Bill > S1906

This bill creates a new Debt Reduction Program within the State Board of Administration aimed at reducing Florida's state tax-supported debt by allowing the Division of Bond Finance to accelerate bond retirement. The program requires the Chief Financial Officer to transfer $250 million annually from the General Revenue Fund to the State Board of Administration, starting in the 2025-2026 fiscal year, with any unused funds reverting back to the General Revenue Fund. The bill also amends existing state debt law by modifying the annual debt affordability report to include new reporting requirements, such as strategies for retiring outstanding state debt, the amount of debt retired, and details about debt service savings. The legislation emphasizes the state's commitment to fiscal responsibility by maintaining a target debt ratio of 6% and providing a mechanism to systematically reduce state debt. The goal is to help Florida maintain its excellent credit standing by prudently managing its financial obligations, with the Division of Bond Finance empowered to redeem, defease, purchase, or extinguish outstanding state bonds (excluding transportation-related bonds) in order to achieve debt reduction and generate debt service savings.

https://www.flsenate.gov/Session/Bill/2025/1906