Researcher: JS Page 1 3/25/25 OLR Bill Analysis SB 1186 AN ACT CONCERNING THE REGIONAL PLANNING INCENTIVE ACCOUNT DISTRIBUTION FORMULA. SUMMARY This bill adjusts the calculation for regional service grants, tying one component of it to any increases in the consumer price index. Under existing law, unchanged by the bill, the Office of Policy and Management secretary must annually distribute $7 million to the regional councils of governments (COGs) from the regional planning incentive account (see BACKGROUND). The per-COG grant formula, which the secretary sets in consultation with the COGs, must include a (1) base amount and (2) per capita amount, based on population data outlined in the most recent decennial census. Under the bill, the per capita amount must be adjusted to reflect any increase in the consumer price index (CPI) for all urban consumers during the preceding 12 months. When the per capita amount (but not the total distribution amount of $7 million) is adjusted based on CPI, the bill shifts these grant amounts to COGs with higher populations, requiring a decrease in the base amount (which is the same across all COGs). The bill additionally requires that the formula be reviewed and updated annually, rather than every five years as current law requires. EFFECTIVE DATE: July 1, 2025 BACKGROUND Regional Planning Incentive Account The regional planning incentive account is a separate, nonlapsing General Fund account funded by 6.7% of the revenue generated by the room occupancy tax and 10.7% of the revenue generated by the rental 2025SB-01186-R000201-BA.DOCX Researcher: JS Page 2 3/25/25 car tax (CGS ยง 12-411(1)(J)). COMMITTEE ACTION Planning and Development Committee Joint Favorable Yea 20 Nay 0 (03/07/2025)