Minneslate Logo

SF3441 (Legislative Session 94 (2025-2026))

Bonding bill forecast to be prepared and delivered to the governor and the legislature requirement

Related bill: HF3177

AI Generated Summary

Purpose of the Bill

This bill requires the preparation and delivery of a detailed forecast regarding the state's bonding capacity. The purpose is to inform the governor and legislature about the state’s financial ability to issue and manage general obligation bonds.

Main Provisions

  • Debt Capacity Forecast: The commissioner must prepare and deliver a debt capacity forecast twice a year, in February and November. This forecast will include:

    • The state's indebtedness for bonds, notes, and other long-term obligations.
    • An analysis of debt service for the past two fiscal years and projections for the current year and the next six years.
    • Information on authorized but unissued debts and the borrowing capacity projected for the next six years.

  • Bonding Bill Forecast: Alongside the debt capacity forecast, a bonding bill forecast must be prepared that:

    • Determines the maximum amount of state general obligation bonds that can be issued and sold by November 1 each year.
    • Ensures that the debt service from these bonds does not exceed 2.5 percent of the state’s total nondedicated general fund revenues.

Significant Changes to Existing Law

  • This bill amends the existing statute to add a requirement for a bonding bill forecast. Previously, forecasts focused primarily on debt capacity without specifying the potential bond issuance limits related to general fund revenues.

Relevant Terms

  • Capital investment
  • Bonding bill
  • Debt capacity
  • General obligation bonds
  • Debt service
  • Fiscal year forecasting
  • Nondedicated general fund revenues

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 24, 2025SenateFloorActionIntroduction and first reading
April 24, 2025SenateFloorActionIntroduction and first reading
April 24, 2025SenateFloorActionReferred toCapital Investment

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new requirement for the forecast to include statements of indebtedness for bonds, notes, and other long-term obligations."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the requirements for preparing a debt capacity forecast under Minnesota Statutes section 16A.105.",
      "modified": [
        "Changes in the reporting schedule and requirements for the debt capacity forecast."
      ]
    },
    "citation": "16A.105",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The bill relates to section 16A.103 in terms of delivery requirements for forecasts.",
      "modified": [
        "Clarifies the delivery requirements for the debt capacity and bonding bill forecasts."
      ]
    },
    "citation": "16A.103",
    "subdivision": "subdivision 1"
  }
]

Sponsors