If Puerto Rico thinks bankruptcy is a better solution, they have a rude awakening coming. One should look no further than the Puerto Rico Electric Power Authority’s (PREPA) pending bankruptcy.
Regardless of their size, the number of residents, or the fiscal problems they have, U.S. cities under fiscal control boards have faced a formula that consists primarily of the firing of public employees, pension cuts, an increase in the cost of college education, and a reduction in essential services, such as health.
The reorganization process of Puerto Rico’s public finances has a direct impact on local nonprofit organizations, especially those to which the government owed money at the time the petition was filed in court earlier this month, according to members of the “Movimiento Una Sola Voz” and the Foundations Network.
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