Purpose of the Bill

This Minnesota legislative bill aims to improve the management and forecasting of state debt and bonding activities. The bill seeks to ensure that the Governor and legislature have clear, updated information on the state’s debt capacity and bonding situations.

Main Provisions

• Debt Capacity Forecast: The bill requires the commissioner to prepare and deliver a debt capacity forecast every February and November. This forecast must include comprehensive details about the state's existing debts, including bonds, notes, and other forms of long-term general obligation indebtedness.

• Bonding Bill Forecast: The bill introduces a requirement for a bonding bill forecast. This report will indicate how much the state can borrow through general obligation bonds without having the debt service exceed 2.5% of the total nondedicated general fund revenues. This forecast must be completed by or before November 1 of each year.

Significant Changes to Existing Law

• The bill amends the existing Minnesota Statutes to formalize the preparation and delivery process of both the debt capacity and bonding bill forecasts.
• It specifies a new requirement for a bonding bill forecast aimed at keeping the state’s debt service within a specified percentage of the general fund revenues.

Relevant Terms

debt capacity forecast, bonding bill forecast, general obligation bonds, debt service, nondedicated general fund revenues, long-term indebtedness.