Statehood? Sovereignty? Bankrupt Puerto Rico heads to ballot box for ‘status’ vote

cnbc.com SAN JUAN, Puerto Rico — The question of "status," whether Puerto Rico should be admitted as a U.S. state, remain a commonwealth or seek sovereignty — has been an undercurrent of every major policy decision here for the last century.

But rarely has the issue been as prevalent as it is today, with the economy in a recession for a decade and the island triggering the largest municipal bond market bankruptcy in U.S. history in May, a process being overseen by a seven-member oversight board appointed by Washington.

Voters in Puerto Rico will head to the polls on Sunday, for the second time in five years, to share their views on status, as it is known here. Some see statehood as the best way to pull Puerto Rico out of its economic crisis, others blame the U.S. for the malaise and would rather seek independence after five centuries of what they call colonial rule.

The sovereignty view is and has been a minority in Puerto Rico. Statehood was prominent during Puerto Rico's election in November when two pro-statehood candidates won: Ricardo Rossello, a Democrat, became governor and Jenniffer Gonzalez, a Republican, was elected resident commissioner — Puerto Rico's sole representative in U.S. Congress who can write and submit legislation, but doesn't have the authority to vote.

The truth is, whichever way the residents vote, the plebiscite is largely ceremonial. Admittance as the 51st state would require a statute by the U.S. Congress. The last time Puerto Rico voted on the issue in 2012,when a majority opted for statehood, nothing changed. It's largely up to the government to lobby officials in Washington to change the island's status.

Now, given Puerto Rico's financial distress, many on the mainland are questioning whether the timing could be any better. The governor insists that statehood isn't about using federal tax dollars to save Puerto Rico. But rather, it would put the island on equal footing with other states, which would improve its economic situation, he said.

Puerto Ricans have been U.S. citizens since a law made them so in 1917. However, their benefits relative to mainland citizens have been limited. One issue prevalent among many residents is that they pay in full for Medicare, Medicaid and Social Security but can only collect on a restricted amount of these benefits relative to mainland citizens. Thousands of Puerto Ricans serve in the U.S. military but cannot vote for their commander in chief. (ontinueReading