November 18, 2014

The Honorable Mazie Hirono and the Honorable Orrin G. Hatch
Subcommittee on Oversight, Federal Rights and Agency Actions
Committee on the Judiciary
United States Senate
Washington, DC 20510

Dear Senators Hirono and Hatch,

To help resolve the long-standing debate over Puerto Rico’s future status, Public Law 113-76 authorizes residents of the territory to vote on options determined by the Department of Justice to be consistent with the Constitution, laws, and policies of the U.S.  On July 25, 2014, Governor Alejandro Garcia Padilla stated that the government would hold a plebiscite, or a vote, on the issue by the end of 2016.  On behalf of the more than one million members and supporters of the Council for Citizens Against Government Waste (CCAGW) I urge you to ask the Department of Justice to reject the governor’s “commonwealth status” proposal, which both fails to comply with U.S. laws and unfairly burdens taxpayers with billions of dollars in expenditures.

According to a July 16, 2014 article in the Latin Post, Governor Garcia Padilla and his Popular Democratic party are proposing an “enhanced” commonwealth status for Puerto Rico.  The territory would “become a nation with at least one national government power, equal funding with the States in Federal social programs, and exemptions from some Federal laws: a [sic] unprecedented, contradictory combination of aspects of nationhood, statehood, and the current unincorporated territory status…”  However, this concept “…has been rejected by the Obama, George W. Bush, and Clinton Administrations and congressional committee leaders of both national political parties.”  

One result of this hybrid proposal is that Puerto Rico would be funded equally with the states but would not assume responsibilities equal to those of the states.  As a result, federal taxpayers would be sending approximately $7.5 billion a year to Puerto Rico in a manner that would likely conflict with the laws and policies covering government programs.  The governor’s proposal would expand ‘Obamacare’ insurance subsidies by $1.5 billion, Medicare by up to $1.5 billion, Medicaid by up to $1 billion, Supplemental Security Income by up to $1.8 billion, Supplemental Nutrition Assistance by up to $700 million, and Temporary Assistance for Needy Families by up to $300 million.

The proposed “commonwealth status” is is not an isolated example of the Garcia Padilla administration’s fiscal irresponsibility and disregard for law.  The government is also attempting to evade or delay payments of its obligations.  In one case, it is trying to limit payments to Federally Qualified Health Centers under a $28 million court judgment through a questionable law enacted in June 2014 that limits annual fulfillments of all court judgments to $3 million.  In another case, the Puerto Rican government has refused to honor a $230 million tax refund agreement with the island-based financial company that operates Doral Banks in Florida and New York, as well as in Puerto Rico.  When a territorial court upheld the accord, the Garcia Padilla administration suggested it would invoke the new debt law to limit payments to $3 million a year even if it loses an appeal to the Supreme Court.

Please urge the Department of Justice to reject the plebiscite proposal as outlined by Governor Garcia Padilla so that Puerto Ricans can have an opportunity to vote on a valid proposal to determine their future.  We also urge you to inform the Puerto Rican government that it should uphold it legal obligations.

Sincerely,

Tom Schatz
President, CCAGW

Cc: Hon. Alejandro Garcia Padilla
Governor of Puerto Rico
La Fortaleza
San Juan, PR 00901