AN ACT ADJUSTING THE BUDGET RESERVE FUND CAP AND DEPOSITING CERTAIN AMOUNTS IN A MUNICIPAL INFRASTRUCTURE RENOVATION FUND DEDICATED TO CERTAIN PURPOSES.

HB 6805 adjusts the state's Budget Reserve Fund cap from 18% to 15% of the general fund, redirecting the next 3% (between 15% and 18%) into a new Municipal Infrastructure Renovation Fund. This fund is dedicated to municipal capital projects requiring local contributions and specific one-time expenses, such as pension payments, early retirement incentives, professional development, and technology upgrades. The bill directly affects municipalities by providing them with additional dedicated funding for infrastructure and non-recurring costs. It creates a concrete policy change in how state budget surpluses are allocated, without altering existing tax rates or creating new state programs.