Federal board approves $12.7 billion budget for Puerto Rico as island shakes off bankruptcy

SAN JUAN, Puerto Rico (AP) — A federal control board that oversees Puerto Rico’s finances on Friday approved a $12.7 billion general fund budget that contains increases for teachers, judicial employees and the U.S. territory’s public university.

It is the largest budget approved in the island’s history.

The bulk of the funds, $2.6 billion, will go toward education, followed by $1.2 billion for public safety, $600 million for the University of Puerto Rico and $555 million for the island’s health department.

The approval comes after last-minute debates threatened to derail the proposed budget, which is slightly bigger than last year’s $12.4 billion budget.

The new budget was previously approved by Puerto Rico’s legislature and governor on Thursday and goes into effect on July 1.

Puerto Rico government officials claimed it is the island’s third balanced budget, but a spokesman for the board noted that the fiscal year 2022 budget hasn’t been audited.

“The government has continued to pass laws during recent fiscal years that reduce revenues or increases expenditures without identifying ways to pay for that incremental cost,” the board said.