World Economy

Puerto Rico: Cost-Saving Measures

Puerto Rico: Cost-Saving MeasuresPuerto Rico: Cost-Saving Measures

Puerto Rico’s governor has signed a bill letting the island’s 78 municipal governments share administrative services as a cost-saving measure amid a deep fiscal crisis, Reuters reported. The measure amends a 1991 law to let local governments set up agreements between two or more municipalities to cooperate on finance, public works and other areas, instead of each town having a department for each service. Gov. Alejandro Garcia Padilla said that it is expected to result in substantial savings. About $2 billion is spent each year to run the US territory’s town governments, which employ 56,400 workers. Island mayors have backed the new measure as Puerto Rico struggles with nearly $70 billion in debt and a prolonged economic downturn.