Bonding would change all of that. The economists project Florida has the capacity to borrow more than $2.5 billion in the next budget year, although that is a very unlikely scenario.
But in this year’s budget, lawmakers did agree to borrow $275 million, the first PECO bonds since 2011, resulting in a $625 million PECO program when supplemented with cash.
Florida has a history of major PECO bonds, reaching a peak of $1.4 billion in borrowing during the 2006-2007 budget year. That changed with the election of Gov. Rick Scott in 2010, as Scott aggressively looked to limit state borrowing, resulting in a major drop in state debt. That drop was aided by historically low interest rates that allowed the state to refinance much of its debt at a lower cost.
But as lawmakers begin crafting a new state budget in the coming weeks, House Speaker Richard Corcoran, R-Land O’ Lakes, has voiced opposition to new PECO bonding, while Senate President Joe Negron, R-Stuart, said he is open to a “reasonable” amount of bonding.
