Bill > HF699

This bill establishes a new debt limit framework for the state of Minnesota, focusing on managing state debt payable from nondedicated general fund revenues. Beginning July 1, 2025, the state's commissioner will be required to prepare debt capacity forecasts in February and November that include a new debt limit calculation. The bill defines "debt" to include general obligation bonds, appropriation bonds, agency appropriation bonds, certificates of participation, and lease-purchase financing. Specifically, the bill sets two key debt limit thresholds: first, total debt payments must not exceed 3% of estimated nondedicated general fund revenues, and second, debt from certain financing mechanisms (like appropriation bonds and certificates of participation) must not exceed 0.6% of estimated nondedicated general fund revenues. These limits are meant to be guidelines that can delay the issuance of new debt if forecasts show the thresholds would be exceeded, but they do not automatically cancel previously authorized appropriations or require immediate reduction of existing debt. The goal is to provide a structured approach to managing the state's long-term financial obligations while maintaining fiscal flexibility.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0699&ssn=0&y=2025