Requires the Legislature to provide state funding to reimburse cities, counties, towns, and/or villages for the costs associated with expendi- tures made as a requirement for any special or general law mandating a new program or increasing the level of service of an existing program by a local government. The proposal also requires the Legislature to establish procedures for the allocation of funds among the local govern- ments. Local governments' flexibility to receive federal reimbursement or matching funds through participation is preserved with the Legislature providing state funding in support of these programs receiving federal funding as it determines.