Obama Proposes Plebiscite on Puerto Rico's Status

President Obama is proposing that Puerto Rico hold a new plebiscite to determine its political status.

If Puerto Rico's voters were to choose to become a state, the commonwealth would likely lose its ability to sell new bonds that were exempt from the taxes of other states and localities. Alaska and Hawaii lost this ability when they became states in 1959.

As part of his proposed fiscal 2014 budget, Obama proposed the federal government spend $2.5 million for "nonpartisan voter education about, and a plebiscite on, options that would resolve Puerto Rico's future political status." The U.S. federal attorney general would first confirm that the proposed plebiscite ballot was compatible with the U.S. constitution and laws.

In November, Puerto Rico's voters made history when, for the first time, they voted in favor of becoming a state. They were asked two questions. In the first, 54% voted against continuing the island's current self-governing commonwealth status. In a second question concerning what they thought should replace the commonwealth, 61% voted in favor of statehood.

"The president of the United States has heard the call of the government of Puerto Rico and with this action he is encouraging a fair referendum process to further the discussion of this important issue," said Puerto Rico Gov. Alejandro García Padilla, who supports continuing the current commonwealth status.

"Today is an historic day for all of us who have been fighting for equality and justice for Puerto Rico," said Puerto Rico resident commissioner Pedro Pierluisi. "The White House has recognized that, on November 6, 2012, a majority of the U.S. citizens of Puerto Rico withdrew their consent to the current territory status, which deprives them of the most fundamental democratic rights." Pierluisi is Puerto Rico's representative in Congress. He votes in House of Representatives committees but not in House-wide votes.

"The results of Puerto Rico's November status plebiscite indicated a significant trend against the current territorial relationship and towards statehood," said U.S. Sen. Ron Wyden, Democrat and chairman of the Senate Committee on Energy and Natural Resources. "I am pleased that President Obama has requested an appropriation to give the voters of Puerto Rico a chance to affirm those results in a federally-sponsored plebiscite. I look forward to working with the president, my Senate colleagues, and with the Appropriations Committee to enact this request into law and to continuing the process toward resolution of Puerto Rico's future political status."

U.S. Rep. Edward Markey, who is the ranking Democrat on the House Committee on Natural Resources, agreed. "I fully support President Obama's request for a $2.5 million appropriation to conduct a federally-sponsored political status vote in Puerto Rico, which would be the first in the territory's history and which I hope will finally bring resolution to this long-standing issue. The president's request is an appropriate response to the interest that a majority of the U.S. citizens who live in Puerto Rico have expressed about the desirability of changing their island's current political status."

The House Committee on Natural Resources and the Senate Committee on Energy and Natural Resources cover territorial affairs.

Wyden plans to hold a hearing on Puerto Rico's status this spring.

It has not yet been decided when the Puerto Rico plebiscite would be held.

For reprint and licensing requests for this article, click here.
Puerto Rico
MORE FROM BOND BUYER