant to the above provisions of this section, the Director of the Office of the Management and Budget shall present, on or before June 2, 2006, the Government Expenses Adjustment Program, pursuant to this chapter, which shall be submitted before the Office of the Secretary and the Clerk of both Legislative Bodies.
(g) The budget of the Senate and the House of Representatives of Puerto Rico for Fiscal Years 2006-2007 and 2007-2008 shall be equal to that of Fiscal Year 2005-2006, and shall not experience any increase during said years.
(h) The budget of the Judicial Branch shall be governed by the provisions of Act No. 286 of December 20, 2002.
(i) No final discretional compensation shall be assigned to officers appointed after the effective date of this act for the ceasing of their functions.
History —May 25, 2006, No. 103, § 13, eff. July 1, 2006.