It has been 10 years since the Promesa law was enacted, and for municipalities in Puerto Rico, the main consequence has been the elimination of the Equification Fund, which provided substantial resources to nearly half of them. The new supervision model established by the law has lacked mechanisms for operational restructuring and fiscal oversight tools, according to mayors and former municipal executives.
The former mayor of Cidra, Javier Carrasquillo, stated that the Fiscal Supervision Board (JSF) failed to understand the purpose of the Equification Fund, which was eliminated gradually from 2017 to June 30, 2024. The fund, which redistributed over $350 million annually at its peak, was based on the economic needs of the municipalities and was funded by various sources, including a 2.5% transfer from the state's internal revenues and a 35% share of the Electronic Lottery's net income.
The Centro de Recaudación de Ingresos Municipales (CRIM) continues to distribute the latter two sources of funding. The elimination of the Equification Fund has had a significant impact on municipalities, particularly those with limited economic development potential due to their geographical location and social conditions.