§2141 Approval of Fiscal Plans

Summary

The Oversight Board must give the Governor a schedule, as soon as the Board is fully appointed each year, for making, sending, approving, and certifying Fiscal Plans. The Board will talk with the Governor about the dates, but the Board alone decides the final schedule and can change it later. The schedule can also cover how to revise a Fiscal Plan that has already been certified. A Fiscal Plan must show how the territory or its agencies will get its finances under control and regain access to capital markets. It must include revenue and spending estimates that follow agreed accounting rules and that are based on current laws or on specific bills that must be passed. The plan must fund essential services and public pensions, fix structural deficits, and, when a stay under subchapters III or IV is not in effect, show a sustainable debt level. It must improve financial rules and controls, set and make targets achievable, include independent revenue forecasts and a debt sustainability analysis, and fund capital investments that promote growth. The plan must follow Oversight Board recommendations, include other information the Board needs, prevent certain transfers of assets unless allowed by the territory’s constitution, an approved plan of adjustment under subchapter III, or a Qualifying Modification under subchapter VI, and respect lawful priorities or liens in effect before June 30, 2016. A Fiscal Plan must cover at least 5 fiscal years from the year it is certified. The Governor must send a proposed plan by the Board’s schedule. The Board will approve it or give a notice of violations with time to fix them. If the Governor does not provide an acceptable plan in time, the Board will make one and it will be treated as approved, with a compliance certification sent to the Governor and the Legislature. If the Governor and the Board jointly create and agree on a plan, that plan will be the Fiscal Plan for the year.