Statehood for Puerto Rico and the Potential Fiscal Impact of Official Bilingualism for the United...

8/9/2019 Statehood for Puerto Rico and the Potential Fiscal Impact of Official Bilingualism for the United States

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B Don Soifer MARCH 2010

Statehood for Puerto Rico and the Potential Fisc Impact of Official Bilingualism for the United St



2 Lexington institute

By DON SOIFER MARCH 2010

Statehood for Puerto Rico and the Potential Fiscal Impact

of Official Bilingualism for the United States

Executive Summary

R c d v l pm hav adva c d h l k l h d ha v r P r R c may v

a q c f ball a v ha c ld r l h ra f a h d ash ld P r R c b c m h 51 a , a mb r f w h maj r mpl ca f r

b h P r R c a d h u d s a w ld d b addr d, cl d f caa .

P r R c , wh ch r c v d $18 b ll d r c f d ral p d r FY 2008, ha a p p law h a m d a a al c m f $17,741, arly a h rd b l w ha f r h u d s a . Wh l

l b l y f r ma y maj r f d ral c al pr ram h am b h j r d c , h r , l k h Fs amp Pr ram, cl d d ff r l b l y r q r m . th w ld l k ly r l cr a d f d ra

p d r h ld a h d b ach v d, b a lack f c mparabl da a mak c pr j c f rch cha d ff c l .

R c c l la a p l c b w P r R c , wh ch r c z b h e l h a d spa h a ffla a , a d h u d s a , w ld al ra a h f p l cy c c r f r b h j r d c . F

h u d s a , wh ch ha ff c al la a d a c rr ly, m v m ward a Ca ad ay m f ff c al b l al m w ld b c m a p l cy p b l y.

Ca ad a b l al m, wh ch f a r b d v r f off c al La a Ac , acba d a ma y-lay r d fram w rk f law , rad a d r la . Par c larly v r h pa f rd cad , ach l m f h fram w rk ha add d p c f c r q r m a d r p b l . A 2009

dy by h Fra r i c cl d d ha h a al c f h y m f b l al m wa b wC$6 b ll a d C$1.8 b ll 2006, r C$55 p r Ca ad a .

Wha w ld b h p al c a d mpl ca h ld a h d f r P r R c r l abl h a Ca ad a - yl y m f b l al m h u d s a ? thr h a r f

calc la a d ma , h r p r arr v a a pr j c d al c f $25.661 b ll , r $85 p rAm r ca . D a l f ll w.



Lexington institute 3

Introduction

La y ar, h u.s. H f R pr a v ’ na ral R rc C mm pa d h P rR c D m cracy Ac f 2009, p r d by R d C mm r P dr P rl . th b llha a rac d a b par a c al f c p r , r pr d r c fr m ar d h

c ry a d acr h p l cal p c r m, cl d alwar fr m b h d f h p l cp c r m.

th m r c l la v v h cl pr p a f d rally- a c d, w - p pr c f r hd rm a f P r R c ’ p l cal a ha d ff r b a ally fr m pa ball m a r .i fac , h q pr c pr cr b d d r h w pla ha ha r d r d h pr p alc r v r al.

th q f p al a h d a f r P r R c ha b c d r d, a d r j c d bya maj r y f v r , hr m c 1967, d r d ff r ball w rd . B h pl b cm cha m c rr ly b pr p d, w h d al pha f d f d v r p , br adlyc d r d b a c ar wh ch a h d may b m r l k ly w appr val ha pr vpr p al .

th al v w ld b a w -ch c r f r d m wh h r, “P r R c h ld c hav pr f rm f v r m ,” r f “P r R c h ld hav a d ff r p l cal a .” V r

P r R c w ld h l c h r pr f r c acc rda c w h h w ch c .

Appr val f h f r p by a maj r y f v r w ld a h r z h v r m f P r R c c d c a c d pl b c . th b q ball w ld cl d h f ll w hr p ly

(1) i d p d c : P r R c w ld b c m f lly d p d fr m h u d s a ;(2) s v r y A c a w h h u d s a : P r R c a d h u d s a h l

f rm a p l cal a c a b w v r a ha w ll b bj c h t rrCla f h u d s a C ; a d

(3) s a h d: P r R c h ld b adm d a a s a f h u .

A c d charac r c d f h v r f h Ac wh ch pa d 2009 c c r l b l y A y pl b c h ld d r h Ac w ld p rm w yp f l bl v r :

(1) All l bl v r d r h l c ral law ff c P r R c a h m h pl b ch ld, a d

(2) All u d s a c z b r P r R c wh c mply w h all r q r m f h P rR c s a el c C mm c p r d cy r q r m . A y l bl v r ac rr r d f P r R c a h m f h v w ld b l d v by abball .

Note: Currency indicated in United States dollars except where noted. C$=Canadian Dollars.




th pr p al d r c hr h hly al c rc m a c f r h v :

1. th la r pr v all w h l bl u.s. v r ca h r v m l a ly ha f r d c a d h P r R c pl b c by ab v .

2. Add ally, f h al pl b c d ca a maj r y f pp r f r c P r pr f rm f p l cal a , h pla p rm h v r m f P r R c c d c

al ball a rval f v ry h y ar .

3. A add al r q r m a C r al ma da ha all ball cl d h f ll cpr d b h e l h a d spa h.1

POTENTIAL IMPACT OF STATEHOOD

Background – Current Participation in Federal Social Spending and Taxation Programs

th C mm w al h f P r R c cl d f r pr c pal la d h gr a r A ll , w h ac mb d 3,421 q ar m l a d a p p la f m f r m ll p pl . i c my, w h $68b ll r d m c pr d c (gDP), f h m dy am c h Car bb a , lar ly dr v by ar la v ly d v r d r al c r.2

P r R c a lf- v r , f cally a m C mm w al h f h u d s a , d r hrm f c . i r c v d $18 b ll al d r c p d r a d bl a d r

y ar (FY) 2008, r m r ha 15 a , acc rd h C l da d F d ral F d R p r .3

th v r m f P r R c ’ FY 2009-2010 b d had a $3.2 b ll r c ral d f c f r 2009, a dpr j c d a $500 m ll r c ral d f c f r 2010.4

th u d s a C r pa d P bl c Law 600 1950, a h r z h ad p f ha c

a d abl h h fram w rk f r h c rr p l cal, c m c a d f cal r la h p b w hu.s. a d P r R c .

P r R c ra d ally a hybr d d m c-f r r a m by h u d s a f r a ap rp .5 Ma y f h p l c d f h r la h p ar d d c v z v ma d pr va - c r h r P r R c . s ch c v hav f b abl h d w h h ap rp f ff h “add al c mp d v P r R c b ca f a u.s. p .”6 A g v r m Acc ab l y off c (gAo) dy f d ha u.s.- w d bacc d f r 71 p rc f h val add d a d 54 p rc f ma fac r c r mpl ym 2002. 7

R d pay l cal, b f d ral, c m a ac v y P r R c , b ar r p bl f rf d ral c m a all c m fr m rc d P r R c . R d f h u.s. m payf d ral c m a c m fr m P r R c . g d mp r d P r R c fr m h u.s. ar

mp fr m f d ral c a .

empl y a d mpl y r P r R c c r b u.s. f d ral payr ll w hh ld a f rM d car a d s c al s c r y. C mpa r a z d P r R c ar r a d a f r c mpa fu.s. a p rp .8

R d f P r R c c rr ly har ma y, b all, f h r h j y d by u.s. c z .th y d v u.s. a al l c , a d h r l c d r pr a v d hav vr h h u.s. C r . R d f P r R c r c v pp r fr m f d ral c al pr ram ,

mmar z d h char b l w (tabl 1).9 i ral, d ca a d f d pr ram ar appl d ham b h plac . t rm f h r c rr a r d r f c cl d a al c r y, c rr




a d r a c mm rc h am a h f r h r d m c j r d c f h f d ral v r m f h u d s a .P r R c had a p p la f 3.8 m ll a m a r d by h2000 C . i m d a a , a 32.1, hr y ar l w r ha

ha f h u d s a . P r R ca ar c z f h u ds a , a d may rav l h r a d r r a y m .

Acc rd h m r c ava labl da a, P r R c ’ m d ah h ld c m wa $17,741, w ll b l w h $50,740 m d al v l f r h u d s a . By way f c mpar , P r R c ’m d a c m ab half ha f h p p la f n wark,n w J r y r s . L , M r , a d ab w - h rd h m d a

f h l w - c m lar c h u d s a , D r a dCl v la d.10 th r pr a 2.5 p rc d cr a fr m 2006 f rP r R c fla -adj d d llar , wh l m d a c m

h u d s a r w by 1.9 p rc v r ha am p r d.11

Acc rd r arch by h gAo, P r R c ’ p r cap a a b rd mp d by all l v l f v r m (f d ral, C mm w al h a d l cal) wa $3,071 2002, w ll b l w h $9,426 p r

cap a bl a h u d s a . n h l , h c mpr d 28 p rc f p r al c m , ac mparabl ra h 30 p rc pa d h u d s a .12

i 1999, 37.1 p rc f P r R ca h h ld had c m b l w $10,000, c mpar d w h 9.5p rc f u.s. h h ld .13 P r R c ’ p v r y ra , a 45.5 p rc 2007, m r ha hr

m h ra f r h u d s a , a d m r ha w c ha f M pp a d L a a, h w h h w h h ra .14

th mpl ym ra ( a ally-adj d) oc b r, 2006, wa 15.6 p rc , w ll ab v h u.s.ra f 10.2 p rc a d h h r ha h h h a al (M ch a ’ a 15.1 p rc ).15 P r R c ’

mpl ym ha r w v r h pa 25 y ar , v h h ma fac r j b hav d cl d, b mpl ym al hav r ma d w ll ab v h f h u d s a .16 th m m m wa law

f h u.s. apply P r R c .

C r b P r R c ’ h h mpl ym ra ar ff c f h a r y m a r ag v r r L F r ’ adm ra , cl d h rm a f f h a d f p bl c j b , f c pr va - c r j b cr a .17

A h d f 2009 f cal y ar (wh ch d J 30), p d a $52.9 b ll p bl c d b .18 M dy’a d s a dard a d P r’ ra h c mm w al h v r m p ab v - v m rad .

e c a c ll c d fr m m pr d c d P r R c a d h u d s a ar rally pa h P r R c tr a ry. C rr ly, r P r R c a d h u.s. V r i la d ar h a

d ba v r h c m f a “r m war” c c r h r a m f r m b d a d a c vd d pr d c add al r v f r h r a r f h w rr r . W h h ff c

f ch pr v pr d c c v f r ach j r d c b p r pr d c , h z aappr pr a f h b d l k ly r ma d r v r d ba .19 B ca h b d

v lv p c al r d r c ly r la d a h d a , h q w ll b cd p d p .

Puerto Rico’s Participation in Federal Social ProgramsR d f P r R c par c pa ma y f d ral c al pr ram h am a u d sc z , a h abl b l w d m ra . th cl d m maj r f d ral d ca a d hf d r am . F d ral p d cap M d ca d a d h s a Ch ldr ’ H al h i ra c Pr ramar rally ff by r d c d m m m f d r q r m , wh l a gAo a aly d cr b dd ff r c M d car l b l y a d b f a “ mall.”20




Table 1. Summary of Selected Social Programs in Puerto RicoCompared to Those in the United States

Same in Puerto Rico and U.S.

i d v d al w h D ab l ed ca Ac (iDeA) Par B

el m ary a d s c dary ed ca Ac , t l i

Ch ld a d Ad l F d Car Pr ram

na al sch l L ch Pr ram

sp c al s ppl m al n r f r W m , i fa a d Ch ldr (WiC)

HoPe Vi

H Ch c V ch r

C mm y D v l pm Bl ck gra

Pr j c -Ba d s c 8P bl c H

s c 203b s l Fam ly M r a i ra c Pr ram

Operates the same or comparable,but financing differs

Comparison – Same Unless Noted

F d s amp r n r Pr ram el b l y r l d ff r.

M d car small d ff r c l b l y a d b f .

M d ca d F d ral p d l m d by a ry cap ,ff by r d c d f d r q r m

C r f r M d car a d M d ca d s rv c .

s a Ch ldr ’ H al h i ra c Pr ram(sCHiP)

F d ral p d l m d by a ry cap ,ff by C r al m m m f d ral

ma ch c r b .

A d h A d, Bl d r D abl d (AABD) P r R c p ra AABD, s ppl m al s c r y i c m pr ram.

t mp rary A a c f r n dy Fam l(tAnF)

n all f d ava labl P r R c .

Ch ld Car a d D v l pm F d (CCDF) n all f d ava labl P r R c .

F r Car a d Ad p A a c n all f d ava labl P r R c .

HoMe i v m Par r h p P r R c bj c f d cap

Some components comparable, some not

H al h gra M h d d rm f d am d ff rby ra .

Source: GAO 06-541, May 2006.




A f F br ary 1, 2010, P r R c ha b award d $2.3 b ll f d d r h Am r ca R c v ry a d R v m Ac

(ARRA) f 2009, f wh ch ha r c v d $448 m ll . R hlyhalf f h f d hr h h f d ral D par m f ed cab d .21 s m ma plac h al f ARRA f d P rR c ca p c r c v a h h a $6 b ll.22 A h f dl v l f r P r R c ar d rm d h ba f P rR c ’ p l cal a , h y w ll b c d r d a a h d f r h a aly .

th f d ral n r A a c f r P r R c pr ram r c v d$1.76 b ll 2009.23 o ly v ry l w c m h h ld ar

l bl f r nAP ($8,004 f r a fam ly f f r.) F d q al y f rh pr ram b w P r R c a d h u d s a ha b

ra d a a p l cal by r a za cl d h na alg v r r A c a , a d w ld v ry l k ly b addr d h ld P r R c r c v a h d

a . B acc rd h Wh H off c f Ma a m a d B d , “ h f h r amal r P r R c k w b ca h maj r rv y d m a r h c d

h u d s a ar c d c d h C mm w al h.” A lack f ch c mparabl da a v r lyc mpl ca f cal pr j c h p al r l f a h d. B r m ly l k ly haf d ral f d l v l w ld cr a f ca ly. th am pr c pl appl m h r pr raml d tabl 1.

P r R c c a D r c h f d ral j d c ary w h w u.s. D r c C r . D cca b app al d h u.s. C r f App al f r h F r C rc , a d l ma ly h u.s. s pr mC r .24

Tax and Spending Implications for Puerto Rico Statehood F d ral a p l cy ha had maj r mpl ca f r h c my f P r R c , wh ch ha d r

f ca cha c a 1976 v ca d c m J d Wa k d cr b h la dmpply- d c m c r a ,The Way the World Works , a a a hav a h p f h Laff r

C rv .25 th p a cr d a d h c m c ac v y cr d mpl m d c v zv m P r R c p r d f r a abl y ar b af r D c mb r 31, 2005.26

Wa k a r b d p l c l d by P r R c g v r r L M z Mar , wh rv d fr m 1951965, “ h hr r a c m c barr r P r R ca a h d: h m m m wa d ff r

h -y ar a mp f r c rp ra rpr , a d h pr r v a r c r .”27

o maj r d v l pm rm f c m c mpac ha b h pha f “936 Pr v ”f h f d ral ta R f rm Ac f 1976, abl h c rp ra f d ral a cr d c m ar d

P r R c , d 2005.

M f h a cr d w r ak by c mpa h pharmac cal d ry, a d w ll v r half val add d d r h 1990 wa v lv d ma fac r .28 W h h r p al f h a cr d , ma y

f h lar c rp ra mpl y r r r a z d h r ac v a d h ld .

i c ra , u.s. c mpa hav pr v d d v ry f w j b – l ha 25 p rc – rv c , wh l ala d r a l c r .29

R arch r hav d ha m a r c m c pr r P r R c rally d ff c l ,f r a var y f r a . Acc rd pr m a aly , h 936 Pr v “pr v d d a r

c v f r u.s. f rm v r a pr f ar d P r R c .”30 th z f P r R c ’ ca h-ba d, d r r d c my, al a fac r d fy m a r m .

th gAo b rv d ha c r a v r m a a c pr ram c rr ly d rway P r R c ,am ly h n r A a c Pr ram (P r R c ’ f d amp pr ram), a d d ab l y ra c




“ca d c ra w rk, wh l h u.s. Pr ram ha c ra lab r f rc par c pa – h ear di c m ta Cr d – a par f h a y m P r R c .”31

A 2006 a aly by h J C mm ta a f h u.s. C r a alyz d h a a d p dmpl ca f h hr p bl c m f h pr p d pl b c . th C mm c cl d d:

Independence: u.s. p d , ra f r a d l m pr ram w ld rally d, w hm l k ly ra f r h wh hav pa d h s c al s c r y a d M d car y m .

ra f r la p bl d al c z h p w ld r q r d l b ra , h rw dc z c ld b bj c a a by b h P r R c a d h u d s a . C rp raw ld rally c b a d d r P r R ca law. e c a w ld l r b“c v r d v r” P r R c .

Sovereignt : th r r a b l v ha a law w ld rally cha d r hp . u.s. p d pr ram w ld l k ly b c d r d by lawmak r , b p c f c

cha app ar bv .

Statehood: P r R c ’ v r m a d r d w ld b f by acc h f ll raf f d ral v r m rv c a d pp r , cl d pr ram f r wh ch h y d c rr ly

hav f ll l b l y, ch a F d s amp , M d ca d, t mp rary A a c f r n dy Fam l ,a d s ppl m al s c r y i c m . gra P r R c w ld rally b mad by d r cC r al appr pr a . Ma y b rpr w ld hav r a r a l ab l u d s a a law , wh ch c rp ra r a z d P r R c a d f r c rp ra

a d a rad r b P r R c w ld b c m f lly bj c . th r w ld b alar cr a h mb r f P r R c r d r q r d f l f d ral a r r hu.s. Ma y w ld b l bl f r h ar d c m r ch ld a cr d a d h r b f f rl w- c m f l r . e c a w ld apply q ally a w h h r u.s. r d . g rally,

ra p l c w ld d b ac d, a d p bl ha P r R c w ld adja p l c a a r l .32

th C mm d cl d ff r a r v ma f r h c mb d a a d p d ff c fP r R c a h d. i d ha h m d a h h ld c m P r R c (c rr ly $17,741)

far b l w ha f h u d s a . i ma d h mpac f f ll l b l y f h ar d

a cr d w ld c h f d ral v r m $2.7 b ll f r ach f h f r 5 y ar , a d $5.2 b lla ally h r af r.33

A 1996 dy by h gAo c cl d d ha h mpac f P r R c a h d f d ral d v d alc m a w ld b appr ma ly z r .34 Var h r r c a aly by h C r al

R arch s rv c , gAo, a d h r hav pp r d h a r .

W h r ard h p al c rp ra a mpac f a h d f r P r R c , b ca mpl caw ld d p d var h r fac r , cl d d c mad by c rp ra , h mpac f

ch cha fall v r br ad a ra b a f l a d r l abl d ca r f r h p rp f hr p r .

COSTS OF BILINGUALISM Research on Costs of Current Bilingualism Initiativess v ral f rma v m d l f r ma h c a c a d w h h f v r m f c

y m f ma da d b l al m w r d d a March 2002 r p r by h off c f Ma a ma d B d (oMB). tha C r ally-d r c d r p r h ma c a d b f f

mpl m e c v ord r 13166, “impr v Acc s rv c f r P r w h L m d e l hPr f c cy,” d by Pr d Cl A 2000.

th e c v ord r c ra f d ral a c mpr v acc pr ram f r -e l hp ak r , a d r q r f d ral a c ff r f a c al a a c f rma -ea v la a .




A D par m f J c da c p bl h d h amy ar ar c la ral pr c pl f r f d ral a c

r ha h y, a d h f d rally-a d pr rama d ac v ha h y v r , ma a c mpl a c

hr h ff r ad q a acc -e l hp ak r .35

i ha b d by h oMB a h r a d h r ham f d ral a c a d r c p f f d ral f dhav ak p ward rv -e l h p akp p la a a r l f h e c v ord r (eo). Bq a fy ac al d llar p ward c mpl a cw h eo 13166 ha pr v r m ly pr bl ma c,lar ly b ca f h lack f r c rdk p a df a c al ra par cy by f d ral a c hr ard. W h h m d, R pr a v V r a F(R-nC) pr p d l la 2009 (HR 1414), “thM l l al s rv c Acc Ac ,” l m a

p c la v r c a c a d w h eo 13166 a d cl d m a rabl d r f ra par cy h

pr c .

th a h r f h oMB dy d ha f r f d rala c p r c mpl a c w h h rd r, h r a “lack f ba l f rma ” pr v h val a f cr m al c . F r h r a , hch a m d l appr ach m h r C r ally-r q r d c ma .36

th f r m d l v lv Cal f r a a a d l cal a c , wh ch ar r q r d d r h rm f hDymally-Ala rr B l al s rv c Ac f 1973 pr v d f rma a d rv c la a h

ha e l h a d d by h r c . th a law r q r a c ha rv a “ b amb r f -e l h p ak p pl ” mak ava labl q al f d b l al aff p bl c c ac

p , a w ll a ra la d v r f ff c al d c m .

th r p r l c d h Cal f r a D par m f M r V h cl s rv c a r pr a v cady, a d calc la ha h a cy p $2.2 m ll (c a 2001 d llar ) pr v d -e l hla a rv c c mpl a c w h Dymally-Al rr . th a h r ’ c mp h hyp h cal c

h r a pr v d h am l v l f m r y la a rv c – $10.16 m ll 2008d llar .

i al, h dy c cl d ha h “L m d e l h Pr f c (LeP) Pr m m” f r pr v d wra d ral c mm ca -e l h p ak p p la fall w h a ra b w 1.7 p rca d 15 p rc . th y ar ha m v r m rv c ar pr v d d m ch m r charac r callyl k h ca d fall b w h 1-2 p rc ra ha h 15 p rc ra .

Wha ar h p r q r d f a f d ral a cy r c mpl a c w h a acc ra accr q r m l k eo 13166 r a hyp h cal f d ral b l al m r q r m f r h u d s a ? A

f l plac b a ch ckl c mp l d by gAo r arch r f r a 2005 r p r ab p ak byra a c mpr v h r acc f r LeP c m r . th gAo am d la a acc rv cff r d by 20 a c ar d h c ry a d d v l p d h f ll w l f ff r :

• i -p r la a a a c ;• B l al r m l l al l ph rv c ;• tra la d pr d rv c f rma ;• tra la d a d c ;• B l al l v , rad a d w pap r adv r m ;• B l al ra la d ma r al w b ;• tra la d r c rd d a c m a d l c r c ;• B l al l c r c rv c mach .

Puerto Rico Facts:Size: 3,421 sq. milesPopulation: 4.0 millionMedian household income: $17,741Urban population: 98 percentOfficial languages: Spanish, EnglishLiterac : 94.1 percent

Source: CIA World Factbook, 2010



a l a 5,000 pr mary r f h m r yla a , f d ral ff c m pr v d rv c

b h la a . A y f d ral mma a a pr p r al r pr a hpr val c f pr mary la a .47

C s bd v (CsD) wh r m r ha500, r 5 p rc , f h p p la makpr mary f h m r y la a m

ff r m ff c . if a CsD cl d ap p la f 30 p rc pr mary r f hm r y la a , all f d ral ff c rv

m mak f b h la a .48 Ad pr m ly by sc R d h b k,Lament for a Notion , h r q r m d r h p l f

ca d da l bl f ll h j b . “tw - h rd f Ca ada’ b l al p p la mad p f aFr ch p ak r ,” h b rv .49

R d d c var c m c c v a d ff c f Ca ad a b l al m ha may r l fc z . R d draw p c da a d m ra ha h f r h r rav l fr m Q b c, hl w r h p rc a f e l h- p ak r wh ar al pr f c Fr ch, a d h h h r h ra f Fr ch p ak r al pr f c e l h.50

H pr c c r ha ch “ v r m ma p la f h c m c val f ach la a ”al fl c h c d-la a ch c f mm ra a d h r wh h m la a hFr ch r e l h.51

th hr maj r c mp f Ca ad a b l al m l d h R la ar :

• B l al B f r F d ral empl y . i 2006, 71,269 Ca ad a f d ral w rk r h ldd a d b l al p . th am d 40.1 p rc f all p h f d raladm ra . of h , 63,756 w rk r m r q r m f r b l al la a k ll ,a d ar d pr m m f C$800 ach. th am d C$51 m ll d r c c f r hCa ad a b l al pr m m a ally.52

• La a tra f r F d ral empl y . th al c appr pr a d f r h ra wa C$30m ll 2006.53

• off c f h C mm r f off c al La a . th f d ral ff c , r ally cr a d h1969 l la , p C$19.8 m ll 2006-07.54

o h r law , cl d h D par m f Ca ad a H r a Ac f 1995, h Br adca Ac f 1991,a d h M m Ac f 1990 f rc ff c al b l al m acr h f d ral f r wh ch p b

r ach r pr a c r f c , a d pa a d c rr Cr w c rp ra .

Judicial Proceedings

s c 530-532 f h Ca ad a Cr m al C d pr v d a y acc d c z h r h r al by ha ma ra r j ry pr f c h r la a . th pr v d ma da h cl v

h r la a r al pr c d .55

i 2008, a w f d ral pr ram, h C r Chall Pr ram, wa r d c d w h h p c f cp rp f ff r f d pp r ca r la d l c r h .

th F d ral C r Ac r q r all ff c al r p r a d d c b p bl h d b h la a .

“Important: Under no circumstances shouldou directl or indirectl suggest to clients

that the speak our language or obligethem to do so, even if it is quite obvious that

the are bilingual.”-- “Good Morning. . . Bonjour”(a behavior manual for public servants),Treasur Board of Canada.




Potential Costs of Off icial Bilingualism in the United States th f ll w a aly d cr b h p al c f apply h Ca ad a m d l f ff c alb l al m h u d s a .

Spanish-Speaking U.S. Populationsi mp r a ha h la a c mm ly r f rr d a spa h h u d s a ac ally a fam ly f cl ly-r la d la a charac r z d by d al c , a d ha b rvabl d c

b w spa h a P r R c a d h r par f h u d s a wh r mm rapa r pr d c la a a w h r r m lar M ca r s h Am r ca d al c . u d s a C B r a ack wl d ch d c by h lab l “spa h r spa hCr l ” d fy spa h- p ak r . Wh l h y ac cal m lar b w spa h p k P r R c a d, ay, Ch apa r B A r ar r , p ak r f var y ca p c fac

m d ff c l f ra la .

th 2000 C d f d a p p la f 7,931,850 l v h u d s a w h l m d e lpr f c cy wh p ak spa h a h m . Ch wa h c d m c mm la a m r y w571,125 p ak r .

th C al d f d c c ra f l cally- la d h h ld , wh ch d f awh ch all m mb r a l a 14 y ar f a hav a l a m d ff c l y e l h. of h 4.4 m lll cally- la d h h ld r p r d h u d s a 2000, 68 p rc w r spa h-

p ak .

th h h ld w r c c ra d raph cally, w h h lar p p la l v Cal f r a,t a , Ar z a, n vada a d n w Y rk. L cally- la d h h ld al d b c c ra dam h lar m r p l a ar a .56

Applying Canadian Bilingualism Models to the United StatesA am a f h l al a d r la ry fram w rk f r h Ca ad a m d l f b l al m v

var c mpar r ard h w ach f h m d l m h b appl d h u d s a . Ba y ch d c k abl h a m a f l p r p c v m addr h p al cch c mpar . i h r f ch d c , v ral a mp , a d m c j c r ba r a abl a mp ar r q r d.

Five Percent RequirementF r ampl , a maj r c mp f h Ca ad a y m’ r q r m f r wh f d ral m

ff r b l al rv c ba d h ra f m r y la a p ak r C M r p l aa d C s bd v . F r p rp f h c mpara v d c , c w ll b d f r u.s.

ma . Acc rd h 2000 C , 591 f h a ’ 3,140 c had a l a 5 p rc fh r p p la 5 y ar a d v r p ak spa h a h m .

i rm f appr pr a p p la hr h ld f spa h p ak r a wh ch b l al rv c w ld br q r d a u.s. - q val f h oLA’ r q r m f r d a b l al f d ral p , hpr c d f r ha bar a 5 p rc m a l k ly a a y. C rr f d ral law r q r b l al ball f 5 p rc f a c y’ r d hav l m d e l h pr f c cy.57 th off c f Ma a m a d B d al d a 5 p rc hr h ld h r a aly f h .

$85 Cost, per American annuall ,of implementing Canadianbilingual model in the U.S.




Cost Estimates of Comparable U.S. Federal Bilingualism

Cross-Cutting Spending Ca ada ma a d 71,269 f d ral b l al p 2006 c 40.1 p rc f all p

h f d ral adm ra , acc rd Va lla c r a d C ch . th y d fy h c f h r b lb h mpl y b C$51 m ll .58

th u d s a had 1.9 m ll c v l a mpl y 2008, cl d P al s rv c mpl y .59 th u.s. P al s rv c had 656,000 car r mpl y a h ar f FY 2009,60 f r a al f 2,445,000f d ral mpl y . if 19 p rc f h (pr p r al h p rc f c ab v h spa h-

p ak p p la hr h ld ) ar ach pa d a a al b l al b f (adj d f r h b yp w r f h usD v r h Ca ad a d llar) h pr ram c w ld b $395 m ll .

e rap la h am pr c pl h c f la a ra f r f d ral mpl y , h c f la a ra f r u.s. f d rally-d a d b l al mpl y w ld b $978 m ll .

Ca ada’ gDP wa $1.319 r ll 2008, c mpar d w h h u d s a ’ a $14.61 r ll .61 thra f 11.1:1 w ll b d a a m l pl r f r arb rary c j c r , l k , f r a c , h hyp h calb d f a u.s. off c f h C mm r f off c al La a . i h ca , ha hyp h cal aw ld hav a a al b d f $208.8 m ll , wh ch m a c rva v ma , a l a ha cy’ arly y ar b f r h f rc f b r a cra c m -cr p d c p .

Private Sector Translation and Interpretationth Ca ad a off c f h C mm r f off c al La a c d c d 1997 h f rc mpr h v dy f h c h pr va c r f c mpl a c w h h C m r Packa aLab l Ac f 1974. tha dy d rm d h av ra r c rr c mpl a c c b C$0.002 p rd llar f c m r pr d c r v . Wh l h ma b a ally l w r ha ma dby R d a d h r cr c f h pr ram, rv pr v d a c rva v ba f r c mpar h ru h pr c d cr b d ab v , h pr d c a p al c mpl a c c h u.s. pr va c

f $7.8 b ll .

Table 2: Cross-Cutting Costs Projected Costs of Major Components of Federal Bilingualism (in millions)

Item Canadian Cost 62 United States Cost

B l al b C$51 m ll $395 m ll

La a tra f r b l al mpl y C$30 m ll $978 m ll

off c f C mm r f off c al La a C$19.8 m ll $208.8 m llF d ral i rpr a a d tra las rv c

C$279.3 m ll $16,280 m ll

Pr va c r c f b l al packa a dlab l

** $7,800 m ll




Federal Interpretation and Translation Services Coststh ca ry f c mpl a c c p rhap h m d ff c l ra la fr m Ca ada hu d s a , b ca c d r c ly h c r f h c l ral a d h r d ff r c b w hf d ral v r m f h w a . th Fra r i r arch r calc la d b rvabl alc mpl a c c f C$279 m ll acr all f d ral a c a d d par m .

Pr d c h p al c f ch ac v h u d s a m r d ff c l , a h lackf a c al ra par cy f r c da f c mply w h eo 13166 .

By calc la h p rc a f v rall b d lay p rpr a a d ra la rvf r ach Ca ad a d par m a d a cy, a d apply ha am p rc a h b d f f d rala c h u d s a , a ma d c f $16.28 b ll ca b pr j c d. F r h r a ra c

ha h ma a c rva v l h fac ha fall a h l w d f h rama d by h oMB h r 2002 ca d f r ff r h rv c .

ConclusionA ca b fr m h a aly , h q f p al a h d f r P r R c carr

f ca c , a a d p l cy mpl ca f r b h P r R c a d h u d s a . Wh l mad a l al f r pr c c ma d p d p l cy d c a d fac r ha hav y d l b ra d, h k w d m ra ha h c w ld b b a al.

F r ampl , h C r al J C mm ta a pr j c d 2006 ha h l k ly mf h ear d i c m ta Cr d f r P r R c d v d al f d ral c m a f l r w ld b $2.7 b ll

f r ach f h f r f v y ar f ll w a h d, a d $5.2 b ll f r ach b q y ar. A d hadj m ha w ld l k ly b mad h f d ral na al A a c f r P r R c pr ram h

v f a h d c ld a ly d bl h $1.76 b ll f d d FY 2009.

A f r h br ad r p al c f pa d ff c al b l al m h u d s a , m v mward h Ca ad a m d l m h m l k ly p l cy d r c v h pr c rc m a c .

Wh l Ca ad a b l al m ba d p a c mpl fram w rk f l al a d r la ry r q r mha c r c d v r ma y d cad , h p al c f ch a y m h u d s a -- $26.7

b ll a ally, r $85 p r Am r ca – pr a mp r a c d ra .




PROGRAM PROGRAM NAME Fy AMOUNT ($ million)

97.022 FLooD insuRAnCe 53,188.9

96.002 soCiAL seCuRitY RetiReMent insuRAnCe 2,960.8

96.001 soCiAL seCuRitY DisABiLitY insuRAnCe 1,893.9

10.566 nutRition AssistAnCe FoR PueRto RiCo 1,622.5

93.774 MeDiCARe-suPPLeMentARY MeDiCAL insuRAnCe 1,498.0

96.004 soCiAL seCuRitY suRViVoRs insuRAnCe 1,278.9

93.773 MeDiCARe-HosPitAL insuRAnCe 807.7

14.117 MoRtgAge insuRAnCe HoMes 745.8

84.063 FeDeRAL PeLL gRAnt PRogRAM 691.2PC.100 PRoCuReMent ContRACts--DePt oF DeFense 592.8

sW.500 sALARies AnD WAges--ALL FeD goVt CiViLiAn eMP exCePt DeFense & usPs 566.6

gg.400 tReAsuRY PYMt to PueRto RiCo-RetuRn oF tAxes & CustoMs Duties CoLLeCteD 373.0

64.109 VeteRAns CoMPensAtion FoR seRViCe-ConneCteD DisABiLitY 308.9

84.010 titLe i gRAnts to LoCAL eDuCAtion AgenCies 281.8

93.778 MeDiCAL AssistAnCe PRogRAM 280.6

sW.600 sALARies AnD WAges--u.s. PostAL seRViCe 273.1

DR.200 FeDeRAL RetiReMent AnD DisABiLitY PAYMents--CiViLiAn 265.3

10.410 VeRY LoW to MoDeRAte inCoMe Housing LoAns 259.5

Do.200 uneMPLoYMent CoMPensAtion BeneFit PAYMents 246.5PC.200 PRoCuReMent ContRACts--ALL FeD goVt AgenCies otHeR tHAn DeFense & usPs 227.1

10.557 sPeCiAL suPPLeMentAL FooD PRogRAM FoR WoMen, inFAnts, AnD CHiLDRen 221.3

84.027 sPeCiAL eDuCAtion-gRAnts to stAtes 208.2

93.600 HeAD stARt 208.2

14.850 PuBLiC AnD inDiAn Housing 201.4

sW.200 sALARies AnD WAges--DePt oF DeFense (inACtiVe MiLitARY eMPLoYees) 186.4

14.133 MoRtgAge insuRAnCe PuRCHAse oF units in ConDoMiniuMs 169.4

14.871 seCtion 8 Housing CHoiCe VouCHeRs 156.5

14.872 PuBLiC Housing CAPitAL FunDs 137.9

10.555 nAtionAL sCHooL LunCH PRogRAM 135.6

64.104 Pension FoR non-seRViCe-ConneCteD DisABiLitY FoR VeteRAns 94.5

84.367 iMPRoVing teACHeR QuALitY stAte gRAnts 92.5

Dx.970 CustoMs AnD BoRDeR PRoteCtion, PAYMents to PueRto RiCo 90.0

Dx.200 FeDeRAL eMPLoYee LiFe/HeALtH insuRAnCe PReMiuM PAYMents--eMPLoYeR sHARe 88.3

20.507 FeDeRAL tRAnsit FoRMuLA gRAnts 81.3

14.195 seCtion 8 Housing AssistAnCe PAYMents PRogRAM-sPeCiAL ALLoCAtions 76.2

93.558 teMPoRARY AssistAnCe FoR neeDY FAMiLies 71.5

84.268 FeDeRAL DiReCt stuDent LoAns 68.0

APPENDIX

CONSOLIDATED FEDERAL FUNDS REPORT: Fiscal Year 2008Selected Programs by Size of Expenditure - Puerto Rico




SUMMARy TOTALS Fy 2008 AMOUNT ($ million)DIRECT EXPENDITURES OR OBLIGATIONS

RetiReMent / DisABiLitY PAYMents FoR inDiViDuALs (DR) 6944.7

otHeR DiReCt PAYMents FoR inDiViDuALs (Do) 3313.0

DiReCt PAYMents otHeR tHAn FoR inDiViDuALs (Dx) 484.2

gRAnts (BLoCK, FoRMuLA, PRoJeCt, AnD CooPeRAtiVe AgReeMents) (gg) 5218.9

PRoCuReMent ContRACts (PC) 887.3

sALARies AnD WAges (sW) 1109.7

totAL DiReCt exPenDituRes oR oBLigAtions 17958.0

totAL DiReCt exPenDituRes oR oBLigAtions - DeFense 879.9

totAL DiReCt exPenDituRes oR oBLigAtions - non DeFense 17078.1

OTHER FEDERAL ASSISTANCE

DiReCt LoAns (DL) 102.7

guARAnteeD/insuReD LoAns (gL) 1279.4

insuRAnCe (ii) 5357.0

s rc : u.s. C B r a , C l da d F d ral F d R p r f r FY 2008

CONSOLIDATED FEDERAL FUNDS REPORT: Fiscal Year 2008 Detailed Federal Expenditure Data -Puerto Rico




1 u.s. H f R pr a v , H.R. 2499, R p r n .111-294.

2 CiA W rld Fac b k, Ja ary 15, 2010.3 u.s. C B r a , C l da d F d ral F d R p r

f r FY 2008.4 P r R c off c f Ma a m a d B d , FY

2009-2010 B d .5 J C mm ta a , “A ov rv w f h

sp c al ta R l R la d P r R c a d a A alyf h ta a d ec m c impl ca f R c

L la v op ,” (JCx-24-06), J 23, 2006, p. 3.6 Ibid.7 gAo-06-541. Puerto Rico: Fiscal Relations with the

Federal Government and Economic Trends during thePhaseout of the Possessions Tax Credit ,. g v r mAcc ab l y off c , s f ll w .

8 th mmary f h l al r la h p f P r R c h u d s a ba d a 2006 g v r m

Acc ab l y off c (gAo) a aly , wh ch wa alappr v d by h g v r r f P r R c , gAo-06-541.

9 gAo-06-541 p. 28.10 u.s. C B r a , 2007 Am r ca C mm y s rv y.11 u.s. C B r a , 2007 Am r ca C mm y s rv y.12 gAo-06-541, p. 21.13 u.s. C B r a , 2000, h p://fac f d r.c . .14 u.s. C B r a , 2007 Am r ca C mm y s rv y.15 B r a f Lab r s a c , R al a d s a

u mpl ym s mmary, n v mb r 2009.16 gAo-06-541, p. 15.17 “B W r ec m c s m l a d J b … P r

R c ?” Pa r k J ,The Christian Science Monitor ,oc b r 31, 2009.

18 g v r m D v l pm Ba k f r P r R c , J ly2009.

19 “ARRA F d , R m War, s may r t p s r f rP r R c DC,”Puerto Rican Daily Sun , D c mb r28, 2009.

20 gAo-06-541, p. 24.21 www.r c v ry. v acc d F br ary 16, 2010.22 “P r R c ec my shra k 5.5 Pc F cal ’09,”

A Cra , R r , A 21, 2009.23 Wh H off c f Ma a m a d B d .24 g v r m D v l pm Ba k f r P r R c ,

“P r R c Ba c Fac ,” 2008.25 J d Wa k ,The Way the World Works , Wa h ,

DC: R ry P bl h , 2008, p. 287.26 J C mm ta a , p. 4.27 Wa k , p. 305.28 gAo-06-541, p. 11.29 Ibid.30 C ll , .al., p. 9.31 gAo-06-541, p. 0.32 J C mm ta a , pp. 65-70.33 Ibid, p. 72.34 ta P l cy: A aly f C r a P al eff c f

e d F d ral i c m ta a P r R c , gAo/ggD-96-127, A 15, 1996.

35 65 F d. R . 50123.36 off c f Ma a m a d B d , “R p r

C r : A m f h t al B f a d C f impl m e c v ord r n . 13166,” March 14,2002.

37 gAo-06-52, “La a Acc tra p r as rv c ”, g v r m Acc ab l y off c , n v mb r2005.

38 Ibid, p. 37.

39 Ibid, p. 26.40 gAo-09-753R, “M m C r f r M d car a d

M d ca d s rv c La a Acc P l cy”, g v r mAcc ab l y off c .

41 th Fra r i , “off c al La a P l c a hF d ral L v l Ca ada: C a d B f 2006,”Fra c Va lla c r a d ol v r C ch . May 2009.

42 R d, p. 223.43 Fra r i , p. 32.44 Ibid., p. 7.45 Ibid., p. 2.46 Ibid., p. 16.47 Ibid ., p. 17.48 Ibid,, p. 18.49 sc R d,Lament for a Notion: The Life and Death

of Canada’s Bilingual Dream , Va c v r: Ar al P lpPr , 1993. p. 169.50 Ibid., pp. 108-109.51 Ibid., p. 93.52 Fra r i , p. 3.53 Ibid.54 Ibid.55 Ibid , p. 18.56 u.s. C B r a , C 2000, s mmary F l 3.57 “spa h-ball s Cl ar H rdl ,” sa a sarmah,

Orlando Sentinel , F br ary 5, 2009.58 Fra r i , p. 28.59 B r a f Lab r s a c , www.bl . v.60 u.s. P al s rv c , P al Fac 2009, www. p .c m.61 CiA W rld Fac b k, F br ary 4, 2010.62 Fra r i , p. 28.

Endnotes

Don Soifer is ExecutiveVice President of theLexington Institute.



1600 W l B l vard, #900Arl , VA 22209

Ph : 703-522-5828Fa : 703-522-5837

www.l . rma l@l . r

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