newsletter, which is part of inter-american dialogue. managing editor at gallup. >> i also want to welcome our cspan and public radio audiences. you can follow the action on twitter. use the hash tag npc live. npc live. on twitter. well, puerto rico to put it plainly, is in teep financial trouble. the u.s. territory's population is the size of oklahoma. yet, its debt of $70 billion is greater than any u.s. state except for california. and new york.

puerto rico is poorer than the poorest u.s. state. its economy has been in recession for about a decade. the territory and its agencies have $957 million in debt payments due on january 1st. there are questions over whether firefighters and schoolteachers will be paid. the island found it easy to borrow because the bonds it issues are except all over the u.s. however, the shrinking economy and taxpayers escaping to the mainland in the hope for a better future have made it more difficult to pay off the debt. leader of the island's popular democratic party wants congress to allow the u.s. territory to

declare bankruptcy. padilla, who was elected governor in 2012, told a senate committee earlier this month, quote, let us be clear, we have no cash left. >> he said that allowing puerto rico to declare bankruptcy would give the territory to resfrukture the debt and a kourlt to provide process. the obama administration supports the bankruptcy request. introduced a half dozen bills that would help puerto rico, but none were passed in either chamber. just last night, leaders announced that the year end spending bill expected to win approval this week includes aid

for puerto rico, according to lawmakers, this bill provides almost $900 million to puerto rican doctors and hospitals over the next decade. it does this by increasing payments for the hospital days of medicare patients in puerto rico. now, to give us the latest on what this aid will mean for federal reserve's financial play and whether it will be sufficient to help puerto rico get through the winter, we now turn to the governor himself. ladies and gentlemen, please join me in giving a warm, national press club welcome to governor padilla.

>> thank you. thank you so much. for that kind introduction and invites me to join you today. my constituents are strong, hard working, proud american citizens. we have when the rest of the country has since then. hundreds of thousands of puerto ricosens have brafly answered the highest call iing in their lives, this proportionate number in the great war.

millions continue to common good and continue to their communities. here, the mainland, the island and overseas. in every state. in recent years, puerto rico's economy issues have been in news and many of you have highlighted the problem that people face and we have made it very clear that we need help. i fully expect that by today --

why was i of this opinion? i will give you four simple reasons. o one, because of the severity of the crisis we're facing puerto rico. the commonwealth have lost access to the market. we have been able to provide services only because we are withholding tax reform and payments. and because we have assets from the workers, our pension. sometimes, our best trained people are lead leaving the island mostly these would only increase.

our economy continues to deteriorate. two. and the financial market knows that. three. because without the restructuring mechanism, the fall will be chaotic. leading to complex and very costly situation. four. because the restructuring framework will avoid chaos without costing one penny. the united states taxpayers. but today, i am extremely dispinted. why? because yesterday, yesterday,

congress needs an opportunity to do the right thing. hedge funds grew more per spacive over congress than they were being of 3.5 million american citizens. living in puerto rico. i wanted to say that. hedge funds grew more per spacive over congress than 3.5 million american citizens living in puerto rico. they are in the middle of a crisis. we are losing our worker, our consumers, our tax base to our economy. since i took office in january

2013, my -- has taken bold emergency measures to address this crisis. i reduced 24% of our expenditures. 24% of our expenditures. we approved additional measures including increasing the gas tax and rates. on gross collective bargaining agreement. routes have been cut, our largest form was -- from the sales tax to value added tax with 11.5% rate. we reduced attrition around 15,000 from government payers.

injurying services. in june, i laid out a comprehensive report for our crisis and a realistic picture of the future. the reality is that we cannot save our debt. we can pay our debt. earlier this month, i announced that the commonwealth will meet by defaulting on junior bonds to try to pay bonds back by the full faith and credit of the commonwealth. we are and we say at the same spanish goals -- there's

something very, very important to understand here. it's important to remember this crisis starts here in washington. here in washington, this time. 1996 congress -- it was essential to attracting businesses to the commonwealth. it led directly to a recession. the more congress has

underfunded puerto rico's medicare and medicaid programs, we pay the same tax as everyone else in the united states so ensure our seniors and citizens are protected. but we have been singled out. now, we are out in the cold. and yesterday, congress blocked puerto rico from getting the legal protection that would have helped us weather these storms. we are not asking for hand out. puerto rico is not asking. puerto rico has not asked for a bailout.

we are asking for fairness. it has been denied. this past monday, i announced that i was not seeking re-election. my desire, i have felt that i had to commit all my energy to solving the fiscal and economic crisis that i inherited. i will like to return to puerto rico with the tools that will enable us to move forward. congress has denied.

i go back to join -- ready to do everything. i have said before and will say it again. this is not -- this is simple math. we have no cash to pay and we will default that's a fact. it is not a matter of whether we pay or not. it is an issue of how congress decides puerto rico default. it will either be an orderly process or chaotic. congress will either provide a

broad framework that costs nothing or allows for further disruptions. the puerto rico economy and cause more people to flee the island. and into the more than 10% of our population, that over the last decade at my rate. congress has held mutt principle hearings on this crisis. the facts are well-known. congress has been warned. wall street won this one. and congress will provide the tools we need.

in the meantime, the meantime, it seems, that if more members of congress, we are only good to send to the front line of war once again. but this time, the casualty of congress. now, i will go back to puerto rico to commend ledge islators, business leaders and labor leaders. to chart our next steps. thank you for having me.

>> thank you so much, governor. i mentioned in the introduction while congress didn't give you what you came for, they said you're going to get $900 million in medicare over the next ten years. what does this accomplish, how much does this help? >> get to the room with a stroke. it's with the diet. you are having a stroke, you need to eat better.

>> so, what do you do now with congress? do you continue to lobby, work this or what happens next? >> we will continue. the factst are there. they know the facts. there's no single argument. let me be very clear. will be for everybody. the essence of that framework will be bad for everybody. not having that framework, get us into a litigation that will be very expensive, complex in different courts.

everywhere in the united states and puerto rico. was recent. no one says what. and we need to fight in every corner of the united states, who who will collect first? no one knows.

and people would never have enough money to put in. this questioner says it's clear from the negotiations on this omnibus bill, this bill we're talking about, it's clear from these negotiations that republicans don't want to give puerto rico access to bankruptcy protection, so, will you keep asking for that specifically or will you change, do you need to come with a new type of proposal for them? >> puerto rico and the administration concludes, everybody thinking about this concludes there's only one way.

it's a way of trying to help kick the can. they'll give you for ten years, $70 billion set. i saw them in the first couple of months, be more expensive and it would be and the ball will remain in their court. i was asking them to give me the tools. puerto rico's issue, we need to tools. i'm asking for the tools. if they do not, the ball will remain in congress court. today, the ball is in congress

court. >> so, could you walk us through what will happen on january 1st when puerto rico faces this $957 million debt payment, are you planning to pay at least some of it? or delay the payment? what will you do? >> puerto rico will default in january or in may. there's no money. i have no, printing machine. there's in money. and constitution guarantees the people of puerto rico to provide essential services and i have no money to provide essential services and to pay the creditors. they need to understand that. i always do my best to do both

things, the time will come very soon, january 1st, trying to avoid it. january 1st, have money to do both things and if they make me choose, i will choose puerto rico. always. there's tho question about it. if i need to choose to pay an essential service to puerto rico or a creditor, they can -- that i will puerto rico. >> so, what will happen when you defaulgt fault? >> i will be through. cash and cover may close. essential services will be lost. i will not have money to pay essential services like security. like health care. like proriding health care. and -- >> what will happen?

what will they provoke? >> our economy go to the bottom again. and if the economy goes to the bottom again, what will happen, next thing is money to collect. i will have less money to pay creditors. and so on so on so. so, every month will be worse for us and for creditors. who put it into that death spiral? creditors and -- and that will be expensive. because to put the economy on to its feet again, that will cost. so, we are about to get into a

humanitarian crisis. just compare to a disaster in puerto rico. just compare to that. >> in your talk, you mentioned the 24% budget cut that you had made. what about additional budget cuts, do you anticipate more? >> more than 80% of our budget is to pay police people. firefighters, nurses and the medical center and teachers. 80%. we get to the bone. we get to the bone. all right. there's no way to cut. i could use 75% need in agencies. 75% for each $4 we've sent,

but they want me the fire people. if doi that, if i fire people, i will damage the economy. so i will get the message final. and i will be choosing them against puerto rico. i will never do that. >> you have said before that if congress doesn't act, you will turn to the white house for help. what would you ask the white house to do and can cthey take any unilateral action to help you? >> we find out there's no -- with our congressional, action.

that will solve the problem. if they are waiting to solve the problem, we haven't found out a way. where without commercial action will be different. arguing to kick the can. and the problem will get worse. it will be worse in a couple of years. the debt will be higher. the facts are there.

i hear someone saying that we have enough money to pay the debt. in the bankruptcy process, the first thing that a debtor needs to prove to the court is i have no money to pay. i just hope the congress people remember the name and the faces of those that lobbied there, telling them that puerto rico has money to pay and they will not be stopping without a crisis. i just hope that the congressman and woman and the senate person and the name. because the henl funds and budget bonds and creditors will need to change. if the congress people, underneath.

questioner says your remarks connco contained no reference to the long history of puerto rico's profligate spending or selling junk bonds. didn't porz see this calamity coming years ago and what reasonability does puerto rico hold for this crisis? >> yes. a lot. the crisis began here. what happened. allowed a competitive advantage to puerto rico to bring american companies to puerto rico. those companies went to china or japan. they went to puerto rico.

why congress approved, because of the other crisis and with section nine, congress told puerto rico to work out. with the ten-year period that ends in 2006. what happened in 2006 we walk into the session again. were those back to the states, the answer is no. they went to singapore, to ireland. so, congress sent those jobs to singapore, to island, to vietnam, to new zealand. what government in puerto rico to address that issue.

and government, governors from both parties, both parties, begin to fill the gap with loans. then they began to take loans. to fill the gap and to pay loans. between 2006 and 2012, puerto rico doubled the debt that would accumulate from 1981 to 2005. 1941 to 2005. so, what we accumulate doubled, 2006 and 2012 because two governors tried to fill the gap.

and to pay loans with loans. what's wrong and they knew it. they knew the numbers. they were there. so i think there's a shared responsibility. how about you yourself? did you do anything as governor to make the situation worse and knowing now what you know, do you wish you had done anything differently? >> yes. a lot of things. first, i was wanting and i deci decide, asked me in the elevator

if i when i was running, fw i thought would be that difficult and the answer was no. the answer is no. the governor of puerto rico, my predecessor, used to say that the deficit was 333 million. 333. and in the process, we find the decision, 2,200 millions. $2.2 billion and i said the count, but in puerto rico, they would not allow the winner to ask for a recount.

so, i decide not to convey the message to puerto rico to drive drive a positive message that this is the real thing. this $2.2 billion, but you know what, we will succeed. let's fight together and we will make it happen. just forget the pact. we both claim that i need to need to communicate the real problem. and to challenge congress earlier. that's the main thing.

>> vo you approached the republican or democratic principle contenders to ask them to make the crisis in puerto rico a campaign issue, especially since the latino is crucial to both parties? >> yes, and i have to say, i don't want to miss anyone. secretary clinton addressed in puerto rico. governor martin o'malley addressed the issue in puerto rico. senator bernie sanders in puerto rico. senator marco rubio addressed the issue. bush addressed the issue i think for the process.

i don't think it's any other. senator rubio has other than schumer and -- they are the ones puerto ricans. in what is called a battleground state. to be there. you bet. >> you think voters will remember this issue when they go to the polls? >> let me tell you, if we have an issue, puerto ricans in the state, they remain passionate. puerto rico tv. what they see in the local

newspapers, t local news, they are not into american politics. they know the crisis. they know the real thing. and of course, there will be an election day in the united states. they will not look back to puerto rico in the next 11 months. i do my best for them to register. you bet. i do my best. everything in my power. >> why has the government of puerto rico been unable to produce the financial statements that senator hatch and other republican members have requested as kpmg made an auditing mistake? >> well, the fact it's not puerto rico that released the statement, it's a private

company we contracted. and we provide with everything they have asked. everything they have asked. but they are following their process. we request them to do it. to timely do it, but we have done our part. that's an excuse. that's why. they know the numbers. an independence report, for the first time in the commonwealth history, economic chief from the natural -- to do a study. a little study.

so, congress have more information today about puerto rico than ever before. that's an excuse. they have the numbers. what they bring to the hearing, told them that they're going to need to, they will have it as soon as kpmg. they have the numbers. they are looking for excuses, they don't need to say anything. just do whatever they want. >> you mentioned all the people leaving puerto rico and coming to the united states. what are you doing or can you do to stem the tide of people leaving and what can you do to entice people who have left to come home to puerto rico? >> very good question. the unemployment rate between

2009 and 2012 in puerto rico was 16.5%. right now, it's 11.4, so, we are doing better, but to bring them back, we need to do a lot better. and to go to single digits, from 15.5, you need to divide by 11.4 at some point. so, we are in right direction, but to bring those to keep we have, we need two more. that's why bringing our economy back is the key, is the single more important issue for puerto rico right now.

second. 2010, 2011 and 2012, were the years with the highest crime rate in puerto rico history. puerto rico's 100 miles per 35 miles. and each of those three year, we have more than 1,000 murders per year. right now, we have a little bit more than half. of what we had in 2012. we have more than the half of what we had in 2011. more than 40, less than 50%. you reduce crime rate and everybody looks when moved to

some place to be safe place and to have a decent job to brick bring to the table of the family. what we need to do, keep working on unemployment rate. keep working on crime rate. both go back up an will be part of the crisis that will allow american taxpayers because of the inaction of congress. >> this questioner says last month, i visited san juan and was shocked at the number of restaurants and mid sized hotels that had closed. could you comment on these business closures and how the tourism industry is responding to this crisis. >> well, so sad that you weren't

there three years ago because then, you will be crazy. tourism is, the only central economic debt that is out of recession. the only hotel that closed in my administration is already working to reopen. there are others that anyone see we're closed. closed more than five years ago. we have been able to break records on cruise ships. in the last three months, there have been no single moment where we have a hotel opening or on construction, the new one.

they are back again. just to give you an example, 1986 was the first time the international airport received a million visitors. in 2010, for the first time since, we received less than millions. i was working to get back to 8 millions in december 2014 and we went to 8.5 million in december 2014. so, tourism is -- i may say, we are growing in manufacturing, culture and tourism, but tourism is out of recession. it's way ahead of the others, but as anyone can see, with the whole sense of closing in the past and we are trying to

reopen, i can name a few. renaissance, normandy, intercontinental, that closed many years ago. we are working to reopen those. there's still work to do. a lot of work to do. >> will you call a special session of the puerto rico legislature to consider the preppa revitalization legislature? >> that's something i'm working with, the speaker of the house in puerto rico. and that's a possibility. >> will you wait for a supreme court decision to submit creditor settlements to the legislature? >> no, that will happen in june and if we choose not to call for a session, the new session will begin in january, so, make no sense to wait in june or july.

>> how do you expect your decision not to seek re-election will affect puerto rico's negotiations with the creditor regarding the debt restructure? >> well, creditors will have no one to bet against. sorry, guys. if they are ready to spend on fund-raisers against me, puerto rico politics is is not like united states politics. nothing to do with. i have be here -- puerto rico. puerto rico is a a litton american country. that's the truth. we are we are lacking our american citizens, but we are lacking puerto rico.

we are very proud of it and we want to remain latins. i will give you some clues. only 3% of the population is english. counting me affluent. you know the atm machines? ask puerto ricans, puerto rico, anyone, the atm machine is puerto rico, you want instruction in spanish or english, 96% instruction in spanish. so, we can contain lia latin american country, is very intense. very, very sbreintense.

rallies are a thousand of people. we do something we call karawana, hundreds of thousands of cars with flags. and boom box and like it. we really like it. we enjoy it. we like it. and it's a way, it's the best way to get information to people. because you will have a house and i like to be with people. imagine that from january to november and at the same time, with the other hand, trying to fix the fiscal crisis.

there's five. there will be no chance of doing both things. fixing the crisis and preventing those that create the crisis to come back to power again in puerto rico, so, i choose to be faithful to the future more than to the present. of the island. and i think that's what allowed me to address and to use all my energy to the more important thing that is to prevent the crisis other than to be re-elected. >> governor, before i ask you the final couple of questions, i have some housekeeping. so you can catch your breath for a moment. the national press club is the world's leading professional organization for journalists. and we fight for a free press worldwide. to learn more about the club, go to our website, press.org and to

learn about our non-profit journalism institute and to make donations to the institute, visit press.org/institute. i'd loiikeremind you about some upcoming events at the national press club. estonia's minister of foreign affairs will appear at a national press club news maker tomorrow, december 17th at 3:00 p.m. a human rights activist this coming saturday will address a national press club luncheon on friday, december 18th. and the chief of naval operations, admiral john richardson, will address the national press club luncheon on monday, january 11th. i would now like to present our

guest with the greatest prize of all at the national press club, our mug. and we hope at a time when you can be gaining some rest back this puerto rico you enjoy a nice warm drink out of that mug. >> i will. coffee, of course. >> so who do you think should be the next governor of puerto rico? [ laughter ] >> i already choose, but being the president of the party that i was elected for, i think that will not be fair if anyone wants to run knowing that the president of the party and the incumbent will try to tilt in favor or against any of the members of the party.

so i think that we have a lot of talent. i think we have more people that can do the job, and i will be glad to help any liberal candidate as me on there. >> and what will you do when your term ends? >> you hear progressive, right? it will be progressive here. i'm sorry? >> what will you do when your term ends? >> i have three kids and a wife, and we need to move forward. we need to work. i'm a lawyer. i like to farm. i'm a lawyer, a very good person. [ laughter ] >> i will go out and work. i was in practice in the legal profession prior to the state senator or consumer affairs secretary, and i like to go to

court and represent clients. it's something that i like very much and i like to farm too, so i'll probably do both. >> you unlike most previous governors of puerto rico grew up on a farm. what did you learn on the farm that's been helpful or handy to you as governor? >> that's a very tempting question, but i will avoid any reference to cattle. cattle is when you go in the horse with the other animals, right? no, i will avoid that. my grandfather, who was my everything, i was most of the time with him, taught me how to drive standard, manual, in a

tractor. when we were breaking the ground, plowing. and he always told me look to the front. never look back because we need to make this straight. if you look back, inevitably because the metals that break the ground are outside, you will get confused and you will steer, so look to the front. forget about the ground. and that's something that i have been trying to do in the last three years, the last three years. keep my eyes focused on the end

line, on the end line, and try not to look back and not to blame people for where we are. and that makes it harder, as i said before, because people sometimes wants someone to blame. people know everybody in puerto rico know we didn't create the crisis and they are right. that's why i ask puerto ricans to just look to the front and to try to keep focused on our goal, that is bring puerto rico out of the recession. >> final question, governor. do you expect puerto rico to ever become a u.s. state and if

so, when? >> the answer is no. pluribus unum. we are not part of that. we are puerto ricans. every time we're asked a question about independence and staid hood, we have never had an answer over 47% in statehood. last time they did more than one question, more than one answer. i call puerto ricans to vote blank because the commonwealth wasn't on the ballot. they have more than 50% because they do not count blank ballots. and the opposite party called

for a blank ballot. if you are a blank ballot, again 46%. let's get real. first we are puerto ricans. second, let's go to the facts. commonwealthers, progressive people, will tell you that will not work. statehood people will say it works. let's go to the general accountability office, gao. they issue a report on march 2014, last year. go there on the burden of statehood for puerto rico and you will see that statehood will destroy puerto rico economy. it's not a pro-commonwealth position. it's not a pro-statehood position. it's a general accountability

position that we will lose every competitive advantage that we have today. if you think that we have a deficit now, imagine if i need to reduce my budget to allow federal taxes. it's just crazy. and i will tell you a secret. pro-statehooders never mention that report from the gao. never. they don't like it. there's the answer. from a sociological reason, we are puerto ricans that are american citizens. we are not american citizens that are born in puerto rico. we are puerto rican that have american citizens.

second, it will destroy our economy. the answer is no and the second question was when. never. >> ladies and gentlemen, how about a round of applause for our speaker? [ applause ] >> i'd like to thank all of you for coming today, and i'd like to thank all of our viewers and listeners. i would like to thank the national press club staff for helping us organize this event. if you would like a copy of this program, go to our website press.org. thank you so much. we are adjourned. [ applause ]