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

Bill S 501 requires New Jersey municipalities and school districts to annually report the amount paid to retired employees for unused sick leave (accumulated absences). The state would then reduce the following year's state aid - such as property tax relief or school funding - by that exact amount. This applies to both municipal aid programs and school district state aid, as identified in annual audits. The policy aims to prevent using state funds to cover retirement costs for unused leave accrued during employment.