Bill > SF853

This bill establishes a new debt limit framework for the state of Minnesota, amending existing statutes to create more specific guidelines for tracking and managing state debt. The bill requires the commissioner to prepare debt capacity forecasts twice yearly, detailing the state's indebtedness, including bonds, notes, and long-term general obligation debt. Starting July 1, 2025, these forecasts must include a new debt limit calculation that restricts new debt to ensure debt service payments do not exceed three percent of estimated nondedicated general fund revenues. The bill defines "debt" comprehensively, covering general obligation bonds, appropriation bonds, agency bonds, certificates of participation, and lease-purchase financing. Additionally, the bill places a more restrictive 0.6 percent limit on certain types of debt payable from general fund revenues. Importantly, these limits are designed to delay, but not cancel, debt issuance if forecasts indicate potential exceedance, providing a flexible mechanism for managing the state's financial obligations while maintaining fiscal responsibility.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0853&ssn=0&y=2025