Americans for Prosperity-Minnesota Supports Bipartisan Bill Establishing Debt Limit

ST. PAUL, MINN - Americans for Prosperity-Minnesota announced its support of Representative Bob Vogel's bipartisan bill, HF 2970, establishing a cap for debt payments related to state capital investment borrowing. The bill will set limits on state debt payments, ensuring that future Minnesotans are not saddled with crippling debt down the road.

AFP-Minnesota State Director Jason Flohrs had the following to say:

"Minnesota is constitutionally required to have a balanced budget, yet we have more than $11 billion in state bonds outstanding or authorized. That is nearly 2.5 times as much debt as Minnesota had in 2006, when the state had only $4.6 billion of obligations. Even more concerning, debt service on these bonds is one of the fastest growing portions of the state budget, crowding out other priorities like education, water infrastructure improvements and transportation projects."

In the current biennium alone, Minnesota is projected to pay over $1.5 billion in debt service payments. Rep. Vogel's bill would complement existing debt guidelines, while also focusing on the state’s year to year ability to pay its other obligations. The bill would cap state payments on borrowing at a fixed percentage of the state’s General Fund revenue, ensuring Minnesota's creditworthiness and ability to borrow for future generations.

Flohrs adds, "The current rate of growth in debt is unsustainable and threatening to overburden the Minnesota taxpayers; legislators need to remember that this is taxpayer money and be prudent in its spending. If not, future Minnesotans will be left on the hook for today's wasteful spending decisions. Governments shouldn't borrow to their max just because they can. Families and businesses have to manage their debt responsibly, and government should be held to the same standard."