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 report annually how much they pay employees for unused sick leave or vacation time upon retirement. The state will then reduce the following year's state aid - such as property tax relief funds - by that exact amount for each entity. It directly affects local governments and school districts that provide retirement benefits for accumulated absences. The policy change ensures state aid isn't used to cover these retirement payments, shifting the cost to the local entity's budget.