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 replaces the term "formed" with "created" in the context of COGs and establishes that for fiscal years ending June 30, 2024, and thereafter, a total of $7 million will be distributed annually to each COG. The distribution will include a base payment and a per capita payment based on the most recent federal decennial census data. Notably, the per capita payment will now be adjusted to reflect any increases in the consumer price index (CPI) for urban consumers over the preceding twelve months, which may result in larger grants for COGs with higher populations.

Additionally, the bill mandates that the distribution formula be reviewed and updated annually, rather than every five years as previously required. This change aims to ensure that the funding formula remains relevant and responsive to economic conditions. The overall fiscal impact of the bill is expected to be neutral, as the Office of Policy and Management has the necessary resources to implement these changes without incurring additional costs. The bill is set to take effect on July 1, 2025.