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 under the new program will be equal to the highest payment it received during that three-year period.

The bill includes several amendments to existing statutes, specifically changing references from the "expenditure restraint incentive" to the "municipality payment" program in sections 20.835, 25.491, and 79.015. Additionally, it creates a new section, 79.06, detailing the municipality payment program and specifies that no payments will be made under the previous section 79.05 starting in 2027. The effective dates for these changes vary, with some provisions taking effect on July 1, 2027, and others on July 1, 2026.

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)