Requires State aid reduction to municipalities and school districts by amount of accumulated absences paid to employees upon their retirement.

This bill requires municipalities and school districts to annually report the amount paid to employees for unused sick leave upon retirement. The state treasurer will then reduce the following year's state aid (including property tax relief and other municipal aid programs) by that exact amount. Similarly, school districts must have their state aid reduced by the same retirement leave payments identified in their annual audit. The policy directly affects local governments by linking their retirement benefit costs to state funding they receive.