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Florida Has Billions in Bonding Capacity to Combat Climate Risks

  • Benchmark debt ratio has been below 6% target for 8 years
  • More than 80% of all state debt refinanced for rate savings
A dilapidated dock ahead of Hurricane Dorian in Titusville, Florida in 2019.

A dilapidated dock ahead of Hurricane Dorian in Titusville, Florida in 2019.

Photographer: Zack Wittman/Bloomberg

To maintain top credit ratings, Florida must focus on environmental concerns like vulnerability to hurricanes, flooding and rising sea levels, yet a solid economic recovery will help sustain the state’s triple-A status, according to the Division of Bond Finance’s new debt affordability analysis

The state benchmark debt ratio, or debt service as a percentage of the revenue available to pay it, declined to 4.30% from 5.49% in fiscal 2021, “largely a result of the significant rebound in revenues generated by the state’s strong economic recovery,” according to the report. The state has a target for the ratio of 6% and a limit of 7%. The ratio has remained below the 6% policy target for eight consecutive years, the report said.