Puerto Rico Gov. Alejandro García Padilla announced the commonwealth will prepare a plebiscite on its status, though the actual vote may not happen until mid-2016 or later.
In the current federal budget passed by Congress and signed by the president there is $2.5 million for Puerto Rico to hold a plebiscite. The money is not restricted to the current federal fiscal year but will be available until Puerto Rico uses it.
The ballot may offer choices between Puerto Rico becoming a state, remaining a commonwealth, becoming an independent nation, or perhaps becoming a freely-associated entity with the United States, a source close to the governor said.
On Wednesday García Padilla explained the steps to be taken to develop the ballot question and do voter education before the vote.
The island's election committee will develop the choices and the wording for the ballot. Commonwealth political parties have representatives on the committee. The parties will contribute their input, the governor's source said.
The United States Department of Justice will supervise the creation of the ballot and will have veto power, the source said.
If Puerto Rico became a state, it would lose its current ability to sell bonds that are exempt from state income taxes in every state.. If Puerto Rico bonds lost their tax-exemption, this would reduce the number of people interested in buying the bonds and force Puerto Rico to offer higher interest rates.
Statehood would also have various impacts on Puerto Rico's economy.
García Padilla and his party, the Popular Democratic Party, support Puerto Rico remaining a commonwealth.
At Wednesday's press conference García Padilla said he wanted changes in the current status so that Puerto Rico would have an improved commonwealth status, the governor's source said. The changes could improve the commonwealth's economy, he said. He did not specify what changes he was seeking.
Along with plebiscite expenses, the federal money will be used to educate voters about the options. Again, the Department of Justice will oversee the education process.
García Padilla said the plebiscite will take place before his four-year term ends at the start of 2017. The governor's source said she expected the plebiscite will take place by mid-2016.
Puerto Rico has had several plebiscites on its status in the last few decades, the most recent less than two years ago.
However, the federal government's decision to allot money for a plebiscite is the first time this has happened since 1952, García Padilla said Wednesday. It shows Congress' commitment to the plebiscite, he said.
The November 2012 plebiscite had two questions.
In the first question 54% voted against continuing the current commonwealth status. In the second question that asked what they thought should replace the current status, 61% voted in favor of becoming a state.
However, some observers have said the wording of the ballot was unfair to the commonwealth option. They have also pointed out that many voters chose not to vote on the second question and may be presumed to have supported the current status.
