Arnold Palacios told the settlement fund trustee that if the Senate does not pass Blas Jonathan Attao’s House Bill 23-104 by April 15, he will have no choice but to suspend the 25 percent supplemental pension payout to retirees through the end of the fiscal year.
Mr. Attao’s bill, which passed the House last week, appropriates $5.2 million from a Commonwealth Economic Development Authority fund in order to pay the 25 percent supplemental.
Governor’s director of communications Frankie Eliptico confirmed that, if passed, the $5.2 million would be enough to avert suspension through August 1.
Mr. Attao told Kandit he verified the $5.2 million revenue source is backed by cash in the bank.
“Since the beginning of this administration, it has been our commitment to continue the 25% payments to the retirees,” Mr. Palacios wrote, but added that additional appropriations are needed to continue making these payments.
“My reprogramming authority is currently limited to funds within the executive branch, and any further reprogramming for the 25% retiree pension payments will place other critical obligations in jeopardy.”
The governor noted in his letter to Joyce Tang, the trustee, that he is open to other legislative solutions. The issue is time.
“Whether the solution comes from H.B. 23-104 or in the form of other revenue bills, we need the partnership of the Legislature to protect our retirees’ livelihoods. My administration cannot do this alone,” the governor said.
“The leaders of the Commonwealth have a collective obligation to safeguard our retirees’ benefits and give them the peace of mind and financial security they deserve,” he added.
CEDA officials did not answer phone calls from Kandit. Kandit sent emails to CEDA’s economic development manager and comptroller to independently verify the availability of cash, however both gentlemen have not replied to the emails as of the publication of this story.
