Budget & Taxes

HB 97 appropriates $15 million annually for fiscal years 2026 and 2027 from the General Fund to the Department of Environmental Services. This funding supports approved wastewater infrastructure projects under state law, directly benefiting local wastewater systems and communities requiring upgrades. The money is nonlapsing, meaning unused funds carry over to future years, and must be used for projects approved by June 30, 2026. The bill takes effect July 1, 2025, with no new state positions created.

HB 197 requires the state to pay 7.5% of retirement contributions for group I teachers and group II members (including local police and firefighters) employed by cities, towns, and other local governments. This shifts the payment responsibility from local employers to the state, beginning in fiscal year 2026. The bill directly affects local governments that fund these retirement contributions, reducing their costs by approximately $28 million annually starting in 2026. The state will cover this 7.5% share using General Fund resources, while local governments will see a corresponding decrease in their retirement-related expenses.