Senate Bill 707 proposes to replace the existing expenditure restraint incentive program with a new municipality payment program, which will take effect in 2027. The bill terminates payments under the expenditure restraint incentive program in 2026 and establishes a new payment structure for municipalities that received payments under the previous program in 2024, 2025, or 2026. Each municipality's payment will be equal to the highest amount it received during that three-year period. The bill includes amendments to various sections of the statutes, specifically changing references from the "expenditure restraint incentive" to the "municipality payment" program and updating the relevant sections to reflect this change.

Key amendments include the deletion of references to the expenditure restraint incentive program in sections 20.835, 25.491, 79.015, and 79.02, while new sections 79.05 (8) and 79.06 are created to outline the new payment program. The new program will ensure that municipalities receive consistent payments based on their previous highest amounts, thereby providing financial stability. The effective dates for these changes are staggered, with some provisions taking effect on July 1, 2026, and others on July 1, 2027.

Statutes affected:
Bill Text: 20.835(1)(s), 20.835, 25.491(3), 25.491, 79.015, 79.02(2)(b), 79.02, 79.02(3)