Graphic AppendixGovernment of Puerto Rico

Proposed Budget FY 2010-2011

Luis G. Fortuño, GovernorApril 2010

Distribution of FY 2010-11 Consolidated Budget by Area

Total Budget: $26.970 billion

2Source: OMB

(in $ thousands)

Economic Development $4,939,534

Governance $832,272

Social Development $14,522,604

Municipalities $412,966

Security and Protection $1,532,389

Debt Service $4,378,763

Courts $351,828

16%

6%

2%

54%

18%

1%

3%

Consolidated Budget for FY 2011 is $1.7 billion less than FY 2009

2009 2010 2011

$28,670.3

$28,673.5

$26,970.4

($ millions)

1. 32

FY 2011 Vs. FY 2010 Consolidated Budget by Mayor Expense

Operating Expenses

Contributions & Subsidies

Capital Improvements

Debt Payment

0 5,000 10,000 15,000 20,000 25,000

$20,468.3

$2,173.6

$2,257.7

$3,773.8

$18,868.7

$2,178.9

$1,544.0

$4,378.8

($ million)

FY 2011FY 2010

1. 43

FY 2008 -2011 Consolidated Budget by Source of Funds

5,000

15,000

25,000

1. 54

Budget for FY 10-11 represents anincrease in revenue collections

General Fund Revenues:

Stabilization Fund:

Total Resources:

$8,195

$1,000

$9,195

Base Revenues: $7,645

+ Fiscalization: $241

+ Video Lottery: $220

+ Self-appraisal: $89

$8,195

Paving the way to a balanced budget

(in

$ m

illi

on

s)

Source: Department of the Treasury 5

General Funds ResourcesRecurrent Vs. Non Recurrent

2008-09 2009-10 2010-11

Recurrent Revenues 7760.5 7670 8195

Non Recurrent Revenues 3489.9 1500 1000

1,000

3,000

5,000

7,000

9,000

11,000

Non recurrent

revenues down

Recurrent revenues up

$ million

1. 76

We are closing the deficit… …this is FISCAL RESPONSABILITY

FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13

$3,490

$2,500

$1,000

$500

BALANCEDBUDGET

Reduction of 71% or$2.5 Bn

Goal

in $

mil

iio

ns

Expenses Budget Proposed

Projection

Source: OMB, Department of the Treasury and the Government Development Bank.7

General Fund Budget

2008-09 2009-10 2010-11

Joint Resolution 5826.8 3554 4009.3

Special Apprppriations 3,627.1 4,116.0 4,185.8

Other Apprppriations 1796.4 0 0

1,000

3,000

5,000

7,000

9,000$8,195.1

$11,250.3

$7,670.0

$ million$1,796.4 M = Non budgeted expenses incurred in FY 2009

1. 98

Proposed budget for FY 10-11 is $2.06 billion less than expenses in FY 08-09

$11,250

$10,170

Deficit

% of Deficit

FY 08-09 FY 09-10 FY 10-11

$3,490 $2,500 $1,000

45% 33% 12%

$2.06 billion

reduction

$9,195

(in $ millions)

Expenses Budget Proposed

Resources allocated for government

Expenses (GF + SF)

$1,796Debt incurred andand not budgeted by past Administration

$9,454 Budget

+

Source: OMB, Department of the Treasury and the Government Development Bank.9

Distribution of Expenses by Concept- FY 2010-11 (General + Stabilization Fund)

Payroll; 4594; 50%

Rent & Utilities, $523.0 , 5.7%Purchased Services,

$280.5, 3.1%

Transporta-tion, $78.5 ,

0.9%

Donations & Subsidies, $209.3 , 2.3%

Equip-ment, $53.5 ,

0.6%

Supplies $112.1 , 1.2%

Contributions to Non Govern-

ment, $162.9 , 1.8%

Incentives & Subsidies;

1813.6; 19.7%

Other; 1367.7; 14.9%($ millions)

10

The FY 2010-11 (General + Stabilization Fund) budget is 18% or $2.1 billion less than FY 2009

2009 2011

$5,501

$4,594

Payroll and Related Expenses

2009 2011

$319

$281

2009 2011

$132

$112

Purchased Services Supplies

2009 2011

$105

$78

Transportation Expenses

2009 2011

$157

$135

2009 2011

$60

$54

Professional Services Purchase of Equipment

-16.5%

-11.9%-15.2%

-10.0%-14.0%

-25.7%

(in $ millions)

11

Federal Funds Distribution

2007-08 2008-09 2009-10 2010-11

Federal Grants 5560.8 5389.7 5820.4 5904.5

Federal Stimulus 0 366.3 1646.7 1025.2

1,000

3,000

5,000

7,000

$ million

12

Human Resources(All Government Branches)

Sep_08 Sep_09 Feb_10 Sep_1050,000

70,000

90,000

110,000

130,000

150,000

170,000

190,000

210,000

230,000

250,000

213,502 201,629

196,991 194,065

(em

ploy

men

t)

13

Human Resources Vs. PayrollExecutive Branch (All Funds)

2008-09 2009-10 2010-11 2008-09 2009-10 2010-11

Employment 191376 179480 172184

Payroll 7459 7166 6904

125,000

175,000

$2,000

$4,000

$6,000

$8,000(Em

ploym

ent)

(Payro

ll $ in

millio

n)

14

YOUR security is priority

Administration of Juvenile Institutions

Police Department

National Guard

Administration of Correctional Facilities

Department of Justice 20%

13%

8%

5%

3%

Budget Increase

Source: OMB

$21

$1

$5

$31

$9

(in $ millions)

15

YOUR right to healthcare

Department of Health,Health Insurance Administration and the

Medical Emergency Corps

Family and Child Services Administration

Budget Increase

Source: OMB

5%

$26

$69

(in $ millions)

18%

16

Preserving OUR culture

Public Broadcasting Corporation of Puerto Rico

Musical Arts Corporation

Music Conservatory

Performing Arts Center

Budget Increase

12%

21%

7%

56%

Source: OMB

$1.6

$1.2

$0.6

$1.2

(in $ millions)

17

Distribution of State Economic Stimulus Funds

Housing Financing Authority

$69.0 (14%)

Economic Development

$202.3 (40%)

Municipalities $115.7 (23%)

Treasury Department $9.0 (2%)

Tourism $15.0 (3%)

Labor and Human Resources Devel-

opment $15.0 (3%)

Aqueduct and Sewer Authority

$12.5 (3%)

Others Agencies $61.5 (12%)

Total=$500 million

18

Distribution of Federal Economic Stimulus – ARRA Funds

Economic Development $186.5 (5%)

Welfare $1,352.5

(37%)

Municipalities $12.7 (0%)

Health $427.8 (12%)

Education $1,080.4

(30%)

Housing $418.3 (11%)

Protection and Safety

$69.3 (2%)

Labor $102.8 (3%)

Total = $3,650.3 million

19