1.1 A bill for an act
1.2 relating to capital investment; establishing a debt limit; amending Minnesota
1.3 Statutes 2024, section 16A.105.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2024, section 16A.105, is amended to read:
1.6 16A.105 DEBT CAPACITY FORECAST.
1.7 Subdivision 1.Forecast.In February and November of each year the commissioner
1.8shall prepare a debt capacity forecast to be delivered to the governor and legislature according
1.9to section 16A.103, subdivision 1. The debt capacity forecast must include statements of
1.10the indebtedness of the state for bonds, notes, and other forms of long-term general obligation
1.11indebtedness. The forecast must show the actual amount of the debt service for at least the
1.12past two completed fiscal years, and the estimated amount for the current fiscal year and
1.13the next six fiscal years, the debt authorized and unissued, and the borrowing capacity for
1.14the next six fiscal years. Beginning with forecasts prepared after July 1, 2025, the forecast
1.15must include the debt limit determined under subdivision 2.
1.16 Subd. 2.Debt limit.(a) For the purposes of this subdivision, "debt" means state debt
1.17payable from nondedicated state general fund revenues, including:
1.18 (1) state general obligation bonds payable from the general fund;
1.19 (2) state appropriation bonds;
1.20 (3) agency appropriation bonds payable from a statutory appropriation from the general
1.21fund or other debt issued by the state, a state agency, or the University of Minnesota, payable
1.22from a statutory appropriation of general fund money;
1Section 1.
25-01442 as introduced12/16/24 REVISOR JSK/NS
SENATE
STATE OF MINNESOTA
S.F. No. 853NINETY-FOURTH SESSION
(SENATE AUTHORS: PRATT and Housley)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/30/2025
Referred to Finance 2.1 (4) state certificates of participation; and
2.2 (5) state lease-purchase financing for acquisition of real estate or equipment payable
2.3from the general fund.
2.4 (b) The debt limit established in this subdivision applies in addition to any other guideline
2.5adopted or used by the commissioner to prudently manage debt in the state's best interests.
2.6 (c) For each forecast under subdivision 1, the commissioner shall determine the maximum
2.7amount of new debt that may be issued so that the payment due on all outstanding debt is
2.8no more than three percent of the estimated nondedicated general fund revenue received by
2.9the state for the same time periods.
2.10 (d) In addition, for each forecast under subdivision 1, the commissioner shall determine
2.11the maximum amount of debt payable from nondedicated state general fund revenues under
2.12paragraph (a), clauses (2) to (5), that may be issued so that the payment due is no more than
2.130.6 percent of the estimated nondedicated general fund revenue received by the state for
2.14the same time periods.
2.15 (e) The debt limits in this subdivision may only be used to delay issuance of debt
2.16authorized in a law enacted after the forecast that indicates the limits will be exceeded and
2.17do not require either: (1) delay in the sale of or reduction in the amount of debt authorized
2.18before that forecast; or (2) cancellation of appropriations made before that forecast. The
2.19commissioner must delay issuance until a forecast indicates that the debt limits will not be
2.20exceeded with the issuance.
2.21 EFFECTIVE DATE.This section is effective July 1, 2025.
2Section 1.
25-01442 as introduced12/16/24 REVISOR JSK/NS