Jacob Ogles
The Senate will consider two bills in the coming days on reducing state debt.
The legislation, introduced Thursday, would specifically direct up to $1 billion each year to pay down debt and increase Florida’s budget stabilization fund.
Sen. Jason Brodeur, a Lake Mary Republican, filed a bill (SB 1906) that would create a debt reduction program and require the Chief Financial Officer to transfer $250 million each year to the effort.
Meanwhile, Sen. Ed Hooper, a Clearwater Republican, filed a joint resolution (SB 1908) that would mandate a transfer of up to $750 million to try to get the budget stabilization fund to 25% of all revenue collections each year. Voters would need to approve that measure in an upcoming election.
Senate President Ben Albritton, a Wauchula Republican, said the Legislature has an opportunity to make a lasting impact on state debt by considering the bills.
“This year, we’re fully funding the current budget stabilization fund. That, in itself, is a big deal,” Albritton said. “And through the joint resolution we will consider this week we can give voters the opportunity to add another layer of rainy-day reserves.”
The Senate met on Thursday morning to waive rules and allow the bills to be entered well after the start of the Legislative Session. Senators also agreed with a House resolution (HB 1635) extending the Session to June 18 at the latest. But Albritton said he expects negotiations to be done sooner than that.
“So far in the individual budget silos, a lot of progress has been made over the last couple days,” he said. “When all is said and done, on the 16th, I think we’ll have a balanced budget our constituents will be proud of. We are reducing spending.”
Brodeur’s bill would create a Debt Reduction Program within the Board of Administration and be dedicated to “reducing the state’s tax-supported debt by accelerating the retirement of bonds prior to maturity.”
It would also require the CFO to transfer $250 million from the General Revenue Fund on July 1, starting this year. The money goes to the Board of Administration for debt reduction. Any money unused for that would return to the General Fund.
Hooper’s bill, meanwhile, would set up a system for increasing the principal balance for the state’s budget stabilization fund. Assuming voters approve, it will call for the Legislature to transfer the amount needed to bring the fund to 25% of the state revenue collections, up to $750 million.
If the fund gets within 20% of collections, the legislation as drafted would allow a transfer of up to 5% to cover critical state needs, so long as two-thirds of the Legislature supports the change.
