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 employed to retire outstanding state debt, the amount of debt retired, and recommendations on the continuation of the newly created Debt Reduction Program. This program aims to reduce the state's tax-supported debt by accelerating the retirement of bonds prior to maturity, utilizing funds transferred from the General Revenue Fund.

Additionally, the Chief Financial Officer is mandated to transfer $250 million to the State Board of Administration for the Debt Reduction Program each fiscal year, starting from the 2025-2026 fiscal year, with any unspent funds reverting to the General Revenue Fund by June 30 of each year. The bill emphasizes the importance of maintaining the state's credit standing and sets forth guidelines for the issuance of additional state debt, ensuring that it does not exceed certain debt service ratios unless deemed necessary for critical emergencies. The act is set to take effect on July 1, 2025.

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