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--- version:Introduced+++ version:(document, no version)@@ -1,178 +1,15 @@-LEGISLATURE OF NEBRASKA-ONE HUNDRED NINTH LEGISLATURE-FIRST SESSION-LEGISLATIVE BILL 498+One Hundred Ninth Legislature - First Session - 2025+Introducer's Statement of Intent+LB498-Introduced by Murman, 38.-Read first time January 21, 2025+Chairperson: Senator Dave MurmanCommittee: Education-A BILL FOR AN ACT relating to the Tax Equity and Educational1-Opportunities Support Act; to amend sections 79-1006, 79-1022,2-79-1022.02, 79-1023, 79-1027, and 79-1031.01, Reissue Revised3-Statutes of Nebraska; to change provisions relating to foundation4-aid and certain certification dates; to harmonize provisions; to5-repeal the original sections; and to declare an emergency.6-Be it enacted by the people of the State of Nebraska,7-LB498-2025-LB498-2025--1--Section 1. Section 79-1006, Reissue Revised Statutes of Nebraska, is1-amended to read: 2-79-1006 (1) The For school fiscal year 2023-24 and each school3-fiscal year thereafter, the department shall determine the foundation aid4-to be paid to each school district in accordance with subsection (2) of5-this section. 6-(2)(a) For school fiscal years 2023-24 and 2024-25, the (2) The7-foundation aid to be paid to each school district in each school fiscal8-year shall equal (i) one thousand five hundred dollars multiplied by (ii)9-the number of formula students for such school district.10-(b) For school fiscal year 2025-26 and each school fiscal year11-thereafter, the foundation aid to be paid to each school district in each12-school fiscal year shall equal (i) the amount of foundation aid paid per13-formula student in the immediately preceding school fiscal year,14-increased by the percentage increase in the Consumer Price Index for All15-Urban Consumers published by the Federal Bureau of Labor Statistics for16-the previous calendar year, multiplied by (ii) the number of formula17-students for such school district. 18-(3) Twenty-four percent of the total amount of foundation aid paid19-each school fiscal year shall be paid from money appropriated from the20-Education Future Fund. 21-(4) For school fiscal years 2023-24 and 2024-25, one hundred percent22-of foundation aid shall be included as a formula resource pursuant to23-section 79-1017.01. For school fiscal year 2025-26 and each school fiscal24-year thereafter, sixty percent of foundation aid shall be included as a25-formula resource pursuant to section 79-1017.01. 26-Sec. 2. Section 79-1022, Reissue Revised Statutes of Nebraska, is27-amended to read: 28-79-1022 (1) On or before June 15, 2025 2023, and on or before March29-1 of each year thereafter, the department shall determine the amounts to30-be distributed to each local system for the ensuing school fiscal year31-LB498-2025-LB498-2025--2--pursuant to the Tax Equity and Educational Opportunities Support Act and1-shall certify the amounts to the Director of Administrative Services, the2-Auditor of Public Accounts, and each local system. On or before June 15,3-2025 2023, and on or before March 1 of each year thereafter, the4-department shall report the necessary funding level for the ensuing5-school fiscal year to the Governor, the Appropriations Committee of the6-Legislature, and the Education Committee of the Legislature. The report7-submitted to the committees of the Legislature shall be submitted8-electronically. Except as otherwise provided in this subsection,9-certified state aid amounts, including adjustments pursuant to section10-79-1065.02, shall be shown as budgeted non-property-tax receipts and11-deducted prior to calculating the property tax request in the local12-system's general fund budget statement as provided to the Auditor of13-Public Accounts pursuant to section 79-1024. 14-(2) Except as provided in this subsection, subsection (8) of section15-79-1016, and sections 79-1005, 79-1033, and 79-1065.02, the amounts16-certified pursuant to subsection (1) of this section shall be distributed17-in ten as nearly as possible equal payments on the last business day of18-each month beginning in September of each ensuing school fiscal year and19-ending in June of the following year, except that when a local system is20-to receive a monthly payment of less than one thousand dollars, such21-payment shall be one lump-sum payment on the last business day of22-December during the ensuing school fiscal year. 23-Sec. 3. Section 79-1022.02, Reissue Revised Statutes of Nebraska, is24-amended to read: 25-79-1022.02 Notwithstanding any other provision of law, any26-certification of state aid pursuant to section 79-1022, certification of27-budget authority pursuant to section 79-1023, and certification of28-applicable allowable reserve percentages pursuant to section 79-102729-completed prior to the effective date of this act June 1, 2023, for30-school fiscal year 2025-26 2023-24 are null and void.31-LB498-2025-LB498-2025--3--Sec. 4. Section 79-1023, Reissue Revised Statutes of Nebraska, is1-amended to read: 2-79-1023 (1) On or before June 15, 2025 2023, and on or before March3-1 of each year thereafter, the department shall determine and certify to4-each school district budget authority for the general fund budget of5-expenditures for the ensuing school fiscal year. 6-(2) Except as provided in sections 79-1028.01, 79-1029, 79-1030, and7-81-829.51, each school district shall have budget authority for the8-general fund budget of expenditures equal to the greater of (a) the9-general fund budget of expenditures for the immediately preceding school10-fiscal year minus exclusions pursuant to subsection (1) of section11-79-1028.01 for such school fiscal year with the difference increased by12-the basic allowable growth rate for the school fiscal year for which13-budget authority is being calculated, (b) the general fund budget of14-expenditures for the immediately preceding school fiscal year minus15-exclusions pursuant to subsection (1) of section 79-1028.01 for such16-school fiscal year with the difference increased by an amount equal to17-any student growth adjustment calculated for the school fiscal year for18-which budget authority is being calculated, or (c) one hundred ten19-percent of formula need for the school fiscal year for which budget20-authority is being calculated minus the special education budget of21-expenditures as filed on the school district budget statement on or22-before September 30 for the immediately preceding school fiscal year,23-which special education budget of expenditures is increased by the basic24-allowable growth rate for the school fiscal year for which budget25-authority is being calculated. 26-(3) For any school fiscal year for which the budget authority for27-the general fund budget of expenditures for a school district is based on28-a student growth adjustment, the budget authority for the general fund29-budget of expenditures for such school district shall be adjusted in30-future years to reflect any student growth adjustment corrections related31-LB498-2025-LB498-2025--4--to such student growth adjustment. 1-Sec. 5. Section 79-1027, Reissue Revised Statutes of Nebraska, is2-amended to read: 3-79-1027 No district shall adopt a budget, which includes total4-requirements of depreciation funds, necessary employee benefit fund cash5-reserves, and necessary general fund cash reserves, exceeding the6-applicable allowable reserve percentages of total general fund budget of7-expenditures as specified in the schedule set forth in this section.8-Average daily 9 Allowable-membership of 10 reserve-district 11 percentage-0 - 471 12 45-471.01 - 3,044 13 35-3,044.01 - 10,000 14 25-10,000.01 and over 15 20-On or before June 15, 2025 2023, and on or before March 1 each year16-thereafter, the department shall determine and certify each district's17-applicable allowable reserve percentage for the ensuing school fiscal18-year. 19-Each district with combined necessary general fund cash reserves,20-total requirements of depreciation funds, and necessary employee benefit21-fund cash reserves less than the applicable allowable reserve percentage22-specified in this section may, notwithstanding the district's applicable23-allowable growth rate, increase its necessary general fund cash reserves24-such that the total necessary general fund cash reserves, total25-requirements of depreciation funds, and necessary employee benefit fund26-cash reserves do not exceed such applicable allowable reserve percentage.27-Sec. 6. Section 79-1031.01, Reissue Revised Statutes of Nebraska, is28-amended to read: 29-79-1031.01 The Appropriations Committee of the Legislature shall30-annually include the amount necessary to fund the state aid that will be31-LB498-2025-LB498-2025--5--certified to school districts on or before June 15, 2025 2023, and on or1-before March 1 of each year thereafter for each ensuing school fiscal2-year in its recommendations to the Legislature to carry out the3-requirements of the Tax Equity and Educational Opportunities Support Act.4-Sec. 7. Original sections 79-1006, 79-1022, 79-1022.02, 79-1023,5-79-1027, and 79-1031.01, Reissue Revised Statutes of Nebraska, are6-repealed. 7-Sec. 8. Since an emergency exists, this act takes effect when8-passed and approved according to law. 9-LB498-2025-LB498-2025--6-+Date of Hearing: February 10, 2025++The following constitutes the reasons for this bill and the purposes which are sought to be+accomplished thereby:+LB 498 modifies school foundation aid to increases in the Consumer Price Index.++Principal Introducer: ________________________________+Senator Dave Murman+- 1 -
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