Puerto Rico Gov. Ricardo Rosselló went to court on Thursday to challenge the budget imposed by the Oversight Board for the fiscal year that started this week, saying that the panel had overstepped its authority, The Bond Buyer reported. Rosselló filed an adversary complaint in the U.S. District Court in Puerto that's handling the Title III bankruptcy cases to defend the budget approved by the local legislature. The board defended its authority, citing the 2016 legislation intended to help the island manage its economy and restructure its debt. “The Financial Oversight and Management Board for Puerto Rico approved and certified a commonwealth budget for fiscal year 2019 in compliance with the certified fiscal plan and in accordance with [the Puerto Rico Oversight, Management, and Economic Stability Act] to put Puerto Rico on the road to recovery. The Oversight Board will vigorously defend against any suit attempting to thwart the carrying out of the budget and fiscal plan.” On June 30 the board approved its own version of the budget by unanimous written consent and declared it to be the valid budget for Puerto Rico. The budget allocated $8.758 billion for the General Fund and $20.664 billion for Puerto Rico’s consolidated budget. The budget was supposed to go into effect on Sunday, July 1.
