Senate Bill No. 1186 proposes changes to the distribution formula for the Regional Planning Incentive Account, which allocates funds to regional councils of governments (COGs). The bill repeals subsection (d) of section 4-66k and replaces it with new provisions effective July 1, 2025. The new formula will maintain an annual distribution of $7 million to COGs but will adjust the per capita payment based on any increases in the consumer price index (CPI) for urban consumers over the preceding twelve months. This adjustment aims to ensure that COGs with higher populations receive a larger share of the funds, while the base payment amount remains consistent across all councils.

Additionally, the bill mandates that the distribution formula be reviewed and updated annually, rather than every five years as previously required. This change is intended to provide a more responsive and equitable allocation of resources to regional councils, allowing for adjustments that reflect current economic conditions. The bill does not have a fiscal impact on the state or municipalities, as the Office of Policy and Management has the necessary resources to implement these changes.