The proposed bill, General Assembly Proposed Bill No. 6805, seeks to adjust the cap on the Budget Reserve Fund to fifteen percent. Additionally, it stipulates that any funds exceeding this cap, specifically the amounts between fifteen percent and eighteen percent, will be redirected to a newly established Municipal Infrastructure Renovation Fund. This fund is intended to support municipal capital expenditures that require local contributions, as well as one-time non-reoccurring expenses such as additional pension payments, early retirement incentives, professional development opportunities, and technology improvements.

The bill aims to enhance municipal infrastructure by ensuring that a portion of the state's financial reserves is allocated for specific local needs, thereby promoting fiscal responsibility while addressing critical municipal projects. The adjustments to the Budget Reserve Fund cap and the creation of the Municipal Infrastructure Renovation Fund represent a strategic shift in how surplus funds are utilized, focusing on immediate and impactful local government expenditures.