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-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 Murman
Committee: 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
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-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
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-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
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-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
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-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
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-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
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+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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