Puerto Rico Fiscal Plan May Expect U.S. Aid to Come Too Quickly
- Expected influx creating ‘irrational exuberance,’ expert says
- Only 60 percent of FEMA approved aid has yet to be released
Puerto Rico’s latest fiscal plan anticipates a temporary return to economic growth and a potential $30 billion surplus over the next 15 years thanks in part to billions of expected federal disaster aid that may help lift the bankrupt island from a 12-year recession.
But that may be too optimistic, according to the Center for a New Economy, a non-partisan think tank that analyzes Puerto Rico’s debt and finances. While the influx of an anticipated $46 billion of federal public disaster aid will provide a jolt to the economy, it’s still unclear if those dollars will arrive fast enough to offset the impact of other austerity measures, such as cuts to municipal aid and the University of Puerto Rico, according to Mike Soto-Class, president and co-founder of CNE.