Subject: Draft PR Statement
From: "Ann O'Leary" <[email-masked]>
To: John Podesta <[email-masked]>, Robby Mook <[email-masked]>, Jennifer Palmieri <[email-masked]>, Kristina Schake <[email-masked]>, Brian Fallon <[email-masked]>
Cc: Jake Sullivan <[email-masked]>, Maya Harris <[email-masked]>, Dan Schwerin <[email-masked]>, Amanda Renteria <[email-masked]>
Date: Wed, 1 Jul 2015 21:39:16 -0700

John, Robby, Jen, Kristina & Brian -

Here is a final draft of a statement from HRC on the Puerto Rico
situation.  Amanda and I worked closely together on the politics and policy
to get it right and got good edit/input from Jake and Dan. We feel good
about this draft.  But take a look and let us know if you have
comments/edits. Someone should also run by HRC.

Puerto Rico's debt is a national as well as a local problem. Congress and
the Obama Administration need to partner with Puerto Rico to do the hard
work it will take to get on a path toward stability and prosperity.

The solution for Puerto Rico is not a bailout, it is giving Puerto Rico a
fair shot at success. Much of this debt is owed by three government
corporations – the electricity, water and sewer, and highway authorities.
Congress should pass the “Puerto Rico Chapter 9 Uniformity Act,” which
would give Puerto Rico the same authority States have to enable severely
distressed government entities to restructure their debts.

We also have to 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.  The
islands need a longer-term plan to address a declining population, erosion
of their employment base, high utility rates and the disparate impact of
federal programs.  Puerto Rico will need to make some tough decisions and
real economic changes.

But the federal government must also recognize that the inconsistent — and
incoherent — treatment of Puerto Rico in federal laws and in programs has
substantially contributed to the economic decline and contributed to
increasing numbers of Puerto Ricans relocating to the States.  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, along with my support
for equality for low-income working Puerto Ricans in the refundable
portions of the Child and Earned Income Tax Credits and in programs that
encourage investment in underdeveloped communities.

Underlying all of this is the fundamental question of Puerto Rico’s
ultimate future. That question needs to be resolved in accordance with the
will of the people of Puerto Rico. At the same time, the President and the
Congress should act to treat Puerto Ricans equally in federal programs and
provide Puerto Rico the other tools it needs to stabilize its economy and
get on a path towards prosperity.

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