New austerity measures are looming for storm-battered Puerto Rico after legislators refused to change labor laws as ordered by a federal control board overseeing the U.S. territory’s finances amid an 11-year recession.
The board said Friday that it will eliminate a $25 million scholarship fund for the island’s largest public university, as well as a $50 million annual fund for municipalities. In addition, the board said it will scrap an annual Christmas bonus for all government employees starting next fiscal year.
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Gov. Ricardo Rossello did not immediately respond to a request for comment.
The board also said it would implement its own budget for Puerto Rico if legislators do not submit a proposal by Saturday that is consistent with a recently approved fiscal plan.
