Debt Restructuring-The bill authorizes the restructuring of principal payments in fiscal year 2010-11 on the state’s general obligation bonds. These principal repayments will be paid in future years. Since the state is required to make debt service payments by March 15th. The bill must be enacted by February 25th. To allow time to sell the refinancing bonds. This provision will reduce debt service costs by $165 million in fiscal year 2010-11. The savings will help address one-time costs to comply with the Injured Patients and Families Compensation Fund state Supreme Court decision and make payments under the Minnesota-Wisconsin tax reciprocity program.
Due to the absence of the 14 Senate Democrats who fled the state to prevent a vote on the budget repair bill, the taxpayers of WI are now responsible for that $165 million.
