Bill > H5017

This bill establishes a new Debt Reduction Program within the State Board of Administration aimed at reducing Florida's state tax-supported debt by providing a mechanism to accelerate bond retirement. The legislation requires the Division of Bond Finance to prepare an annual debt affordability report that now includes additional details about debt retirement strategies, including the amount of state debt retired and any associated savings. Starting in the 2025-2026 fiscal year, the Chief Financial Officer will transfer $250 million annually from the General Revenue Fund to the State Board of Administration specifically for this debt reduction effort. The Division of Bond Finance will use these funds to redeem, defease, purchase, or otherwise extinguish outstanding state bonds (excluding transportation-related bonds), with the goal of realizing debt service savings and reducing the state's overall debt burden. Any unexpended funds will revert back to the General Revenue Fund at the end of each fiscal year. The bill maintains existing policy goals of exercising fiscal responsibility and maintaining the state's excellent credit standing, while adding a structured approach to proactively managing and reducing state debt. The new provisions will take effect on July 1, 2025.

Budget and Finance

https://www.flsenate.gov/Session/Bill/2025/5017