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 retiring employees for unused sick leave. The State Treasurer must then reduce the following year's state aid payments to these entities by that exact amount: for municipalities, this applies to Consolidated Municipal Property Tax Relief Aid, Energy Tax Receipts Property Tax Relief Aid, Extraordinary Aid, or Transitional Aid to Localities; for school districts, it reduces state school aid based on annual audit data. The policy directly affects local governments that provide retirement payments for accrued sick leave, ensuring state aid does not cover these costs. It creates a straightforward mechanism where reported unused sick leave payments automatically lower subsequent state funding.