The bill amends Section 215.98 of the Florida Statutes to enhance the state's fiscal responsibility regarding debt management. It introduces a new requirement for the annual debt affordability report prepared by the Division of Bond Finance, which will now include a description of strategies for retiring outstanding state debt, the amount of debt retired, and the associated debt service savings. Additionally, the report will provide a recommendation on whether to continue the newly established Debt Reduction Program, which aims to reduce the state's tax-supported debt by accelerating the retirement of bonds prior to maturity.

The bill also creates the Debt Reduction Program within the State Board of Administration, allowing the Division of Bond Finance to utilize transferred funds to redeem or extinguish outstanding state bonds, excluding those from the Department of Transportation or the Florida Turnpike Enterprise. The Chief Financial Officer is mandated to transfer $250 million from the General Revenue Fund to the State Board of Administration for this program each fiscal year, with any unspent funds reverting back to the General Revenue Fund at the end of the fiscal year. The act is set to take effect on July 1, 2025.

Statutes affected:
H 5017 Filed: 215.98
H 5017 er: 215.98