U.S. Sen. Lisa Murkowski, R-Alaska, today convened the Senate Energy and Natural Resources Committee to examine Puerto Rico’s financial crisis. The committee received testimony on actions that could be taken and structural reforms that could be implemented – at the local and federal levels – to resolve the crisis in Puerto Rico.

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“Numerous reports suggest that even with the emergency actions taken by the Government of Puerto Rico, they will run out of cash in November – next month. Puerto Rico’s short-term liquidity crunch is real and action is needed,” Murkowski said. “At both the local and federal level, we must pursue actions that could have the most positive impact to make for a more effective and efficient government.”

Murkowski, chairman of the Senate Energy and Natural Resources Committee, pressed witnesses testifying at today’s hearing on the importance of having verifiable fiscal data and its effect on pursuing options to remedy Puerto Rico’s financial situation. 

Witnesses testifying at today’s hearing on 
Puerto Rico’s financial crisis

Murkowski pointed to the $1 billion gap between the FY2016 budget approved by the Puerto Rico legislature, which sets aside $1.5 billion for debt service costs, and the Krueger Report’s assertion that the official FY2015 $850 million surplus “is a far cry from interest and amortization costs of $2.8 billion.”

“With no independently audited financial report of Puerto Rico’s Government Development Bank – the island’s fiscal agent and financial advisor – since June 2013, it leads to uncertainty over the true extent of Puerto Rico’s financial challenges,” Murkowski said. “Once we have viable data on what’s happening on the ground in Puerto Rico, we must ensure that any measures implemented do not drive business away from the island because one of the pillars for solving Puerto Rico’s financial situation is private sector economic growth.”

Murkowski cited “unsustainable” high energy costs as an obstacle to economic growth on the island and added that “Puerto Rico’s economic health cannot be solved without also addressing its energy issues.”

Archived video and witness testimony is available on the committee’s website.