Puerto Rico’s federal oversight board approved a five-year strategy for the U.S. territory’s financial rehabilitation, all but ensuring a confrontation with Gov. Ricardo Rosselló over new austerity measures, WSJ Pro Bankruptcy reported. The seven-member oversight board installed by Congress certified a fiscal plan covering Puerto Rico’s central government Thursday with one dissenting vote. The financial blueprint includes a 10 percent average cut for beneficiaries of Puerto Rico’s insolvent pension system while reducing spending on social programs, island municipalities and the University of Puerto Rico. Those belt-tightening measures are sure to escalate tensions with Gov. Rosselló, who has opposed reductions in retiree benefits and criticized the oversight board for dictating government policy decisions that he said should remain with local elected officials.
