Permits municipalities and counties to issue bonds to fund buy-out of accumulated leave time in order to reduce future terminal leave expenses.

This bill allows New Jersey municipalities and counties to issue bonds to pay for buying out unused vacation and sick leave (accrued leave time) for all current employees. It aims to avoid higher future costs by locking in current lower borrowing rates instead of paying employees at their higher final salaries when they retire or leave. The local government must confirm that the bond cost is cheaper than the expected future expense of converting accrued leave to cash. This applies only to leave that would otherwise be paid out upon retirement or termination under existing contracts or policies.