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 mandates the Chief Financial Officer to transfer $250 million from the General Revenue Fund to the State Board of Administration for the Debt Reduction Program starting in the 2025-2026 fiscal year. Any unspent funds from this transfer will revert to the General Revenue Fund by June 30 of each fiscal year. The overall goal of these changes is to improve the state's ability to manage its debt effectively while ensuring that fiscal prudence is maintained in the authorization and issuance of additional state debt. The act is set to take effect on July 1, 2025.

Statutes affected:
H 5017 Filed: 215.98