Lamar Smith: “House Resolution 5278 creates a board of managers to address the fiscal condition of Puerto Rico. However, Puerto Rican…”

“House Resolution 5278 creates a board of managers to address the fiscal condition of Puerto Rico. However, Puerto Rican officials still have not been held accountable or accepted responsibility for their policies that caused the financial crisis. In fact, just the opposite: the Puerto Rican government ignored its fiscal obligations when it recently voted to approve a moratorium on repaying any of its debt. But it is Puerto Rico and not Congress who should take the first steps to adopt reform measures. There is no certainty that a financial oversight board would implement any economic growth measures to improve the Island's fiscal condition. The board has no mandate from Congress to address the bloated government workforce, high taxes, an insolvent pension system, limitations on trade under the Jones Act, and excessive welfare benefits, all of which helped cause the fiscal crisis. This legislation rewards bad behavior and represents a missed opportunity for Congress to insist on fiscally responsible reforms.”