HF699

This bill in Minnesota proposes amendments related to the state's management of debt through setting a specified debt limit. It amends the existing statute to require the state's commissioner to prepare a debt capacity forecast twice a year. This forecast will detail the state’s current and projected debt levels over a span of upcoming fiscal years.

The main change introduced by the bill is the establishment of a clear debt limit, meaning the maximum allowable amount of new state debt, which is payable from the general fund's non-dedicated revenues. Specifically, the total payment due on all outstanding debt shouldn't exceed three percent of these revenues, while the payment for certain types of debt (like appropriation bonds and lease-purchase financing) shouldn't exceed 0.6 percent of these revenues.

These debt limits serve to control the issuance of new debt, ensuring it doesn't surpass these percentages unless financial forecasts indicate otherwise. This measure is intended to help maintain the state’s financial health and ensure prudent management of debt.