Published: Oct 24, 2012 7:32 AM EDT

TALLAHASSEE, Fla. (AP) - Florida's debt has dropped for the second year in a row to $26.2 billion due largely to falling utility tax revenues. Bond Finance Director Ben Watkins on Tuesday said the state, therefore, has been unable to float bond issues with those funds that are dedicated to constructing and repairing school, college and university buildings. Watkins provided the update to Gov. Rick Scott and the Florida Cabinet. He said the state's debt dropped $1.5 billion in the budget year ending June 30 and $500 million in the previous budget year. That was the first time the debt level had dropped since 1990. Another factor contributing to the falling debt has been the state's ability to refinance bonds at lower interest rates, which are being held down by federal monetary policy.