1. FEDERAL AFFAIRS 27 CARIBBEANBUSINESS THURSDAY,FEBRUARY 8, 1996
Puerto Rico iftcreases federal fund share
35% rise in discretionary funds since 1992; potential
fallout from federal cutbacks being monitored closely
By JOHN COLLINS
Applicatlonsfor federal grants from state agen-
.
cies, municipalities and tax-free organizations
'in Puerto. Rico rose to more than $ I billion in
1995, a 30% increase over the total of $725 mil-
lion in 1994, according to a report to Gov. Pedro
Rossello by Eduardo Laureano, his advisor on fed~
,
eral affairs.
Federal transfers to government entities and fed-
eral discretionary spending on the island "Iso are
reported to have grown.
Laureano has upgraded and expedited the dis-
semination of information on available federal
funding through the computer center he heads
in the governor's office. (See CARlBBEAN
BUSINESS, March 30, 1995.)
He coordinates his efforts through the coopera-
tion and assistance of key members of the
Governor's Cabinet, including Treasury Secretary
Manuel"EHâz:Saldaña, Secretary of State and
Plantling Board Chairwoman Norma Burgos
Anduj"r, Diredor of. Budget & Management Jorge
Aponte Hernandez, and Federal Aff"irs
Administrator Wanda R"ubianes. ColleCtively they
form a working group known as the Pentagono.
The 630 grant applications last year of more than
$1 billion were divided as follows: $655.5 million
of the applications from state agencies, $244.3 mil-
lion from municipalities, and $164.9 million from
private organizations. The breakdown for the total
of 630 applications was: 237 for state agencies,
194 for municipalities, and 199 for private organi-'
zations.
The Planning Board coordinated applicatiôns for
$885.4 million in federal funds in 1993 alid the
total contracted to $725 million in 1994 before
increasing to 1995's trital of more than $1 billion:
COULD BE 40% MORE
John Blakeman, Laureano's assistant advisôi, told
CARIBBEAN BUSINESS the more tlJan$1 billion
in applications processed by the Pentagono, while
sizeable, does not reflect the total, which be esti-
mates could be 40% more.
"The problem is that some municipalities and pri-
vate organizations go directly to the federal agen-
cies," Blakeman said. "In the case ofthe municipali-
.
ties some feel they are entitled to go directly under
the new concept of increased municipâlautònomy."
.
Blakeman believes the. d~cision that all-federal
grant applications go through the puerto Rico'
Planning Board was .a good one. "It avoids wasteful
duplication where two entities could be applying
for the sal1)e funding and neither ends up ~tting
it." He also said the coordinated approach comple-
ments the goals ând the overall objectives of the
Puerto Rico government.
How many of the applications have been
FEDERAL TRANSFERS TO THE COMMONWEALTH>GOYERNMENT
(in millions)
.
$2,000
$1 ,800
$1 ,600
$1 ,400
$1,200
$1,000
$800
$600
,
$400
$200
,
$0,
1992 1993
Source: planning- Board
.,_____..&-__"'..___.___.___>E<___._.......__.'..._J
1994 1995
,.' .4:JUi.(ô, .(.it/..... ~~:;J/Î.:):~UUJl iO(ll:J '(5.â..
"
EduardCJLaureanó,federal aHairs advisor to La
FortalezG;reports a notable increase' in' discretionary
federal fUnds, grants ,and-transfers ..
to local government
entities.
.
approved is not yet known since many are still
heing processed. Laureano advised the governor
that the total of discretionary funds received by
Puerto Rico in 1995 reached $469.7 million,
reflecting a35% increase since 1992.
The other ar.!'a where the Pentagono has been
able to incrêâse Puerto Rico's share significantly is
with the category of federal transfers to state ,.gen-
cies andmunicipalitiesc on the island. Laureano'
reported to the governor that the total. for 1995
reached $1.8 billion,
What the fallout from the current budget impasse
in the U.S. Congress will be on Puerto Rico will hè
determilledby the. version ultimately adopted.
"This situation hàs never happened hefore,"
Blakeman .said_ "Since many of the f"deral agencies
are operating under continuing resolutions, a lot of
the programs are on hold. Weare watching devel~
opments closely and. when a filial agreement is
reached we ,will be able to determine exactly. what
the impaèt is going to be.'.'
In addition, the Federal Affairs Administration in
WàshingtOIl rèports that, of 156 applications for
$1 1.8.6 million it is ~urrently processiI)g for Puerto
Rico government 'and private entitiès, grants for
$17.6 million have been appro"edand $95.4 mil-
lion are pendingfirial determination..
The computerized system that laureano installed
in the governor's office has won praise from. a num-'
ber of federal oJficials and members of Congress
who have, ~een it. Blakeman attributes a lot of the
success to this "BulIetin B9ard System:" He
explained that the various funding opportunities _,
are now available on line in La Fortaleza fro~
-
Washington alld are in turn sent directly to eligible
agencies and municipalities. "This provides them
with more time for the applications of the grant
proposals," Blakeman said. .
I.
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