NJ S116

Municipalities must annually report to the Director of the Division of Local Government Services the amount paid to employees for accumulated absences (sick leave) upon retirement in the previous budget year.

State aid to municipalities will be reduced by the amount paid for accumulated absences, affecting Consolidated Municipal Property Tax Relief Aid, Energy Tax Receipts Property Tax Relief Aid, Extraordinary Aid, or Transitional Aid to Localities.

School districts and county vocational school districts will have their State school aid reduced by the amount paid to employees for accumulated absences upon retirement, as identified in their annual audits.

The bill aims to ensure municipalities and school districts do not use State aid to fund payments for unused sick leave accumulated over employees' careers, shifting those costs to local property taxpayers.