[Congressional Record (Bound Edition), Volume 157 (2011), Part 5]
[House]
[Pages 7034-7035]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      PUERTO RICO'S COMEBACK STORY

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Puerto Rico (Mr. Pierluisi) for 5 minutes.
  Mr. PIERLUISI. Madam Speaker, the United States stands at a 
crossroads. Responsible leaders recognize that a bipartisan fiscal 
strategy must be crafted to reduce deficits. A deal will require 
courage on the part of its proponents, because each revenue raiser and 
spending cut is bound to trigger opposition.
  Unless officials can persuade voters that sacrifice and self-
restraint now are essential for stability and strength later, a deal 
will not happen. Even with public buy-in, leaders must be ready to take 
action, despite the political perils, and be prepared to raise the 
national interest above their personal interests and reelection. It 
will not be easy, but it must be done.
  For officials in Washington who are in search of a comeback story, I 
suggest the case of Puerto Rico. In January 2009, the U.S. territory 
stood on the brink of disaster. The new government had inherited a 
deficit of $3.3 billion.

[[Page 7035]]

As a percentage of revenue, this was the largest deficit of any U.S. 
administration. The new administration was even forced to take a loan 
to meet its first payroll. Major rating agencies had downgraded Puerto 
Rico's credit to near junk status. Simply put, the island's economy was 
about to implode.
  Leaders in San Juan faced a stark choice. Like their predecessors, 
they could usher Puerto Rico down this unsustainable path, paralyzed by 
the fear that tough choices would antagonize voters; or they could 
place their responsibility to protect Puerto Rico's future above their 
desire to preserve their poll numbers.
  Fortunately for Puerto Rico, the new leadership chose the right 
course. For 2-plus years, Governor Luis Fortuno and the island's 
legislature have taken decisive action to impose fiscal discipline and 
create a leaner, more responsible government. They have cut government 
spending by nearly 20 percent, sharply reducing the deficit as a 
percentage of revenue. Indeed, by this metric, the island has moved 
from last in the Nation to a fiscal position that is better than 30 
States. The rating agencies have rewarded Puerto Rico's progress, with 
Moody's giving the island its highest rating in 35 years.
  To achieve savings, the government cut expenses and political 
appointments and was compelled to reduce its payroll. In my experience, 
rational leaders do not lay off workers because they think this will 
play to their political advantage. To the contrary, few actions are 
likely to arouse greater public displeasure. After all, work does more 
than put bread on the family table. It gives men and women dignity and 
a sense of purpose. But the Government of Puerto Rico's actions were 
absolutely necessary and were taken despite serious political risks.
  Measures were taken to cushion the blow for those workers who were 
let go, and layoffs did not include teachers or first responders. More 
importantly, the government factions prevented an economic disaster, 
which would have resulted in far greater suffering and job loss.
  It is important to emphasize that these decisions were not partisan. 
Governor Fortuno is a Republican and I, as Puerto Rico's only 
Representative in Congress, am a proud Democrat, and I supported his 
policies. The island legislators who voted to advance this agenda are 
affiliated with both national parties. And unlike in some States, 
Puerto Rico's leaders did not politicize ARRA or other Federal funding 
which served as a lifeline for the island. Rather, they have worked to 
put every dollar to good use.
  So for leaders in Washington who say it will be impossible to achieve 
bipartisanship in the budget debate, the case of Puerto Rico should 
provide a measure of hope. As it nurses the economy back to health, the 
Puerto Rico Government is also advancing a long-term, pro-growth 
strategy. For example, the government has reduced individual and 
corporate tax rates and ensured that everyone contributes their fair 
share; boosted sales of housing and commercial properties through other 
incentives; and worked to address Puerto Rico's high energy costs and 
dependence on foreign oil, including through the development of a 
natural gas pipeline that will create thousands of jobs, lower carbon 
emissions and significantly reduce energy bills for individuals and 
companies on the island.
  In closing, Puerto Rico's leadership has proven that it is possible 
to work across party lines to control spending and create growth. I 
urge my colleagues in this Chamber to work in this same spirit and to 
set aside partisan differences to secure the long-term fiscal health of 
the country we love.

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