The bill amends Section 215.98 of the Florida Statutes to enhance the state's fiscal responsibility regarding debt management. It requires the Division of Bond Finance to prepare an annual debt affordability report that now includes additional information on strategies for retiring state debt, the amount of debt retired, and the associated savings. This report aims to assist the Legislature in evaluating and prioritizing capital projects that may require additional state debt. The bill also establishes the Debt Reduction Program within the State Board of Administration, which is tasked with reducing tax-supported debt by accelerating the retirement of bonds prior to maturity.

To support this initiative, the bill 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 will revert to the General Revenue Fund at the end of each fiscal year. The bill emphasizes the importance of maintaining the state's credit standing and sets forth a framework for responsible debt management while providing appropriations for the new program. The act is set to take effect on July 1, 2025.

Statutes affected:
S 1906 Filed: 215.98