1 00:00:01,833 --> 00:00:02,866 >> Reporter: ALONG THE STREETS 2 00:00:02,866 --> 00:00:04,900 OF SAN JUAN, PUERTO RICO, 3 00:00:04,900 --> 00:00:06,766 GRAFFITI READING "NO MORE ABUSE" 4 00:00:06,766 --> 00:00:08,733 AND "FASCISM IN PUERTO RICO" ARE 5 00:00:08,733 --> 00:00:10,700 A WINDOW INTO THE UNREST SPARKED 6 00:00:10,700 --> 00:00:12,133 BY THE LARGEST FINANCIAL CRISIS 7 00:00:12,133 --> 00:00:15,966 IN THE ISLAND'S HISTORY. 8 00:00:15,966 --> 00:00:17,900 SINCE JANUARY, THOUSANDS HAVE 9 00:00:17,900 --> 00:00:20,133 PROTESTED AUSTERITY MEASURES AND 10 00:00:20,133 --> 00:00:22,033 CUTS TO PUBLIC SERVICES IMPOSED 11 00:00:22,033 --> 00:00:24,400 ON THIS U.S. TERRITORY THAT'S 12 00:00:24,400 --> 00:00:25,033 HOME TO 3.4 MILLION U.S. 13 00:00:25,033 --> 00:00:27,800 CITIZENS. 14 00:00:27,800 --> 00:00:29,100 BUT PUERTO RICO CURRENTLY OWES 15 00:00:29,100 --> 00:00:30,100 CREDITORS A MASSIVE $72-BILLION 16 00:00:30,100 --> 00:00:33,166 DOLLARS. 17 00:00:33,166 --> 00:00:34,966 LAST YEAR, FOLLOWING A SERIES OF 18 00:00:34,966 --> 00:00:36,966 DEFAULTS ON DEBT PAYMENTS, 19 00:00:36,966 --> 00:00:38,533 CONGRESS PASSED, AND PRESIDENT 20 00:00:38,533 --> 00:00:39,866 OBAMA SIGNED, THE PUERTO RICO 21 00:00:39,866 --> 00:00:41,233 OVERSIGHT MANAGEMENT AND 22 00:00:41,233 --> 00:00:42,933 ECONOMIC STABILITY ACT, OR 23 00:00:42,933 --> 00:00:44,200 "PROMESA," WHICH MEANS "PROMISE" 24 00:00:44,200 --> 00:00:47,133 IN SPANISH. 25 00:00:47,133 --> 00:00:48,400 THE LAW GAVE A FINANCIAL 26 00:00:48,400 --> 00:00:49,866 OVERSIGHT BOARD VETO POWER OVER 27 00:00:49,866 --> 00:00:51,500 PUERTO RICO'S BUDGET AND 28 00:00:51,500 --> 00:00:53,033 PROVIDED A PROCESS TO 29 00:00:53,033 --> 00:00:54,466 RESTRUCTURE THE DEBT. 30 00:00:54,466 --> 00:00:55,533 DID YOU REALIZE WHAT YOU WERE 31 00:00:55,533 --> 00:00:58,033 GETTING YOURSELF INTO? 32 00:00:58,033 --> 00:00:59,033 >> I DID NOT. 33 00:00:59,033 --> 00:01:00,300 >> Reporter: JOSE CARRION, WHO 34 00:01:00,300 --> 00:01:02,000 RUNS A LARGE INSURANCE BROKERAGE 35 00:01:02,000 --> 00:01:03,266 IN SAN JUAN, CHAIRS THE 36 00:01:03,266 --> 00:01:05,633 APPOINTED SEVEN MEMBER BOARD. 37 00:01:05,633 --> 00:01:06,966 >> THE BUDGET WAS UNBALANCED BY 38 00:01:06,966 --> 00:01:08,600 AROUND $3-BILLION DOLLARS. 39 00:01:08,600 --> 00:01:10,733 SO WE HAD TO BEGIN GETTING OUR 40 00:01:10,733 --> 00:01:12,600 FISCAL AFFAIRS IN ORDER, AND 41 00:01:12,600 --> 00:01:14,000 THAT ENTAILED DIFFICULT 42 00:01:14,000 --> 00:01:15,033 DECISIONS AS TO, YOU KNOW, MAJOR 43 00:01:15,033 --> 00:01:16,766 SPENDING. 44 00:01:16,766 --> 00:01:18,100 >> Reporter: THOSE DIFFICULT 45 00:01:18,100 --> 00:01:19,466 DECISIONS INCLUDED CUTS TO 46 00:01:19,466 --> 00:01:20,800 PENSION PAYMENTS FOR RETIRED 47 00:01:20,800 --> 00:01:22,433 GOVERNMENT WORKERS, REDUCING 48 00:01:22,433 --> 00:01:24,400 SPENDING ON HEALTHCARE, CLOSING 49 00:01:24,400 --> 00:01:26,766 179 PUBLIC SCHOOLS AND REDUCING 50 00:01:26,766 --> 00:01:29,466 THE GOVERNMENT WORKFORCE. 51 00:01:29,466 --> 00:01:31,433 SINCE 2013, NEARLY 30,000 52 00:01:31,433 --> 00:01:32,200 GOVERNMENT WORKERS HAVE LOST 53 00:01:32,200 --> 00:01:34,666 THEIR JOBS. 54 00:01:34,666 --> 00:01:36,166 ROXANA PEREZ HAD WORKED AS AN 55 00:01:36,166 --> 00:01:37,700 ADMINISTRATIVE ASSISTANT FOR THE 56 00:01:37,700 --> 00:01:38,466 POLICE DEPARTMENT IN CAROLINA, A 57 00:01:38,466 --> 00:01:40,833 TOWN OUTSIDE OF SAN JUAN. 58 00:01:40,833 --> 00:01:41,866 >> ( translated ): I LOVE 59 00:01:41,866 --> 00:01:43,200 SERVING MY COUNTRY. 60 00:01:43,200 --> 00:01:44,300 >> Reporter: SHE'S NOW LOOKING 61 00:01:44,300 --> 00:01:45,500 FOR A NEW JOB, BUT IT'S NOT 62 00:01:45,500 --> 00:01:47,633 EASY. 63 00:01:47,633 --> 00:01:49,133 THE UNEMPLOYMENT RATE IN PUERTO 64 00:01:49,133 --> 00:01:50,766 RICO IS 11%, TWO-AND-A-HALF 65 00:01:50,766 --> 00:01:52,700 TIMES THE U.S. RATE. 66 00:01:52,700 --> 00:01:54,400 I ASKED WHETHER SHE WAS WORRIED 67 00:01:54,400 --> 00:01:55,700 THE POSITION COULD BE CUT, GIVEN 68 00:01:55,700 --> 00:01:59,833 THE DEBT CRISIS. 69 00:01:59,833 --> 00:02:00,900 >> ( translated ): I HAD FAITH 70 00:02:00,900 --> 00:02:02,100 THAT MAYBE THERE WOULD BE AN 71 00:02:02,100 --> 00:02:03,900 OPPORTUNITY TO CONTINUE. 72 00:02:03,900 --> 00:02:05,000 THERE IS A REAL NEED FOR CIVIL 73 00:02:05,000 --> 00:02:06,266 EMPLOYEES HERE AT THE PUERTO 74 00:02:06,266 --> 00:02:08,966 RICAN POLICE, BELIEVE ME. 75 00:02:08,966 --> 00:02:10,000 >> Reporter: THIS SPRING, 76 00:02:10,000 --> 00:02:11,466 STUDENTS AND FACULTY PROTESTED A 77 00:02:11,466 --> 00:02:13,466 PROPOSED $450-MILLION DOLLAR 78 00:02:13,466 --> 00:02:15,100 BUDGET CUT TO THE UNIVERSITY 79 00:02:15,100 --> 00:02:18,033 SYSTEM OVER THE NEXT FOUR YEARS. 80 00:02:18,033 --> 00:02:19,400 ARCHITECTURE STUDENT MINETTE 81 00:02:19,400 --> 00:02:20,700 BONILLA WAS PART OF A DELEGATION 82 00:02:20,700 --> 00:02:22,000 THAT MET WITH THE FISCAL 83 00:02:22,000 --> 00:02:24,766 OVERSIGHT BOARD. 84 00:02:24,766 --> 00:02:25,833 >> WE ASKED THEM POINT BLANK, 85 00:02:25,833 --> 00:02:26,866 "DO YOU KNOW WHAT THE 86 00:02:26,866 --> 00:02:27,633 CONSEQUENCES WILL BE OF THOSE 87 00:02:27,633 --> 00:02:28,500 CUTS? DO YOU KNOW WHAT THE 88 00:02:28,500 --> 00:02:29,500 CONSEQUENCES WILL BE FOR 89 00:02:29,500 --> 00:02:30,266 STUDENTS AND THEIR ACCESSIBILITY 90 00:02:30,266 --> 00:02:31,533 TO EDUCATION?" 91 00:02:31,533 --> 00:02:32,833 "WE HAVEN'T DONE THOSE STUDIES." 92 00:02:32,833 --> 00:02:34,000 SO THEY'RE JUST CUTTING OUT OF 93 00:02:34,000 --> 00:02:35,433 SHEER NUMBERS WITHOUT KNOWING 94 00:02:35,433 --> 00:02:36,700 ANY IMPLICATIONS FOR THE PEOPLE 95 00:02:36,700 --> 00:02:38,433 THAT ARE SUFFERING THOSE CUTS. 96 00:02:38,433 --> 00:02:39,533 >> Reporter: MORE BROADLY, 97 00:02:39,533 --> 00:02:41,533 STUDENTS ALSO WANT A THOROUGH 98 00:02:41,533 --> 00:02:43,000 AUDIT OF THE ISLAND'S PUBLIC 99 00:02:43,000 --> 00:02:44,433 DEBT BY AN INDEPENDENT BODY. 100 00:02:44,433 --> 00:02:46,033 BUT ABOVE ALL, STUDENTS LIKE 101 00:02:46,033 --> 00:02:47,633 MARIO GONZALEZ NEVARES ARE 102 00:02:47,633 --> 00:02:49,266 CRITICAL OF THE PROMESA LAW, 103 00:02:49,266 --> 00:02:50,500 WHICH CREATED THE BOARD IN THE 104 00:02:50,500 --> 00:02:53,266 FIRST PLACE. 105 00:02:53,266 --> 00:02:54,700 >> PROMESA IS THE EXAMPLE OF 106 00:02:54,700 --> 00:02:56,733 COLONIALISM IN THE 21ST CENTURY. 107 00:02:56,733 --> 00:02:59,600 THIS LAW WAS CREATED 108 00:02:59,600 --> 00:03:01,633 UNILATERALLY BY THE U.S. 109 00:03:01,633 --> 00:03:03,000 CONGRESS, AND IT WAS IMPOSED 110 00:03:03,000 --> 00:03:05,766 OVER PUERTO RICO. AND IT'S ONLY, 111 00:03:05,766 --> 00:03:07,500 ONLY REASON TO EXIST IS TO MAKE 112 00:03:07,500 --> 00:03:09,466 SURE THE BONDHOLDERS ARE PAID. 113 00:03:09,466 --> 00:03:11,100 >> Reporter: PUERTO RICO'S $72- 114 00:03:11,100 --> 00:03:12,733 BILLION DOLLAR DEBT IS OWED TO 115 00:03:12,733 --> 00:03:14,533 BONDHOLDERS, OR CREDITORS, WHO 116 00:03:14,533 --> 00:03:16,033 BOUGHT BONDS THAT FINANCED THE 117 00:03:16,033 --> 00:03:17,733 ISLAND'S GOVERNMENT. 118 00:03:17,733 --> 00:03:19,266 THAT INCLUDES LARGE INVESTORS 119 00:03:19,266 --> 00:03:20,566 LIKE MUTUAL FUNDS AND HEDGE 120 00:03:20,566 --> 00:03:22,133 FUNDS ON THE U.S. MAINLAND, AS 121 00:03:22,133 --> 00:03:24,633 WELL AS LOCAL PUERTO RICANS. 122 00:03:24,633 --> 00:03:26,300 THERE ARE THOSE ON THE ISLAND 123 00:03:26,300 --> 00:03:27,733 WHO BELIEVE THAT THE BOARD IS 124 00:03:27,733 --> 00:03:29,266 MORE CLOSELY ALIGNED TO THE 125 00:03:29,266 --> 00:03:30,300 NEEDS OF THE CREDITORS, HOW DO 126 00:03:30,300 --> 00:03:32,766 YOU RESPOND TO THOSE CRITICISMS? 127 00:03:32,766 --> 00:03:34,700 >> I DON'T CONSIDER MYSELF 128 00:03:34,700 --> 00:03:36,433 BEHOLDEN TO ANY PARTICULAR 129 00:03:36,433 --> 00:03:39,133 BONDHOLDER CLASS. 130 00:03:39,133 --> 00:03:41,500 WE'RE TRYING TO DO THE BEST WE 131 00:03:41,500 --> 00:03:43,000 CAN UNDER EXTREMELY DIFFICULT 132 00:03:43,000 --> 00:03:44,566 CIRCUMSTANCES, BUT THE REALITY 133 00:03:44,566 --> 00:03:47,066 IS THAT WE'RE TAKING EVERYTHING 134 00:03:47,066 --> 00:03:48,533 AND EVERYBODY INTO CONSIDERATION 135 00:03:48,533 --> 00:03:49,800 AND TRYING TO BALANCE ALL THOSE 136 00:03:49,800 --> 00:03:51,000 INTERESTS. 137 00:03:51,000 --> 00:03:52,200 >> Reporter: BUT BONDHOLDERS ARE 138 00:03:52,200 --> 00:03:53,133 WORRIED. 139 00:03:53,133 --> 00:03:54,400 RAFAEL ROJO IS A SAN JUAN REAL 140 00:03:54,400 --> 00:03:56,400 ESTATE DEVELOPER AND CHAIRMAN OF 141 00:03:56,400 --> 00:03:58,700 BONISTAS DEL PATIO, A GROUP 142 00:03:58,700 --> 00:04:00,800 REPRESENTING SOME OF THE 60,000 143 00:04:00,800 --> 00:04:02,666 PUERTO RICAN BONDHOLDERS. 144 00:04:02,666 --> 00:04:03,800 HE ESTIMATES THEY'RE OWED $15- 145 00:04:03,800 --> 00:04:06,566 BILLION DOLLARS. 146 00:04:06,566 --> 00:04:08,000 >> BEHIND WALL STREET, THERE'S A 147 00:04:08,000 --> 00:04:11,300 LOT OF INDIVIDUAL PEOPLE WHO 148 00:04:11,300 --> 00:04:12,233 HAVE THEIR SAVINGS IN THESE 149 00:04:12,233 --> 00:04:13,700 INSTRUMENTS. 150 00:04:13,700 --> 00:04:15,000 >> Reporter: ROJO IS ALARMED BY 151 00:04:15,000 --> 00:04:16,400 THE PUERTO RICAN GOVERNMENT'S 152 00:04:16,400 --> 00:04:17,866 PLAN TO PAY BACK LESS THAN A 153 00:04:17,866 --> 00:04:18,866 QUARTER OF THE DEBT IT OWES OVER 154 00:04:18,866 --> 00:04:20,833 THE NEXT DECADE. 155 00:04:20,833 --> 00:04:22,000 >> IT'S QUITE CLEAR, AND IT'S 156 00:04:22,000 --> 00:04:23,966 SCIENTIFICALLY IMPOSSIBLE TO SAY 157 00:04:23,966 --> 00:04:25,766 OTHERWISE, IT IS THE BONDHOLDERS 158 00:04:25,766 --> 00:04:28,033 WHO HAVE BEEN TARGETED AS THE 159 00:04:28,033 --> 00:04:29,166 ONES WHO ARE GOING TO PAY FOR 160 00:04:29,166 --> 00:04:31,500 THE CRISIS. 161 00:04:31,500 --> 00:04:32,733 AND I THINK THAT'S A HUGE 162 00:04:32,733 --> 00:04:33,900 MISTAKE. 163 00:04:33,900 --> 00:04:34,933 >> Reporter: HE'D LIKE TO SEE 164 00:04:34,933 --> 00:04:36,966 THE SIZE OF PUERTO RICO'S 165 00:04:36,966 --> 00:04:38,133 GOVERNMENT SHRUNK EVEN MORE, AND 166 00:04:38,133 --> 00:04:39,766 THE 78 SEPARATE MUNICIPALITIES 167 00:04:39,766 --> 00:04:40,500 ON THE ISLAND CONSOLIDATE THEIR 168 00:04:40,500 --> 00:04:42,533 SERVICES. 169 00:04:42,533 --> 00:04:44,133 THE OVERSIGHT BOARD FORECASTS 170 00:04:44,133 --> 00:04:45,533 THE ISLAND'S ECONOMY WILL 171 00:04:45,533 --> 00:04:47,566 CONTINUE TO SHRINK THROUGH 2021 172 00:04:47,566 --> 00:04:49,933 BEFORE STARTING TO GROW. 173 00:04:49,933 --> 00:04:51,600 YET OUTSIDE ECONOMISTS, SUCH AS 174 00:04:51,600 --> 00:04:53,733 NOBEL LAUREATE JOSEPH STIGLITZ, 175 00:04:53,733 --> 00:04:55,400 WARN THE BOARD'S AUSTERITY 176 00:04:55,400 --> 00:04:56,966 MEASURES WILL ALL BUT GUARANTEE 177 00:04:56,966 --> 00:04:58,133 A SOCIAL AS WELL AS AN ECONOMIC 178 00:04:58,133 --> 00:05:00,466 CATASTROPHE. 179 00:05:00,466 --> 00:05:02,700 ARE THERE EXAMPLES OF ECONOMIES 180 00:05:02,700 --> 00:05:04,200 ELSEWHERE IN THE WORLD THAT HAVE 181 00:05:04,200 --> 00:05:04,900 EVENTUALLY GROWN UNDER 182 00:05:04,900 --> 00:05:07,700 AUSTERITY? 183 00:05:07,700 --> 00:05:08,500 >> PUERTO RICO'S SITUATION IS 184 00:05:08,500 --> 00:05:10,600 VERY SPECIFIC. 185 00:05:10,600 --> 00:05:12,600 IT IS UNLIKE GREECE IN THAT IT 186 00:05:12,600 --> 00:05:15,400 IS NOT A SOVEREIGN NATION. 187 00:05:15,400 --> 00:05:17,200 IF FOLKS HERE DO NOT CARE FOR 188 00:05:17,200 --> 00:05:18,366 WHAT'S GOING ON, THEY WILL MOVE 189 00:05:18,366 --> 00:05:19,933 OFF ISLAND. 190 00:05:19,933 --> 00:05:21,800 COMPARISONS ARE DIFFICULT IN 191 00:05:21,800 --> 00:05:22,733 LIGHT OF PUERTO RICO'S 192 00:05:22,733 --> 00:05:24,400 TERRITORIAL SITUATION. 193 00:05:24,400 --> 00:05:25,266 >> Reporter: PUERTO RICO HAS 194 00:05:25,266 --> 00:05:26,700 BEEN UNDER U.S. CONTROL SINCE 195 00:05:26,700 --> 00:05:28,266 THE END OF THE SPANISH-AMERICAN 196 00:05:28,266 --> 00:05:30,466 WAR IN 1898, AND IN 1947 WAS 197 00:05:30,466 --> 00:05:33,266 GRANTED AN ELECTED GOVERNMENT. 198 00:05:33,266 --> 00:05:35,033 BUT AS AN UNINCORPORATED 199 00:05:35,033 --> 00:05:37,033 TERRITORY, THE U.S. CONGRESS IN 200 00:05:37,033 --> 00:05:38,533 WASHINGTON CAN OVERRIDE THE 201 00:05:38,533 --> 00:05:40,100 ISLAND'S LAWS, AND PUERTO RICANS 202 00:05:40,100 --> 00:05:41,900 CANNOT VOTE FOR PRESIDENT AND 203 00:05:41,900 --> 00:05:42,766 HAVE NO VOTING REPRESENTATION IN 204 00:05:42,766 --> 00:05:44,933 CONGRESS. 205 00:05:44,933 --> 00:05:46,466 THE APPOINTMENT OF A FISCAL 206 00:05:46,466 --> 00:05:48,233 CONTROL BOARD AND THE EFFECT OF 207 00:05:48,233 --> 00:05:50,400 AUSTERITY MEASURES ON THE ISLAND 208 00:05:50,400 --> 00:05:52,066 HAVE RE-IGNITED A DECADES-OLD 209 00:05:52,066 --> 00:05:53,400 DEBATE REGARDING PUERTO RICO'S 210 00:05:53,400 --> 00:05:54,533 RELATIONSHIP TO THE UNITED 211 00:05:54,533 --> 00:05:55,800 STATES. 212 00:05:55,800 --> 00:05:57,433 MANY PEOPLE HERE, INCLUDING THE 213 00:05:57,433 --> 00:05:59,700 GOVERNOR, BELIEVE A SOLUTION TO 214 00:05:59,700 --> 00:06:01,533 THE ECONOMIC CRISIS WILL NEVER 215 00:06:01,533 --> 00:06:03,333 BE FOUND UNLESS THE TERRITORY'S 216 00:06:03,333 --> 00:06:04,800 POLITICAL STATUS IS RESOLVED 217 00:06:04,800 --> 00:06:07,466 ONCE AND FOR ALL. 218 00:06:07,466 --> 00:06:08,766 >> THE VOICE OF THE PUERTO RICAN 219 00:06:08,766 --> 00:06:09,800 PEOPLE WAS LOUD AND CLEAR. 220 00:06:09,800 --> 00:06:11,833 >> Reporter: LAST MONTH, 97% OF 221 00:06:11,833 --> 00:06:13,333 PUERTO RICANS VOTED FOR THE 222 00:06:13,333 --> 00:06:15,200 TERRITORY TO BECOME THE 51ST 223 00:06:15,200 --> 00:06:16,900 U.S. STATE IN A REFERENDUM 224 00:06:16,900 --> 00:06:18,400 ORGANIZED BY THE ISLAND'S PRO- 225 00:06:18,400 --> 00:06:20,733 STATEHOOD GOVERNOR. 226 00:06:20,733 --> 00:06:21,933 YET ONLY 23% OF ELIGIBLE VOTERS 227 00:06:21,933 --> 00:06:24,566 TURNED OUT. 228 00:06:24,566 --> 00:06:26,266 THE VOTE WAS HEAVILY BOYCOTTED 229 00:06:26,266 --> 00:06:28,000 BY THOSE FAVORING INDEPENDENCE 230 00:06:28,000 --> 00:06:29,100 AND THE STATUS QUO OF REMAINING 231 00:06:29,100 --> 00:06:30,933 A COMMONWEALTH. 232 00:06:30,933 --> 00:06:32,666 IT'S UP TO CONGRESS TO RATIFY 233 00:06:32,666 --> 00:06:34,233 STATEHOOD, BUT PREVIOUS 234 00:06:34,233 --> 00:06:36,233 REFERENDA HAVE BEEN IGNORED, AND 235 00:06:36,233 --> 00:06:37,500 THE CURRENT MOVEMENT HAS SCANT 236 00:06:37,500 --> 00:06:39,633 SUPPORT ON CAPITOL HILL. 237 00:06:39,633 --> 00:06:41,266 >> IF WE'RE AMERICAN CITIZENS, 238 00:06:41,266 --> 00:06:42,866 WE SHOULD STRIVE TO HAVE FIRST- 239 00:06:42,866 --> 00:06:46,433 CLASS TREATMENT IN PUERTO RICO. 240 00:06:46,433 --> 00:06:47,500 >> Reporter: FORMER PUERTO RICAN 241 00:06:47,500 --> 00:06:48,866 SECRETARY OF STATE KENNETH 242 00:06:48,866 --> 00:06:50,566 McCLINTOCK IS PRESIDENT OF 243 00:06:50,566 --> 00:06:51,933 EQUALITY FOR PUERTO RICO", A 244 00:06:51,933 --> 00:06:54,066 PRO-STATEHOOD LOBBY GROUP. 245 00:06:54,066 --> 00:06:56,000 >> ONCE WE MOVE TO ORLANDO, OR 246 00:06:56,000 --> 00:06:57,533 NEW YORK, OR TEXAS, OR NORTH 247 00:06:57,533 --> 00:06:58,866 CAROLINA, WE'RE TREATED AS FIRST 248 00:06:58,866 --> 00:07:01,000 CLASS CITIZENS. 249 00:07:01,000 --> 00:07:02,100 WE HAVE THE RIGHT TO VOTE, WE 250 00:07:02,100 --> 00:07:03,300 HAVE THE RIGHT TO CONGRESSIONAL 251 00:07:03,300 --> 00:07:04,466 REPRESENTATION, WE HAVE THE 252 00:07:04,466 --> 00:07:05,233 RIGHT TO PARTICIPATE IN EVERY 253 00:07:05,233 --> 00:07:07,266 FEDERAL PROGRAM. 254 00:07:07,266 --> 00:07:08,466 >> Reporter: McCLINTOCK BELIEVES 255 00:07:08,466 --> 00:07:09,800 PUERTO RICO'S TERRITORY STATUS 256 00:07:09,800 --> 00:07:11,766 LED TO THE CRISIS, IN PART, 257 00:07:11,766 --> 00:07:13,466 BECAUSE PAST GOVERNMENTS WERE 258 00:07:13,466 --> 00:07:15,300 FORCED TO BORROW FOR ESSENTIAL 259 00:07:15,300 --> 00:07:16,100 SERVICES LIKE ROADS AND HEALTH 260 00:07:16,100 --> 00:07:17,700 CARE. 261 00:07:17,700 --> 00:07:18,966 FOR EXAMPLE, PUERTO RICO 262 00:07:18,966 --> 00:07:20,600 RECEIVES MUCH LESS FEDERAL 263 00:07:20,600 --> 00:07:21,500 FUNDING FOR MEDICAID THAN U.S. 264 00:07:21,500 --> 00:07:23,600 STATES DO. 265 00:07:23,600 --> 00:07:25,466 >> THE TRUTH IS THAT THERE WILL 266 00:07:25,466 --> 00:07:27,533 NOT BE A STABLE FISCAL 267 00:07:27,533 --> 00:07:28,966 SITUATION, ECONOMIC SITUATION IN 268 00:07:28,966 --> 00:07:30,566 PUERTO RICO, UNTIL THERE'S 269 00:07:30,566 --> 00:07:32,766 ECONOMIC GROWTH. 270 00:07:32,766 --> 00:07:34,733 AND THERE WILL NOT BE A HEALTHY 271 00:07:34,733 --> 00:07:35,733 ECONOMIC GROWTH RATE UNTIL THERE 272 00:07:35,733 --> 00:07:39,733 IS EQUALITY. 273 00:07:39,733 --> 00:07:41,500 >> I'M ONE OF THE PEOPLE THAT 274 00:07:41,500 --> 00:07:42,966 BELIEVE THAT WE SHOULD 275 00:07:42,966 --> 00:07:44,233 DEFINITELY ATTEND TO THE ISSUE 276 00:07:44,233 --> 00:07:46,333 OF STATUS. 277 00:07:46,333 --> 00:07:47,366 BUT IT'S NOT A MAGIC WAND THAT 278 00:07:47,366 --> 00:07:48,366 WILL RESOLVE ALL OF OUR 279 00:07:48,366 --> 00:07:50,166 PROBLEMS. 280 00:07:50,166 --> 00:07:51,300 >> Reporter: MANUEL NATAL, A 281 00:07:51,300 --> 00:07:52,733 REPRESENTATIVE IN PUERTO RICO'S 282 00:07:52,733 --> 00:07:54,466 OWN LEGISLATURE, FAVORS 283 00:07:54,466 --> 00:07:55,766 REMAINING A COMMONWEALTH WITH 284 00:07:55,766 --> 00:07:58,000 MORE ECONOMIC SOVEREIGNTY. 285 00:07:58,000 --> 00:07:59,833 FOR EXAMPLE, HE'D LIKE CONGRESS 286 00:07:59,833 --> 00:08:01,833 TO REPEAL THE CENTURY-OLD LAW 287 00:08:01,833 --> 00:08:03,633 THAT REQUIRES ALL IMPORTS TO 288 00:08:03,633 --> 00:08:05,333 ARRIVE ON AMERICAN MADE AND 289 00:08:05,333 --> 00:08:07,166 MANNED SHIPS, WHICH MAKES ALL 290 00:08:07,166 --> 00:08:09,633 FOOD AND GOODS MORE EXPENSIVE. 291 00:08:09,633 --> 00:08:11,533 >> THE TOOLS THAT WE HAVE TO 292 00:08:11,533 --> 00:08:13,533 ACHIEVE ECONOMIC DEVELOPMENT IN 293 00:08:13,533 --> 00:08:15,466 PUERTO RICO, ONE CONGRESS MIGHT 294 00:08:15,466 --> 00:08:16,600 GIVE IT TO YOU, ANOTHER CONGRESS 295 00:08:16,600 --> 00:08:18,466 MIGHT TAKE IT AWAY. 296 00:08:18,466 --> 00:08:19,500 >> Reporter: BUT FOR SOME ON THE 297 00:08:19,500 --> 00:08:21,133 ISLAND, THE SOLUTION FOR PUERTO 298 00:08:21,133 --> 00:08:22,466 RICO IS SEPARATING FROM THE U.S. 299 00:08:22,466 --> 00:08:26,033 AND BECOMING A SOVEREIGN NATION. 300 00:08:26,033 --> 00:08:28,666 >> PUERTO RICO IS A LATIN 301 00:08:28,666 --> 00:08:29,833 AMERICAN, CARIBBEAN NATIONALITY 302 00:08:29,833 --> 00:08:31,800 WITH ITS OWN IDENTITY. 303 00:08:31,800 --> 00:08:32,900 >> Reporter: PUERTO RICAN 304 00:08:32,900 --> 00:08:34,100 SENATOR JUAN DELMAU LEADS THE 305 00:08:34,100 --> 00:08:35,133 PUERTO RICAN INDEPENDENCE PARTY, 306 00:08:35,133 --> 00:08:38,566 THE THIRD LARGEST ON THE ISLAND. 307 00:08:38,566 --> 00:08:39,933 >> ( translated ): AN 308 00:08:39,933 --> 00:08:41,700 INDEPENDENT PUERTO RICO WOULD 309 00:08:41,700 --> 00:08:43,000 HAVE POLITICAL AND LEGAL 310 00:08:43,000 --> 00:08:44,500 AUTHORITY TO JOIN THE GLOBAL 311 00:08:44,500 --> 00:08:46,066 COMMUNITY AND OPEN MARKETS WHILE 312 00:08:46,066 --> 00:08:47,566 AT THE SAME TIME MAINTAINING 313 00:08:47,566 --> 00:08:49,000 FRIENDSHIP AND COOPERATION WITH 314 00:08:49,000 --> 00:08:50,466 THE U.S. BUT ON AN EQUAL 315 00:08:50,466 --> 00:08:51,133 FOOTING, NOT IN POLITICAL 316 00:08:51,133 --> 00:08:55,466 SUBORDINATION. 317 00:08:55,466 --> 00:08:56,366 >> Reporter: WHILE CHALLENGES TO 318 00:08:56,366 --> 00:08:57,466 THE STATUS QUO PERSIST, LAST 319 00:08:57,466 --> 00:09:00,333 MONTH, THE FEDERALLY APPOINTED 320 00:09:00,333 --> 00:09:02,366 FINANCIAL OVERSIGHT BOARD 321 00:09:02,366 --> 00:09:03,600 APPROVED DEEP SPENDING CUTS TO 322 00:09:03,600 --> 00:09:05,933 PUERTO RICO'S BUDGET. 323 00:09:05,933 --> 00:09:07,233 >> REGARDLESS OF HOW ANYONE 324 00:09:07,233 --> 00:09:09,166 FEELS ABOUT STATUS IN PUERTO 325 00:09:09,166 --> 00:09:09,933 RICO, YOU NEED A BALANCED 326 00:09:09,933 --> 00:09:10,466 BUDGET. 327 00:09:10,466 --> 00:09:11,366 >> Reporter: THIS GRAFFITI ON 328 00:09:11,366 --> 00:09:12,633 ONE SAN JUAN STREET READS "DOWN 329 00:09:12,633 --> 00:09:15,833 WITH HIS MAJESTY JOSE CARRION" 330 00:09:15,833 --> 00:09:17,566 >> IT MAKES ME SAD, AND YOU 331 00:09:17,566 --> 00:09:20,733 KNOW, I'M NOT A POLITICIAN, SO 332 00:09:20,733 --> 00:09:22,700 I'M LEARNING TO DEAL WITH 333 00:09:22,700 --> 00:09:26,733 CRITICISM OF THAT NATURE. 334 00:09:26,733 --> 00:09:28,633 >> Reporter: YET, CARRION SAYS 335 00:09:28,633 --> 00:09:30,466 HE UNDERSTANDS THE CRITICISM 336 00:09:30,466 --> 00:09:31,600 THAT HIS BOARD IS NOT 337 00:09:31,600 --> 00:09:32,700 ACCOUNTABLE TO THE ISLAND'S 338 00:09:32,700 --> 00:09:33,900 RESIDENTS. 339 00:09:33,900 --> 00:09:35,066 >> THERE'S NO WAY ANYBODY COULD 340 00:09:35,066 --> 00:09:36,500 CONCEIVABLY THINK THAT THIS IS A 341 00:09:36,500 --> 00:09:39,300 DEMOCRATIC PROCESS. 342 00:09:39,300 --> 00:09:40,200 BUT, HOW ABOUT LOOKING AT THE 343 00:09:40,200 --> 00:09:42,366 POSITIVE SIDES. 344 00:09:42,366 --> 00:09:43,633 THE LAW, IT PROVIDES US THE 345 00:09:43,633 --> 00:09:45,933 OPPORTUNITY TO PROCURE A WAY 346 00:09:45,933 --> 00:09:48,033 FORWARD, AND TO RESTRUCTURE, YOU 347 00:09:48,033 --> 00:09:51,000 KNOW, $72-BILLION WORTH OF DEBT. 348 00:09:51,000 --> 00:09:53,133 WE NEED TO TAKE THIS OPPORTUNITY 349 00:09:53,133 --> 00:09:55,300 THAT CONGRESS HAS PROVIDED US 350 00:09:55,300 --> 00:09:58,500 AND MOVE OUR PEOPLE AND OUR 351 00:09:56,966 --> 00:09:58,533 ISLAND FORWARD.