Senate Bill 694 aims to provide additional financial support to municipalities with populations exceeding 50,000 by introducing supplemental county and municipal aid payments starting in 2026. The bill allocates a total of $16,257,500, which will be distributed proportionally among eligible cities, villages, and towns. Furthermore, the bill stipulates that these additional payments will increase annually based on the percentage change in sales and use tax revenue from the previous fiscal year. It also specifies that these supplemental payments will not be considered when determining eligibility for the expenditure restraint incentive program, which currently requires municipalities to maintain certain budgetary constraints.

In addition to the financial provisions, the bill establishes a Shared Revenue Advisory Council within the Department of Revenue, which will convene after each federal decennial census. This council will consist of various appointed members, including state legislators and representatives from municipal associations. Its responsibilities include studying revenue and expenditure variations among municipalities, evaluating existing aid distribution formulas, and making recommendations for future aid distributions. The council is prohibited from recommending any changes that would decrease the total aid received by any municipality, ensuring that the financial support remains equitable and responsive to population and property value changes.

Statutes affected:
Bill Text: 79.037(3), 79.037