Puerto Rico Government Shutdown

So, I'm starting to pack for my trip to Puerto Rico this weekend for the annual Black Gay Men's Mobilization Retreat put on by the Black AIDS Institute when a friend sends me this email with the news that Puerto Rico's government shut down on May 1 due to a budget crisis:

Puerto Rico's government shut down Monday after the U.S. commonwealth ran out of money to pay 100,000 public employees, temporarily throwing them out of work.

About 500,000 students are out of school as the shutdown left 40,000 teachers idle. Forty-three government agencies and all 1,600 public schools on the island were closed.

The closure comes after the legislature and the governor failed to reach a last-minute deal to address the government's $740-million budget shortfall. The legislature and the governor have been unable to agree on a budget since 2004 and debts continue to pile up.

The island has no sales tax. The leader of the Senate offered to implement a 5.9-per cent sales tax to raise money to pay off an emergency $532-million line of credit the government needs to finish the fiscal year.

But the House of Representatives oppose any sales tax above 5.5 per cent.

However, Gov. Anibal Acevedo Vila said both proposals miss the mark, and that a seven per cent tax is needed to pay for an additional $640-million loan. He said the other tax proposals only postpone the crisis until July 1, when the next fiscal year begins.

The governor has said essential services, including police and hospitals, will continue during the shutdown.

Hmmm, this might be an even more relaxing trip than was intended!