Facing declining enrollment, a bloated pension system and more than $341 million in debt, the University of Puerto Rico needs to cut spending, boost revenue and reduce its retirement obligations, a federally-appointed oversight board said yesterday as it unveiled its 2020 fiscal plan for the institution, Bloomberg News reported. The plan acknowledges the university’s financially-fragile state — and the impact of the coronavirus, which has paralyzed activity on much of the island. As a result, the oversight board recommended maintaining Puerto Rico government support for the university system at current levels of about $879 million, delaying planned reductions for a year. In addition, previously scheduled tuition and fee increases were also postponed by a year. With 11 campuses and almost 13,000 employees, UPR is seen as one of the drivers of Puerto Rico’s economy, and it’s one of the few commonwealth entities that continues to pay its bondholders as the island tries to claw its way out of bankruptcy.
