Subject: Re: BACKGROUND: Puerto Rico
From: Amanda Renteria <[email-masked]>
To: Bonnie Rubin <[email-masked]>
Cc: "Ann O'Leary" <[email-masked]>, Huma Abedin <[email-masked]>, Jake Sullivan <[email-masked]>, John Podesta <[email-masked]>, Robby Mook <[email-masked]>, Jennifer Palmieri <[email-masked]>, Kristina Schake <[email-masked]>, Brian Fallon <[email-masked]>
Date: Fri, 3 Jul 2015 22:32:46 -0400

i will not have cell coverage starting at about 6pm EST tomorrow.
and back in service at around 1am EST.
at a wedding in Seattle.

all other times work.

On Fri, Jul 3, 2015 at 10:25 PM, Bonnie Rubin <[email-masked]>
wrote:

> Hi All,
>
> I'm working on a time and will let you know as soon as possible. I'll also
> send a call in number.
>
> Thank you,
> Bonnie
>
>
>
> On Jul 3, 2015, at 9:51 PM, Ann O'Leary <[email-masked]>
> wrote:
>
> Thanks. Let's do it tomorrow so we can rework it if needed and get it out
> on Monday. Amanda and I both need to be on call.
>
>
> Ann O’Leary
> Sent from my iPhone
> (510) 717-5518 (cell)
>
> On Jul 3, 2015, at 6:24 PM, Huma Abedin <[email-masked]> wrote:
>
> Minus HRC
> She has lots of questions about this statement.
> Doesn't want to put it out till we have a conversation.
> Bonnie will reach out to schedule a call. Ann, Do you want to do Monday or
> tomorrow if it can't wait so long.
>
> Sent from my iPhone
>
> On Jul 2, 2015, at 4:40 PM, Ann O'Leary <[email-masked]>
> wrote:
>
> Madame Secretary -
>
> Amanda and I have been working on the Puerto Rico debt and health care
> crisis in order to advise you politically and substantively on making a
> public statement on the matter.  Per your good advice, I've spoken several
> times to Dick Ravitch (who is very involved in the situation both advising
> the Governor of Puerto Rico, as well as in regular conversation with
> Secretary Lew about it) and Amanda has been in regular touch with Jeff
> Farrow, who you may remember was President Clinton's special advisor on
> Puerto Rico and still does a tremendous amount of work on PR issues.
>
> With their expert counsel, we have drafted a statement for your review,
> which I am attaching and pasting below (and also sending under separate
> clean email for your quick review).  A couple of important points to note
> on messages we want to convey:
>
> (1) All agree that we need to make clear the Puerto Ricans are American
> Citizens and we must express empathy and bring the power of the federal
> government to the table to provide them with tools and supports to get out
> of this crisis and on a path to prosperity;
>
> (2) On Chapter 9 bankruptcy and debt restructuring. Dick Ravitch wants to
> make sure that you understand that the current bill put forward by the PR
> Congressional Rep. Pedro Pierluisi would only allow PR to grant Chapter 9
> bankruptcy reorganization to their publicly owned companies (e.g. water,
> electricity and highway authorities) and municipalities (in the same way
> States can provide this authority to cities - e.g. Detroit and Stockton),
> but would not give the authority to PR itself.  Dick feels strongly that PR
> is ultimately going to need this authority themselves, but that politically
> it will be hard to get for two reasons: (1) giving it to PR is
> acknowledgement that PR is not a state and is distinct from states, which
> are prohibited from declaring bankruptcy under the Constitution; (2) the
> hedge funds have invested in PR itself, whereas mutual funds have
> investment in the utilities - hedge funds are hoping that the debt
> restructuring happens in the government entities to free up dollars to make
> them entirely whole.  Despite these constraints, Dick's advice is to make
> clear that you recognize that PR needs debt restructuring authority under
> Chapter 9 and call for support of the bill as a first step.
>
> (3) Health - In 2008, you made very clear that you support full parity
> with Puerto Rico on Medicare and Medicaid.  Since this time, the health
> crisis has heightened -- 60 percent of Puerto Ricans rely on Medicaid or
> Medicare to get their health insurance, and we have continued to underfund
> them so that doctors are fleeing the island and residents are fleeing to
> relocate to Florida in order to seek health care.  As a bargain in the ACA
> negotiations, PR was given a $6.5 billion Medicaid grant that was supposed
> to last them until 2019, but they are expected to use this money up by the
> end of 2017.  And they now have 75 percent of their Medicare recipients on
> Medicare Advantage, but the government announced an 11 percent cut in
> premium subsidies to MA which will impact their access. We believe that you
> should recommit to parity, but recognize that we need to start on a
> "pathway to parity."  Chris Jennings and I did a back of the envelope
> estimate (CBO has scored parity) and guess that it could cost $40-50
> billion over 10 years to get there so we want to be careful about
> overcommitting.
>
> (4) On the politics, Jeff Farrow and others strongly have urged us to make
> your position clear on allowing Puerto Ricans to express their will on the
> question of statehood (same thing you said in 2008).  We have included this
> sentiment in the final paragraph and I'm also attaching some background
> pulled together by our policy team on the PR statehood vote in 2012 and the
> DOJ money allocated for a vote in 2014.  This memo also includes
> information on what the other candidates have said on the debt crisis and
> statehood question.
>
> Please let Amanda or me know if you have questions and let us all know
> whether you APPROVE of this statement below and attached.
>
> Thanks,
> Ann
>
> *DRAFT HRC Statement on Puerto Rico Debt Crisis*
>
> *July 2, 2015*
>
>
>
> The people of Puerto Rico, our fellow American Citizens, are hurting right
> now under a weak economy that has been struggling for years. Puerto Ricans
> are proud American citizens who work hard and contribute to our Nation
> every day and they deserve a chance to get ahead.  Congress and the Obama
> Administration need to partner with Puerto Rico by providing real support
> and tools so that Puerto Rico can do the hard work it will take to get on a
> path toward stability and prosperity.
>
>
>
> The challenge is multi-faceted, and will ultimately require broad
> authority to allow Puerto Rico to restructure its debt and pay back its
> debtors in an orderly fashion.  As a first step, Congress should
> provide Puerto Rico the same authority that states already have to enable
> severely distressed government entities to restructure their debts under
> Chapter 9 of the Bankruptcy Code.  This authority would allow Puerto Rico
> to provide a debt-restructuring tool to its municipalities and public
> agencies, including the three largest government corporations – the
> electricity, water and sewer, and highway authorities – which hold over a
> quarter of all the government debt.
>
>
>
> We're not talking about a bailout, we're talking about a fair shot at
> success.
>
>
>
> We also have to step back and look hard at how Puerto Rico’s economy
> arrived at this dire situation.  The deficit is a consequence of an economy
> that has lagged that of the States for decades and shrunk for eight of the
> last nine years.  Puerto Rico needs a longer-term plan to address a
> declining population, eroding employment base, high utility rates and the
> impact of unequal federal investments.  It will take tough decisions and
> real economic reforms.
>
>
>
> But we should also recognize that the inconsistent — and incoherent —
> treatment of Puerto Rico in federal laws and programs has substantially
> contributed to the economic decline.  One troubling example of this
> treatment is the lack of equity in federal funding for Puerto Rico under
> Medicaid and Medicare.  This problem has been demonstrated in recent months
> by a scheduled cut in Medicare Advantage premium reimbursement rates.  In
> 2008, I called for an end to the disparate treatment of Puerto Rico in
> federal health programs.  Today, I renew that call, and commit to helping
> Puerto Ricans get on a path towards equitable treatment under Medicaid and
> Medicare.
>
>
>
> Underlying all of this is the fundamental question of Puerto Rico’s
> ultimate future. That question needs to be resolved in accordance with the
> expressed will of our fellow citizens, the people of Puerto Rico. And let’s
> not forget that no matter the outcome, Puerto Ricans will remain proud
> Americans who contribute to our Nation every day.
>
>
>
>
>
>
>
> --
> Ann O'Leary
> Senior Policy Advisor
> Hillary for America
> Cell: 510-717-5518
>
> <Puerto Rico Status and Candidate Statements.docx>
>
> <Puerto Rico Statement - DRAFT for HRC Review.docx>
>
>

-- 
Amanda Renteria
National Political Director
Hillary for America #Hillary2016
559-426-5756 (o)
650-868-1188 (c)
Facebook <https://www.facebook.com/renteriaforcongress> or Twitter
<https://twitter.com/AmandaRenteria>