|By PR Newswire||
|January 8, 2014 05:07 PM EST||
Results Driven by Payroll Reduction and Department of Education Measures
SAN JUAN, Puerto Rico, Jan. 8, 2014 /PRNewswire-USNewswire/ -- Today, Carlos D. Rivas, the Director of the Office of Management and Budget of Puerto Rico (OMB), reported that Fiscal Year 2014 expenses for July through November were under budget, driven by a 6 percent decline in year-over-year payroll chargeable to the General Fund of the Commonwealth of Puerto Rico, and the implementation of a fiscal improvement program at the Department of Education.
"The favorable expenditure results for the first five months of the fiscal year are a testament to this Administration's commitment to fiscal responsibility and discipline," stated Rivas. "Together with the Puerto Rico Treasury's on-target revenue results, the Commonwealth's Fiscal Year 2014 budget has performed as expected on both sides of the ledger."
Payroll expenses chargeable attributed to the Commonwealth's General Fund for the months of July 2013 through November 2013 totaled $962 million, which is $65 million (or 6 percent) below the same period for the prior fiscal year. The prior year expense was adjusted downwards by $72 million for this comparison, since the employee Christmas bonuses were paid in November last fiscal year and were paid in December in the current year. OMB estimates that there were 8,300 net fewer employees in Executive Branch agencies directly chargeable to the General Fund in November 2013 as compared to November 2012, with 94 percent of the attrition occurring after the current Administration began in January 2013.
"The substantial decline in year-over-year General Fund headcount has been achieved without resorting to layoffs or reducing essential services to the population," noted Rivas. "The central agencies of the Commonwealth have demonstrated remarkable fiscal discipline to date in recruiting replacement employees."
With respect to the approved fiscal year 2014 budget, payroll for the first five months was $19 million (or 2 percent) under budget. The total year-over-year payroll decline does not flow down to a payroll surplus for the period because the current budget had already built in some of the projected attrition.
"The majority of the increase in the approved General Fund budget corresponds to financial obligations that we already had, such as incremental debt service and retirement contributions, which could not be further postponed," Rivas said. "The General Fund budget increase did not imply a higher net operating cost for the Commonwealth agencies; quite the contrary, it was built upon and required the discipline that we have been exercising over the past year."
Driven by payroll figures, OMB estimates that from July to November, overall General Fund expenses against Fiscal Year 2014 appropriations were lower than the approved balances in the Fiscal Year 2014 budget by approximately $135 million. "We expect this surplus to narrow very substantially as we continue to issue liquidation payments for retired employees, and register further back-loaded expenses," said Rivas. "However, we do not presently expect the surplus to fully disappear." This expectation considers a successful implementation of the fiscal management program at the Department of Education; the availability of carryforward and non-General Fund appropriation balances, particularly at the Department of Education; the utilization of contingency accounts in the General Fund budget, including all or part of the $130 million set-aside for sick and vacation leave liquidation; and continued strict hiring oversight by OMB.
Rivas also highlighted two strategic initiatives on the expense side that are yielding results. First, the Department of Education, the largest and traditionally the most challenging agency from a budgetary perspective, has embarked on an important fiscal management program, including well-publicized adjustments in security, non-essential services and contracting rates, which OMB expects to materially neutralize any expected overdraft at the agency. The Department continues to develop further fiscal opportunities in the federal funds utilization, transportation, and real estate areas.
In addition, the Administration has undertaken important steps to balance the finances of subsidized public corporations. In December 2013, the Governor presented a legislative measure to merge the Maritime Transit Authority, the Metropolitan Bus Authority and the Integrated Transit Authority (Urban Train) into a single entity with improved cost efficiencies, better governance, and dedicated transitional and recurring funding. In July 2013, the Administration implemented in July a new Third Party Administration model across the island whose cost efficiencies, combined with other cost-cutting and revenue measures, have lowered the forecasted deficit of the Public Health Insurance Administration to less than 2.5 percent of revenues. The Governor also signed an Executive Order to re-engineer the Medical Services Administration, which provides direct support and shared services to certain public health institutions.
While these public corporations have the option to fund their expenses with substantial fee income or with their own balance sheet, continued success of these initiatives reduces the need for potential large-scale deficit financings, which have been covered in the past with long term General Fund appropriation debt.
"Puerto Rico continues to pursue, in a determined fashion, our goal to move all our public entities, whether General Fund agencies or public corporations, away from deficits and towards fiscal sustainability," said Rivas.
The payroll numbers exclude teachers chargeable to the Schoolwide Department of Education mixed state-federal funding pool, which is not classified as payroll within the accounting system (but rather as a non-distributed appropriation), and whose salaries represent close to 10.5 percent of the General Fund budget. In addition, the payroll numbers exclude the payroll of autonomous non-Executive Branch entities such as the University of Puerto Rico, the Judicial Branch, and other smaller agencies, who receive fixed monthly wired payments, totaling approximately $1,410 million, or 14.4 percent of the General Fund budget. The headcount figures do include all full time Executive Branch employees chargeable to the General Fund, including all Department of Education employees. When estimating mid-year expenditure performance, OMB adjusts for multiple timing factors, including the impact of fiscal year contracting cycle on service expenses and analogous concepts; the availability and utilization pattern of discretionary reserve or contingency accounts; utilization of carryforward special appropriation balances; and ramp-up periods for programmatic appropriations.
SOURCE Office of Management and Budget of Puerto Rico
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Oct. 21, 2016 04:15 PM EDT Reads: 1,461
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Oct. 21, 2016 04:15 PM EDT Reads: 902
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captu...
Oct. 21, 2016 04:00 PM EDT Reads: 1,457
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
Oct. 21, 2016 04:00 PM EDT Reads: 2,671
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and...
Oct. 21, 2016 03:54 PM EDT
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining senso...
Oct. 21, 2016 03:31 PM EDT
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 21, 2016 03:15 PM EDT Reads: 258
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Oct. 21, 2016 03:00 PM EDT Reads: 4,353
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 21, 2016 03:00 PM EDT Reads: 11,142
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Oct. 21, 2016 02:30 PM EDT Reads: 1,399
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
Oct. 21, 2016 02:15 PM EDT Reads: 1,427
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, will discuss the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docke...
Oct. 21, 2016 02:15 PM EDT Reads: 2,196
SYS-CON Events announced today that Embotics, the cloud automation company, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
Oct. 21, 2016 02:00 PM EDT Reads: 631
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Oct. 21, 2016 02:00 PM EDT Reads: 6,778
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Oct. 21, 2016 02:00 PM EDT Reads: 570