On Wednesday, Governor Ron DeSantis announced the early paydown of $400 million of the state’s debt through the Debt Reduction Program, which was championed by the Governor through the Framework for Freedom Budget. The program serves to reduce state debt by accelerating the payoff of bonds prior to maturity, avoiding subsequent interest costs. The early payoff announced today will save Florida taxpayers nearly $34 million.
“While Washington has governed irresponsibly and ballooned the national debt, the Free State of Florida is providing a blueprint for fiscal responsibility,” said Governor Ron DeSantis. “We put Floridians front and center in every decision we make and are proud to continue saving them money through smart fiscal policy.”
“Governor DeSantis championed the debt reduction program through the legislative process, and the Division is proud to have delivered on his vision, resulting in an expedited reduction in state debt at a savings to taxpayers,” said Division of Bond Finance Director Ben Watkins. “I look forward to working with the Governor to explore additional opportunities to leverage Florida’s solid financial footing and further reduce the state’s financial obligations.”
When accounting for today’s announcement, Florida has now paid down approximately $5 billion in state debt since Governor DeSantis took office, with additional payoffs expected over the fiscal year. During this same timeframe, the national debt has increased by more than $10 trillion as a result of excessive spending.
The Framework for Freedom Budget established the Debt Reduction Program within the Division of Bond Finance. The Division completed two transactions over the past week to support the retirement of outstanding taxable Public Education Capital Outlay (PECO) and State Revolving Fund (SRF) bonds. The transactions were effectuated by utilizing the $200 million in appropriated funds, along with additional available funding, to pay down $400 million in state debt prior to maturity, generating nearly $34 million in savings to taxpayers.