Puerto Rico governor cites 'sharp contrast' with island's overseers(Reuters) - Puerto Rico Governor Ricardo Rossello on Friday criticized a set of recommendations by the federal board in charge of managing the U.S. territory’s finances, signaling a potential power struggle between the government and the board on how to pull the island out of economic crisis. In a letter to the board on Friday, Rossello said that while he supports reducing government spending, he would not focus on layoffs as a primary means of saving money. He also took a more moderate stance on reducing repayments to holders of the island’s $70 billion in debt, saying his administration had a “fundamental willingness to pay based upon available resources.”  The board, in a letter to the governor on Wednesday, said the island may have only $800 million available annually for debt service, just 21 percent of what it owes. The board’s letter had called for Puerto Rico to save more than $4.5 billion a year through a mix of savings and new revenues, including by “right-sizing government” through a 30 percent reduction in payroll and other means.  The board also said it favored extending some key deadlines that could give Rossello’s administration more time to negotiate consensual restructuring deals with creditors. [L1N1F82HL] In addition to its debt from a myriad of public issuers, Puerto Rico is struggling with a 45 percent poverty rate and unemployment that is more than twice the mainland U.S. average.  The bipartisan, seven-member oversight board was created under the federal Puerto Rico rescue law known as PROMESA, passed by the U.S. Congress last year. It is charged with helping the island manage its finances and negotiate restructuring deals with creditors. Rossello’s adversarial tone could score him political points on an island where many locals view the oversight board as an extension of U.S. imperialism. However, his policies and the board’s vision may be more aligned than not. For instance, both stress the need for the island to reduce spending and create new revenue sources. That is a departure from Rossello’s predecessor, former Governor Alejandro Garcia Padilla, who called for dramatic repayment cuts in favor of maintaining government services.  Rossello and the board may clash on healthcare spending, with the board calling for $1 billion a year in savings. Puerto Rico’s Medicare and Medicaid insurance programs are in financial trouble, due in part to federal government reimbursement levels that are disproportionately smaller than what is given to U.S. states.  Rossello said he felt “highly confident” his administration would convince Congress to increase that funding. “There is no single political leader in the world that would want to be responsible for ... endangering the health and wellbeing of 3.5 million of its citizens,” the governor said. The board also called on Puerto Rico to annually save $300 million in higher education spending and $200 million in pension costs. Rossello said he would implement means-testing for tuition rates at the University of Puerto Rico, move pension benefits into private accounts, and implement rules to treat some pension benefits as taxable ordinary income. politicsNews
puerto rico governor cites contrast island oversees reuters puerto rico governor ricardo russell friday criticized set recommendations federal board charge managing territory finances signaling potential power struggle government board pull island economic crisis in letter board friday russell said supports reducing government spending would focus layoffs primary means saving money he also took moderate stance reducing repayment holders island billion debt saying administration fundamental willingness pay based upon available the board letter governor wednesday said island may million available annually debt service percent owes the board letter called puerto rico save billion year mix savings new revenues including government percent reduction payroll means the board also said favored extending key deadlines could give russell administration time negotiate consensual restructuring deals creditors in addition debt myriad public issuers puerto rico struggling percent poverty rate unemployment twice mainland average the bipartisan oversight board created federal puerto rico rescue law known process passed congress last year it charged helping island manage finances negotiate restructuring deals creditors russell adversarial tone could score political points island many locals view oversight board extension imperialism however policies board vision may aligned for instance stress need island reduce spending create new revenue sources that departure russell predecessor former governor alejandro garcia vanilla called dramatic repayment cuts favor maintaining government services russell board may clash healthcare spending board calling billion year savings puerto rico medical medical insurance programs financial trouble due part federal government reimbursement levels disproportionately smaller given states russell said felt highly confident administration would convince congress increase funding there single political leader world would want responsible endangering health wellbeing million citizens governor said the board also called puerto rico annually save million higher education spending million pension costs russell said would implement tuition rates university puerto rico move pension benefits private accounts implement rules treat pension benefits taxable ordinary income politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Puerto Rico governor cites 'sharp contrast' with island's overseers(Reuters) - Puerto Rico Governor Ricardo Rossello on Friday criticized a set of recommendations by the federal board in charge of managing the U.S. territory’s finances, signaling a potential power struggle between the government and the board on how to pull the island out of economic crisis. In a letter to the board on Friday, Rossello said that while he supports reducing government spending, he would not focus on layoffs as a primary means of saving money. He also took a more moderate stance on reducing repayments to holders of the island’s $70 billion in debt, saying his administration had a “fundamental willingness to pay based upon available resources.”  The board, in a letter to the governor on Wednesday, said the island may have only $800 million available annually for debt service, just 21 percent of what it owes. The board’s letter had called for Puerto Rico to save more than $4.5 billion a year through a mix of savings and new revenues, including by “right-sizing government” through a 30 percent reduction in payroll and other means.  The board also said it favored extending some key deadlines that could give Rossello’s administration more time to negotiate consensual restructuring deals with creditors. [L1N1F82HL] In addition to its debt from a myriad of public issuers, Puerto Rico is struggling with a 45 percent poverty rate and unemployment that is more than twice the mainland U.S. average.  The bipartisan, seven-member oversight board was created under the federal Puerto Rico rescue law known as PROMESA, passed by the U.S. Congress last year. It is charged with helping the island manage its finances and negotiate restructuring deals with creditors. Rossello’s adversarial tone could score him political points on an island where many locals view the oversight board as an extension of U.S. imperialism. However, his policies and the board’s vision may be more aligned than not. For instance, both stress the need for the island to reduce spending and create new revenue sources. That is a departure from Rossello’s predecessor, former Governor Alejandro Garcia Padilla, who called for dramatic repayment cuts in favor of maintaining government services.  Rossello and the board may clash on healthcare spending, with the board calling for $1 billion a year in savings. Puerto Rico’s Medicare and Medicaid insurance programs are in financial trouble, due in part to federal government reimbursement levels that are disproportionately smaller than what is given to U.S. states.  Rossello said he felt “highly confident” his administration would convince Congress to increase that funding. “There is no single political leader in the world that would want to be responsible for ... endangering the health and wellbeing of 3.5 million of its citizens,” the governor said. The board also called on Puerto Rico to annually save $300 million in higher education spending and $200 million in pension costs. Rossello said he would implement means-testing for tuition rates at the University of Puerto Rico, move pension benefits into private accounts, and implement rules to treat some pension benefits as taxable ordinary income. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: puerto rico governor cites contrast island oversees reuters puerto rico governor ricardo russell friday criticized set recommendations federal board charge managing territory finances signaling potential power struggle government board pull island economic crisis in letter board friday russell said supports reducing government spending would focus layoffs primary means saving money he also took moderate stance reducing repayment holders island billion debt saying administration fundamental willingness pay based upon available the board letter governor wednesday said island may million available annually debt service percent owes the board letter called puerto rico save billion year mix savings new revenues including government percent reduction payroll means the board also said favored extending key deadlines could give russell administration time negotiate consensual restructuring deals creditors in addition debt myriad public issuers puerto rico struggling percent poverty rate unemployment twice mainland average the bipartisan oversight board created federal puerto rico rescue law known process passed congress last year it charged helping island manage finances negotiate restructuring deals creditors russell adversarial tone could score political points island many locals view oversight board extension imperialism however policies board vision may aligned for instance stress need island reduce spending create new revenue sources that departure russell predecessor former governor alejandro garcia vanilla called dramatic repayment cuts favor maintaining government services russell board may clash healthcare spending board calling billion year savings puerto rico medical medical insurance programs financial trouble due part federal government reimbursement levels disproportionately smaller given states russell said felt highly confident administration would convince congress increase funding there single political leader world would want responsible endangering health wellbeing million citizens governor said the board also called puerto rico annually save million higher education spending million pension costs russell said would implement tuition rates university puerto rico move pension benefits private accounts implement rules treat pension benefits taxable ordinary income politicsnews