Florida’s Remarkable Debt Reduction Under DeSantis
Florida Governor Ron DeSantis announced a major achievement: the state has paid off nearly half of its historical debt accumulated over the last 180 years in just five years. This significant reduction totals $7.3 billion since he took office in 2019. DeSantis emphasized the importance of this achievement for taxpayers, highlighting that Florida now boasts the lowest per capita debt in the nation.
During a budget signing event, DeSantis stated, “If you take all of the debt the state accumulated over 180 years — just since I’ve been governor, we will have retired 50% of the state’s total historical debt.” The governor noted that Florida’s tax-supported debt has plummeted from approximately $13.9 billion in 2019 to below $6.6 billion today, reflecting a stark contrast to trends seen in many other states.
The aggressive strategy behind this debt reduction involves accelerating the payoff process of legacy bonds. DeSantis explained, “We’ll go in, we’ll buy the bonds at a discount. We’ll retire [them], we save a lot of money on interest.” This approach not only alleviates future budget pressures but also shields the state from the impacts of rising interest rates and economic downturns.
Florida’s per capita debt stands at about $450, compared to a staggering $120,000 per person in federal debt for the average American. This comparison underscores the state’s unique position among its peers—it actively reduces debt without imposing additional burdens on its residents.
The reduction in debt has been supported by consistent data from the Florida Division of Bond Finance, which has reported continuous decreases in state obligations since 2020. With annual debt repayment targets consistently exceeded, the state has saved tens of millions in interest expenses each year.
In addition to debt reduction, Florida has significantly bolstered its Budget Stabilization Fund, also known as the “rainy day” fund, which has surged from $1.6 billion in 2019 to its maximum capacity of $4.9 billion today. This fiscal discipline is reflected in the recently signed 2025-2026 state budget, totaling $117.4 billion and maintaining a focus on providing broad services while avoiding new borrowing.
“Once again, Florida is spending less than the previous year,” remarked DeSantis. The new budget indicates anticipated tax savings of $2 billion for residents, through various forms of relief including permanent exemptions and tax breaks for veterans and small businesses.
Line-item highlights reveal significant investments:
- $15.9 billion for K-12 education, including funds for teacher raises and school safety
- $1.4 billion dedicated to Everglades restoration and clean water efforts
- $4 billion earmarked for infrastructure improvements
- $840 million specifically allocated for early debt payoff
Florida’s overall economic landscape supports this fiscal strategy. The state consistently ranks high in business growth, job creation, and population increase. Recent U.S. Census Bureau data shows that Florida welcomed nearly 300,000 new residents in 2023, marking the highest net migration in the country.
Remarkably, this debt reduction did not come at the cost of raising taxes or relying on federal aid. Instead, increased population and a stable business environment have led to higher revenue, allowing the state to maintain sound fiscal practices without further burdening its citizens.
For businesses, this creates a climate of confidence and potential long-term savings. Florida’s AAA credit rating from major financial agencies allows it to secure favorable borrowing rates when issuing bonds for infrastructure projects. However, the need for new issuances is diminished due to ongoing budget surpluses and a pay-as-you-go spending approach.
DeSantis also underscored the significance of reducing debt for future residents, stating that it lightens the long-term tax load on younger Floridians. This proactive financial management helps ensure the state remains resilient in times of economic crisis or natural disasters, avoiding reactive borrowing.
Investments in public safety and law enforcement accompany the state’s debt reduction efforts. The budget allocates $20 million for recruiting and retention bonuses for law enforcement personnel while increasing salaries for officers.
Environmental projects continue to receive strong backing as well, with funding directed towards the Everglades and other critical areas vital for Florida’s tourism and agriculture industries.
DeSantis’ administration’s strategy stands in stark contrast to federal fiscal policies, where the national debt continues to spiral. “I think your share as a Florida resident for our state’s debt is about 450 bucks,” he noted, emphasizing the financial difference. “I think as a U.S. citizen, your share of that debt’s about $120,000.”
This record of rising reserves, reduced debt, and balanced budgets distinguishes Florida as a rarity in today’s fiscal landscape. As other states grapple with deficits and the need for borrowing, Florida serves as a model for disciplined budgeting and growth-driven policy.
Looking ahead, state officials plan to continue this trajectory of fiscal responsibility as the new fiscal year begins. Investments in essential areas like education, infrastructure, and clean energy will be maintained, thanks in large part to the debt management already accomplished. With these foundations in place, Florida is on a path where it may soon operate with minimal debt—an increasingly uncommon status among U.S. states.
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