Inefficient government Economy of Puerto Rico

the same occurs in primary education , secondary education: puerto rico spends $4 billion per year in public education system though 40% of students enter tenth grade in public schools in puerto rico drop out , never finish secondary education. in addition, ninety-five percent (95%) of public school students in puerto rico graduate @ sub-basic level while sixty percent (60%) not graduate. furthermore, according department of education of puerto rico, thirty-nine percent (39%) of public school students perform @ basic level (average performance) in spanish in puerto rican tests of academic achievement. likewise, 36% perform @ basic level in mathematics while 35% perform @ basic level in english , 43% @ basic level in science in relevant tests. overall, 1,321 out of 1,466 public schools in puerto rico (about 90%) not comply academic progress requirements established no child left behind act.

the local government has proven highly inefficient in terms of management , planning; newspapers, such el vocero, stating main problem inefficiency rather lack of funds. example, department of treasury of puerto rico incapable of collecting 44% of puerto rico sales , use tax (or $900 million usd), did not match taxpayers reported department income reported taxpayer s employer through form w-2 s, , did not collect payments owned department taxpayers submitted tax returns without corresponding payments. treasury department tends publish comprehensive annual financial report (cafr) late, 15 months after fiscal year ends, while government whole fails comply continuing disclosure obligations on timely basis. furthermore, government s accounting, payroll , fiscal oversight information systems , processes have deficiencies affect ability forecast expenditures.

similarly, salaries government employees tend quite disparate when compared private sector , other positions within government itself. example, public teacher s base salary starts @ $24,000 while legislative advisor starts @ $74,000. government has been unable set system based on meritocracy, many employees, particularly executives , administrators, lacking competencies required perform jobs.

there similar situation @ municipal level 36 out of 78 municipalities experiencing budget deficit, putting 46% of municipalities in financial stress. central government, municipalities issue debt through puerto rico municipal financing agency stabilize finances rather make adjustments. in total, combined debt carried municipalities of puerto rico account $3.8 billion usd or 5.5% of puerto rico s outstanding debt.

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