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Politics At war with Milei over the withdrawal of funds for transportation and education, the governors advance through judicial means - Infobae

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At war with Milei over the withdrawal of funds for transportation and education, the governors advance through judicial means - Infobae


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Febuary 14, 2024

The provinces demand dialogue to advance a fiscal pact, but they have no answers from the Nation. They demand cuts to the financing of programs and trusts for works and services. Resources for transportation and education put the interior on alert

By Robertino Sanchez Flecha

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meeting of governors of together for change

The Government is determined to sustain cuts to the provinces by subtracting funds intended to pay for services and programs carried out in the interior. It is an attitude that Javier Milei adopted in retaliation for the lack of support from the provinces with the deputies who respond to some territorial heads to the approval of the Law Bases and Starting Points for the Freedom of Argentines (Omnib us Law). The governors began to communicate with each other and agreed to move forward through judicial means to stop the onslaught of the Casa Rosada.

It is a situation that takes to the extreme the institutional conflict that the Government faces at the dawn of its mandate. The failed session for the Omnibus Law exposed the parliamentary fragility of the ruling party. The hand-to-hand confrontation with the governors exposes the lack of territorial presence of the political force of the Head of State. Milei does not have any governor from his party . He manages the knobs of the national State without legislative support or territorial support. Will he have a place in the Judicial Branch, the third and final state power? Otherwise, Balcarce 50 will have to take charge of dozens of litigations against the provinces that are committed to defending the resources for their coffers in court.

From Chubut, Nacho Torres instrumented his legal team to file a precautionary action against the national State for the removal of the subsidy for public transportation . It was due to the decision of the Executive Branch last Thursday to withdraw the Interior Compensatory Fund that was intended for collective companies in the interior of the country. With that money, the provinces could indirectly subsidize public transportation fares. That fund contemplated about $102,000 million . Without the Omnibus Law, the Government decided to advance the goal of serious fiscal deficit through cuts to trusts and budget items allocated to the provinces.

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Javier Milei with Pope Francis, on his visit to the Vatican (REUTERS)

The move from Chubut is the first. The league of governors of Together for Change was in contact via WhatsApp and by calls that took place throughout the long weekend. In that group are, in addition to Torres , Rogelio Frigerio (Entre Ríos), Marcelo Orrego (San Juan), Jorge Macri , (City of Buenos Aires) Alfredo Cornejo (Mendoza), Gustavo Valdés (Corrientes), Claudio Poggi (San Luis) , Leandro Zdero (Chaco) and Carlos Sadir (Jujuy).

Each district experiences a particular situation, although the leaders seek to appear united in the offensive against the Government. In the absence of leadership to order them, they do not have a univocal or clear strategy . In principle, it unites them and mobilizes the need to put a stop to Milei regarding the decision to advance the fiscal adjustment with cuts to the provinces.

As Infobae learned through Open Budget, and in dialogue with the provinces, the national government currently allocates $88 billion in monthly subsidies to the AMBA only for groups. This figure does not include subways or trains, means of transportation that are practically non-existent in the interior (the train does not reach all cities). On the other hand, to the entire interior, the State transferred around $11.5 billion per month in the last quarter.


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A group of governors and legislators met in January at the Federal Investment Council (CFI) with Guillermo Francos, Minister of the Interior

According to the last devaluation ordered by the national government last December, which took the official dollar to $800, and the growth of inflation, the provinces estimate that the figure for transportation subsidies would go to $150 billion per month for the AMBA, while for the interior it would be zero . “This is re-editing the fight between unitarians and federalists before the federalization of Buenos Aires in 1860,” a northern governor denied to this media.

Adding to the JxC group is the discomfort of non-Kirchnerist Peronist governors, who act alongside the radicals and the PRO. Martín Llaryora , from Córdoba, is the reference of that agreement. The people of Cordoba have not yet decided to move forward judicially for the removal of transportation subsidies, although they are evaluating doing so regarding the national government's debt for pension funds.

Along with transportation subsidies, there are 13 provinces that have their own pension system . In these cases, Anses covers a part of the deficit of the non-transferred pension funds. The rest of the provinces, on the other hand, transferred their pension funds to the central State after the constitutional reform of 1994. The case of Córdoba is historic. The people of Córdoba maintain that Balcarce 50 must still cancel a debt due to the deficit in the retirement funds and are considering insisting on the same proposition in Court.

The fight over education funds​


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The Ministers of Education of the provinces complained to Carlos Torrondel, Secretary of Education of the Nation, for the withdrawal of funds to finance educational programs in the interior
Another of the resources claimed are those allocated to education . Specifically, the National Teacher Incentive Fund (FONID) , which the Government announced last Friday the suspension of national contributions to teacher salaries. With this decision, the beginning of the school cycles in more than one province is in danger.

Based on that news, the governors instructed the Ministers of Education of all the provinces to meet and issue a note to the Government in order to address the situation. On Friday, the Federal Council of Education met in the City of Buenos Aires with the presence of the 24 officials of the educational portfolio of all jurisdictions.

The ministers signed a note addressed to Carlos Torrondel , Secretary of Education of the Nation, to demand that funds for educational financing in the interior not be cut . In the letter, the officials demanded the continuity of programs such as the FONID, the National Educational Programs, the Infrastructure Fund, the Teacher Salary Compensation Fund, Connectivity and Teaching Material.

The Casa Rosada intends to apply a fiscal adjustment by cutting the trust funds that send money to the interior for different works and services programs. There are about 30 trusts for this purpose, managed by the Government and which represent an expenditure of about 2% of the Gross Domestic Product (GDP) per year.

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Patricia Bullrich, Minister of National Security and president of the PRO, will receive today the governors Rogelio Frigerio, of Entre Ríos, and Nacho Torres, of Chubut (EFE/ Juan Ignacio Roncoroni)
Milei landed yesterday from his international tour of Israel and Italy and has not yet determined whether he will maintain his attitude of political confrontation with the governors, based on an adjustment to the provinces. The governors insist on the need to advance a fiscal pact and lower the level of the fight with the Government.

Bullrich pulls his strings​

In this context, Frigerio and Torres plan to meet today with Patricia Bullrich in Buenos Aires. The hook of the meeting is the management of security in these jurisdictions regarding complex and federal crimes, within the scope of the security forces controlled by the minister of the area.

However, the conclave will also be a moment of political articulation. Bullrich is a bridge between the Government and the PRO, in the middle of talks for a merger between that party and La Libertad Avanza. As well as the former candidate for President, she builds bridges with the PRO leaders to bring closer positions with the Casa Rosada and seek consensus.

Both leaders will take their claims to Bullrich with the idea that they reach the ears of the Sillón de Rivadavia. The two governors believe, along with the majority of their colleagues, that it should be a priority to redirect the dialogue with the Nation to achieve a new fiscal consensus that unblocks the current political dispute between the subnational states and Milei.
 
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