Audited financial reports show that in 2024, 32 of Puerto Rico's municipalities (43%) spent more money than they took in, a practice that weakens already deteriorated municipal finances, according to the latest Municipal Fiscal Health Index from ABRE Puerto Rico (ABRE PR). This is a 4% increase from 2023, when 30 municipalities engaged in the practice. ABRE PR deputy director Wesley Sepúlveda spoke at a press conference at the Fundación Banco Popular in Hato Rey, saying municipalities are watching their general balance but again spent beyond their income.
Executive director Ángel Sierra explained ABRE PR uses 13 general indicators to compare municipalities, with five performance indicators weighted 65% and financial-position indicators (accumulated debt) weighted 35%; a surplus alone doesn't guarantee a good score. The analysis classifies fiscal health into five categories: exceptional, healthy, average, deficient, and unsustainable. Isabela, Caguas, Carolina, and Arecibo were rated deficient, while Caguas, Toa Baja, Loíza, and Río Grande, among others, were rated unsustainable (the lowest tier).
Meanwhile, 42 municipalities (57%) fell into exceptional, healthy, or average categories. The eight exceptional municipalities are Aibonito, Utuado, Culebra, Barranquitas, Vieques, Fajardo, Cayey, and Hatillo.