relative to payment by the state of a portion of retirement system contributions of political subdivision employers.

HB 197 requires the state to pay 7.5% of retirement contributions for group I teachers and group II members (including local police and firefighters) employed by cities, towns, and other local governments. This shifts the payment responsibility from local employers to the state, beginning in fiscal year 2026. The bill directly affects local governments that fund these retirement contributions, reducing their costs by approximately $28 million annually starting in 2026. The state will cover this 7.5% share using General Fund resources, while local governments will see a corresponding decrease in their retirement-related expenses.