Subject: Re: BACKGROUND: Puerto Rico
From: Amanda Renteria <[email-masked]>
To: "Ann O'Leary" <[email-masked]>
Cc: Bonnie Rubin <[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: Sat, 4 Jul 2015 08:10:25 -0700

Yes.

Sent from my iPhone

On Jul 4, 2015, at 7:41 AM, Ann O'Leary <[email-masked]> wrote:

Thanks, Bonnie! I hope everyone enjoys a nice 4th!

Yes, that time on Monday works for me.

On Sat, Jul 4, 2015 at 7:26 AM, Bonnie Rubin <[email-masked]>
wrote:

> Hi Everyone,
>
> Secretary Clinton has requested this call be scheduled for this coming
> Monday, July 6th.
>
> Please let me know if 2:15pm ET on Monday would work for this call.
>
> Thank you,
> Bonnie
>
>
>
>
>
> On Jul 3, 2015, at 10:32 PM, Amanda Renteria <[email-masked]>
> wrote:
>
> 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>
>
>

-- 
Ann O'Leary
Senior Policy Advisor
Hillary for America
Cell: 510-717-5518