SAN JUAN, Puerto Rico (AP)

Puerto Rico's new governor was sworn in Friday, inheriting an island government that is battling a recession, a soaring murder rate and a deficit of more than $1 billion.

Luis Fortuno, who defeated an incumbent tainted by federal corruption charges in November, took the oath of office at the US Caribbean territory's Capitol. Guests included Dominican President, Leonel Fernandez, actress Jennifer Lopez and reggaeton star Daddy Yankee.

private-sector jobs

Fortuno has promised to reduce the tax rate, create thousands of private-sector jobs and boost community policing on an island that reported more than 800 killings last year, for the first time since 1996.

But the economy will take centrestage. His advisory committee has warned the territory is on such shaky ground that it might not have money to pay public employees in the next three months. In August, the government requested a $500 million credit line from the state-owned bank, to pay 120,000 workers.

"It's time to control government spending," Fortuno said in his inaugural speech. "We have the innate capacity to overcome adversity."

He asked for solidarity and warned that sacrifices would have to be made.

Fortuno, 48, has been serving as the island's nonvoting delegate to the US Congress. He belongs to the party that wants Puerto Rico to become a US state.

President-elect Barack Obama promised to resolve the island's status in the next four years, in a message read at the inauguration.

"Self-determination is a basic right to be addressed no matter how difficult," the statement said.

Fortuno ousted one-term governor Anibal Acevedo Vila, who is awaiting trial for allegedly violating campaign finance laws. Many of the thousands of people in attendance booed Acevedo when he arrived at the inauguration, yelling "Crook!" and shouting for his departure.