CONTRIBUTIONS TO MUNICIPALITIES.

LEGAL AUTHORITY

Act. No. 34 of June 12, 1969, as amended, assigned funds to pay for Christmas bonuses to all Commonwealth of Puerto Rico functionaries, employees and the Legislative Assembly, including public corporations and municipal personnel. Act. No. 80 of August 30, 1991, as amended, known as the Municipal Income Collection Centers Law, established a Municipal Income Matching Fund. Act. No. 83 of August 30, 1991, as amended, known as Municipal Property Tax Law, indemnifies municipalities for existing tax exemptions. It also allocated funds to municipalities for subsidizing part of the costs for services offered to citizens, to cover operational costs and for permanent improvement works.

PROGRAMMATIC STRUCTURE

Contributions to Municipalities has no programmatic structure, its the result of public policy that addresses specific needs as provided by the aforementioned special laws and the non-reoccurring funding allocations.

FISCAL YEAR 2011-2012 ADOPTED BUDGET

The adopted consolidated budget for Fiscal Year 2011-2012 is $389,620,000. The funds come from the Special Appropiations-General Fund. The funds reflect an increase of $25,725,000 in comparison with the Fiscal Year 2010-2011 budget. This increase will allow for the fullfillment of commitments to the Municipal Income Matching Fund, municipal operational expenses, payment of the employee Christmas bonuses, among others. It should be noted that permanent improvement funds reflect a reduction of $1,385,000. This reduction is due to the culmination of improvement projects in several municipalities.

SUMMARY OF FUNDING ALLOCATIONS

Consolidated Budget  (thousands $) 2009 2010 2011 2012

 

Program  
Operational Expenses Actual Actual Budget Adopted
Contribution to the municipality of Las Maras to subsidize operational expenses 500 500 500 500
Contribution to the municipality of Loiza to subsidize operational expenses 600 1,600 600 1,100
Contributions to Municipalities to address other needs 649 1,250 300 4,203
Subtotal, Operational Expenses 1,749 3,350 1,400 5,803
 
Subsidies, Incentives and Donations
Compensate municipalities for the exemption from property tax 141,639 140,626 145,987 148,491
Contribution to the equalization municipal fund 200,550 167,725 183,178 204,825
Contribution to the Municipalities to pay the Christmas Bonus 25,500 26,750 26,066 26,500
Contribution to the municipality of Culebra to subsidize operational expenses 550 550 550 550
Contribution to the municipality of Culebra to subsidize regular and emergency air transportation services to the Island 75 75 75 75
Contribution to the municipality of Maricao to subsidize operational expenses 500 800 500 500
Contribution to the municipality of Vieques to subsidize air transportation services to San Juan and Fajardo 356 200 200 200
Contribution to the municipality of Vieques to subsidize operational expenses 2,676 2,676 2,676 2,676
Contributions to Municipalities to address other needs 660 26,000 0 0
Education and development of bilingual citizens, San Juan 0 750 750 0
Subtotal, Subsidies, Incentives and Donations 372,506 366,152 359,982 383,817
 
Capital Improvements
Contributions to Municipalities (Pork Barrel) 0 0 1,385 0
Contributions to Municipalities to address other needs 0 115,682 0 0
Subtotal, Capital Improvements 0 115,682 1,385 0
Total, Program 374,255 485,184 362,767 389,620
 
Funding Sources  
Operational Expenses  
Special Appropriations - General Fund 1,100 3,350 1,400 5,803
Federal Grants 649 0 0 0
Subtotal, Operational Expenses 1,749 3,350 1,400 5,803
 
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 372,506 366,152 359,982 383,817
Subtotal, Subsidies, Incentives and Donations 372,506 366,152 359,982 383,817
 
Capital Improvements  
Special Appropriations - General Fund 0 0 1,385 0
Other Income 0 115,682 0 0
Subtotal, Capital Improvements 0 115,682 1,385 0
Total, Funding Sources 374,255 485,184 362,767 389,620
 
Expense Category  
Operational Expenses  
Donations, Subsidies, and Distributions 1,749 3,350 1,400 4,950
Non Distributed Allocations 0 0 0 853
Subtotal, Operational Expenses 1,749 3,350 1,400 5,803
 
Subsidies, Incentives and Donations  
Contributions to Non Governmental Entities 660 26,000 0 0
Incentives and Subsidies for Services to Citizens 371,846 340,152 359,982 383,817
Subtotal, Subsidies, Incentives and Donations 372,506 366,152 359,982 383,817
 
Capital Improvements  
Capital Improvements Program 0 115,682 1,385 0
Subtotal, Capital Improvements 0 115,682 1,385 0
Total, Expense Category 374,255 485,184 362,767 389,620

SUMMARY OF RESOURCES BY PROGRAM

Contributions to Municipalities to address other needs

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Federal Grants 649 0 0 0
Special Appropriations - General Fund 0 1,250 300 4,203
Subtotal, Operational Expenses 649 1,250 300 4,203
 
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 660 26,000 0 0
Subtotal, Subsidies, Incentives and Donations 660 26,000 0 0
 
Capital Improvements  
Other Income 0 115,682 0 0
Subtotal, Capital Improvements 0 115,682 0 0
Total, Funding Sources 1,309 142,932 300 4,203
 
Expense Category  
Operational Expenses  
Donations, Subsidies, and Distributions 649 1,250 300 3,350
Non Distributed Allocations 0 0 0 853
Subtotal, Operational Expenses 649 1,250 300 4,203
 
Subsidies, Incentives and Donations  
Contributions to Non Governmental Entities 660 26,000 0 0
Subtotal, Subsidies, Incentives and Donations 660 26,000 0 0
 
Capital Improvements  
Capital Improvements Program 0 115,682 0 0
Subtotal, Capital Improvements 0 115,682 0 0
Total, Expense Category 1,309 142,932 300 4,203
 

Contribution to the municipality of Culebra to subsidize regular and emergency air transportation services to the Island

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 75 75 75 75
Subtotal, Subsidies, Incentives and Donations 75 75 75 75
Total, Funding Sources 75 75 75 75
 
Expense Category  
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 75 75 75 75
Subtotal, Subsidies, Incentives and Donations 75 75 75 75
Total, Expense Category 75 75 75 75
 

Contribution to the municipality of Vieques to subsidize air transportation services to San Juan and Fajardo

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 356 200 200 200
Subtotal, Subsidies, Incentives and Donations 356 200 200 200
Total, Funding Sources 356 200 200 200
 
Expense Category  
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 356 200 200 200
Subtotal, Subsidies, Incentives and Donations 356 200 200 200
Total, Expense Category 356 200 200 200
 

Contribution to the Municipalities to pay the Christmas Bonus

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 25,500 26,750 26,066 26,500
Subtotal, Subsidies, Incentives and Donations 25,500 26,750 26,066 26,500
Total, Funding Sources 25,500 26,750 26,066 26,500
 
Expense Category  
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 25,500 26,750 26,066 26,500
Subtotal, Subsidies, Incentives and Donations 25,500 26,750 26,066 26,500
Total, Expense Category 25,500 26,750 26,066 26,500
 


Contribution to the municipality of Culebra to subsidize operational expenses

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 550 550 550 550
Subtotal, Subsidies, Incentives and Donations 550 550 550 550
Total, Funding Sources 550 550 550 550
 
Expense Category  
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 550 550 550 550
Subtotal, Subsidies, Incentives and Donations 550 550 550 550
Total, Expense Category 550 550 550 550
 

Contribution to the municipality of Las Maras to subsidize operational expenses

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Special Appropriations - General Fund 500 500 500 500
Subtotal, Operational Expenses 500 500 500 500
Total, Funding Sources 500 500 500 500
 
Expense Category  
Operational Expenses  
Donations, Subsidies, and Distributions 500 500 500 500
Subtotal, Operational Expenses 500 500 500 500
Total, Expense Category 500 500 500 500
 

Contribution to the municipality of Loiza to subsidize operational expenses

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Operational Expenses  
Special Appropriations - General Fund 600 1,600 600 1,100
Subtotal, Operational Expenses 600 1,600 600 1,100
Total, Funding Sources 600 1,600 600 1,100
 
Expense Category  
Operational Expenses  
Donations, Subsidies, and Distributions 600 1,600 600 1,100
Subtotal, Operational Expenses 600 1,600 600 1,100
Total, Expense Category 600 1,600 600 1,100
 

Contribution to the municipality of Maricao to subsidize operational expenses

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 500 800 500 500
Subtotal, Subsidies, Incentives and Donations 500 800 500 500
Total, Funding Sources 500 800 500 500
 
Expense Category  
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 500 800 500 500
Subtotal, Subsidies, Incentives and Donations 500 800 500 500
Total, Expense Category 500 800 500 500
 

Contribution to the municipality of Vieques to subsidize operational expenses

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 2,676 2,676 2,676 2,676
Subtotal, Subsidies, Incentives and Donations 2,676 2,676 2,676 2,676
Total, Funding Sources 2,676 2,676 2,676 2,676
 
Expense Category  
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 2,676 2,676 2,676 2,676
Subtotal, Subsidies, Incentives and Donations 2,676 2,676 2,676 2,676
Total, Expense Category 2,676 2,676 2,676 2,676
 

Contribution to the equalization municipal fund

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 200,550 167,725 183,178 204,825
Subtotal, Subsidies, Incentives and Donations 200,550 167,725 183,178 204,825
Total, Funding Sources 200,550 167,725 183,178 204,825
 
Expense Category  
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 200,550 167,725 183,178 204,825
Subtotal, Subsidies, Incentives and Donations 200,550 167,725 183,178 204,825
Total, Expense Category 200,550 167,725 183,178 204,825
 

Education and development of bilingual citizens, San Juan

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 0 750 750 0
Subtotal, Subsidies, Incentives and Donations 0 750 750 0
Total, Funding Sources 0 750 750 0
 
Expense Category  
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 0 750 750 0
Subtotal, Subsidies, Incentives and Donations 0 750 750 0
Total, Expense Category 0 750 750 0
 

Compensate municipalities for the exemption from property tax

Budget (thousands $) 2009 2010 2011 2012

 

Funding Sources  
Subsidies, Incentives and Donations  
Special Appropriations - General Fund 141,639 140,626 145,987 148,491
Subtotal, Subsidies, Incentives and Donations 141,639 140,626 145,987 148,491
Total, Funding Sources 141,639 140,626 145,987 148,491
 
Expense Category  
Subsidies, Incentives and Donations  
Incentives and Subsidies for Services to Citizens 141,639 140,626 145,987 148,491
Subtotal, Subsidies, Incentives and Donations 141,639 140,626 145,987 148,491
Total, Expense Category 141,639 140,626 145,987 148,491