Table Of ContentLATIN AMERICAN POLITICAL, ECONOMIC, AND SECURITY ISSUES
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LATIN AMERICAN POLITICAL, ECONOMIC, AND SECURITY ISSUES
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UERTO ICO
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ROBERT MERRILL
EDITOR
New York
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CONTENTS
Preface vii
Chapter 1 Puerto Rico: Information on How Statehood
Would Potentially Affect Selected Federal
Programs and Revenue Sources 1
United States Government Accountability Office
Chapter 2 Puerto Rico’s Political Status and the 2012
Plebiscite: Background and Key Questions 143
R. Sam Garrett
Index 163
PREFACE
Chapter 1 - Puerto Rico has access to many federal programs, and is
subject to certain federal tax laws; however, for some programs and for some
aspects of tax law, Puerto Rico is treated differently than the states. Options
for Puerto Rico’s political status include statehood.
GAO was asked to review potential fiscal implications for federal
programs if Puerto Rico were to become a state. This report examines
potential changes to selected federal programs and related spending changes,
and changes to selected federal revenue sources that would be expected should
Puerto Rico become a state. This report also discusses economic and fiscal
factors under statehood that could influence changes in spending and revenues.
To evaluate potential changes to selected federal programs and revenue
sources, GAO reviewed federal laws and regulations and interviewed federal
and Puerto Rico agency officials. To discuss factors that could influence
changes in spending and revenue, GAO reviewed economic data from Puerto
Rico’s government and interviewed officials from the current and past Puerto
Rico government administrations.
Chapter 2 - For the first time since 1998, voters in Puerto Rico went to the
polls in November 2012 to reconsider the island’s relationship with the federal
government (a concept known as “political status”). Voters were asked to
answer two questions: (1) whether they wished to maintain Puerto Rico’s
current political status; and (2) regardless of the choice in the first question,
whether they preferred statehood, independence, or to be a “sovereign free
associated state.” According to results certified by the Puerto Rico State
Elections Commission, approximately 54.0% of those who cast ballots
answered “no” to the first question. In the second question, approximately
viii Robert Merrill
61.2% of voters chose statehood. The island’s new governor and territorial
legislature contend that the results were “inconclusive.”
The plebiscite results are potentially significant if they are interpreted to
mark the electorate’s desire to change the island’s present political status. The
significance of the plebiscite remains to be seen, however, particularly because
in the same election in which voters arguably endorsed a change in the status
quo and favored statehood, they also voted out the pro-statehood incumbent
governor and former Resident Commissioner, Luis Fortuño, as well as
majorities in the territorial legislature believed to be generally supportive of
statehood. No change in Puerto Rico’s political status could occur without
congressional action.
