Florida’s debt load will fall next year for the second time in two years, a $2 billion drop since 2010 that will position the state to go below its debt target for the first time since 2008, reports the News Service of Florida.
Division of Bond Finance director Ben Watkins told the governor and Cabinet Tuesday that the state is slated to go below its 7 percent debt cap, thanks in large part to reductions in bonding programs including Florida Forever and Public Educaton Capital Outlay construction projects.
Florida’s total direct debt, which is paid for with taxes, is $26.2 billion. Combined with other debt not directly associated with state tax revenue, a list that includes Citizens Property Insurance Corp. and the Florida Hurricane Catastrophe Fund, the state’s debt load is $43.7 billion. Florida ranks favorably with 10 other large states, ranking eighth in the amount of debt and pension obligations.