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--- version:Introduced+++ version:(document, no version)@@ -1,358 +1,22 @@-LEGISLATURE OF NEBRASKA-ONE HUNDRED NINTH LEGISLATURE-FIRST SESSION-LEGISLATIVE BILL 597+One Hundred Ninth Legislature - First Session - 2025+Introducer's Statement of Intent+LB597-Introduced by DeBoer, 10.-Read first time January 22, 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, 79-1015.01,2-79-1016, 79-1022, 79-1022.02, 79-1023, 79-1027, and 79-1031.01,3-Reissue Revised Statutes of Nebraska; to change provisions relating4-to foundation aid, local effort rate yield; adjusted valuations of5-property, and certain certification dates; to harmonize provisions;6-to repeal the original sections; and to declare an emergency.7-Be it enacted by the people of the State of Nebraska,8-LB597-2025-LB597-2025--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) Through school fiscal year 2024-25, the (2) The foundation7-aid to be paid to each school district in each school fiscal year shall8-equal one thousand five hundred dollars multiplied by the number of9-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 the greater of: 13-(i) One thousand five hundred dollars multiplied by the number of14-formula students for such school district; or 15-(ii) Seven and one-half percent of the basic funding calculated16-pursuant to section 79-1007.16 for such school district.17-(3) Twenty-four percent of the total amount of foundation aid paid18-each school fiscal year shall be paid from money appropriated from the19-Education Future Fund. 20-(4) For school fiscal years 2023-24 and 2024-25, one hundred percent21-of foundation aid shall be included as a formula resource pursuant to22-section 79-1017.01. For school fiscal year 2025-26 and each school fiscal23-year thereafter, sixty percent of foundation aid shall be included as a24-formula resource pursuant to section 79-1017.01. 25-Sec. 2. Section 79-1015.01, Reissue Revised Statutes of Nebraska, is26-amended to read: 27-79-1015.01 (1) Local system formula resources shall include local28-effort rate yield which shall be computed as prescribed in this section.29-(2) Beginning with school fiscal year 2025-26 and for each school30-fiscal year thereafter: (a) For state aid certified pursuant to section31-LB597-2025-LB597-2025--2--79-1022, the local effort rate shall be the maximum levy, for the school1-fiscal year for which aid is being certified, authorized pursuant to2-subdivision (2)(a) of section 77-3442 less ten cents; (b) for the final3-calculation of state aid pursuant to section 79-1065, the local effort4-rate shall be the rate which, when multiplied by the total adjusted5-valuation of all taxable property in local systems receiving equalization6-aid pursuant to the Tax Equity and Educational Opportunities Support Act,7-will produce the amount needed to support the total formula need of such8-local systems when added to state aid appropriated by the Legislature and9-other actual receipts of local systems described in section 79-1018.01;10-and (c) the local effort rate yield for such school fiscal years shall be11-determined by multiplying each local system's total adjusted valuation by12-the local effort rate. 13-(3) Through school fiscal year 2024-25, for (2) For each school14-fiscal year except school fiscal years 2017-18 and 2018-19: (a) For state15-aid certified pursuant to section 79-1022, the local effort rate shall be16-the maximum levy, for the school fiscal year for which aid is being17-certified, authorized pursuant to subdivision (2)(a) of section 77-344218-less five cents; (b) for the final calculation of state aid pursuant to19-section 79-1065, the local effort rate shall be the rate which, when20-multiplied by the total adjusted valuation of all taxable property in21-local systems receiving equalization aid pursuant to the Tax Equity and22-Educational Opportunities Support Act, will produce the amount needed to23-support the total formula need of such local systems when added to state24-aid appropriated by the Legislature and other actual receipts of local25-systems described in section 79-1018.01; and (c) the local effort rate26-yield for such school fiscal years shall be determined by multiplying27-each local system's total adjusted valuation by the local effort rate.28-(4) (3) For school fiscal years 2017-18 and 2018-19: (a) For state29-aid certified pursuant to section 79-1022, the local effort rate shall be30-the maximum levy, for the school fiscal year for which aid is being31-LB597-2025-LB597-2025--3--certified, authorized pursuant to subdivision (2)(a) of section 77-34421-less two and ninety-seven hundredths cents; (b) for the final calculation2-of state aid pursuant to section 79-1065, the local effort rate shall be3-the rate which, when multiplied by the total adjusted valuation of all4-taxable property in local systems receiving equalization aid pursuant to5-the Tax Equity and Educational Opportunities Support Act, will produce6-the amount needed to support the total formula need of such local systems7-when added to state aid appropriated by the Legislature and other actual8-receipts of local systems described in section 79-1018.01; and (c) the9-local effort rate yield for such school fiscal years shall be determined10-by multiplying each local system's total adjusted valuation by the local11-effort rate. 12-Sec. 3. Section 79-1016, Reissue Revised Statutes of Nebraska, is13-amended to read: 14-79-1016 (1) On or before August 20, the county assessor shall15-certify to the Property Tax Administrator the total taxable value by16-school district in the county for the current assessment year on forms17-prescribed by the Tax Commissioner. The county assessor may amend the18-filing for changes made to the taxable valuation of the school district19-in the county if corrections or errors on the original certification are20-discovered. Amendments shall be certified to the Property Tax21-Administrator on or before August 31. 22-(2) On or before October 10, the Property Tax Administrator shall23-compute and certify to the State Department of Education the adjusted24-valuation for the current assessment year for each class of property in25-each school district and each local system. The adjusted valuation of26-property for each school district and each local system, for purposes of27-determining state aid pursuant to the Tax Equity and Educational28-Opportunities Support Act, shall reflect as nearly as possible state aid29-value as defined in subsection (3) of this section. The Property Tax30-Administrator shall notify each school district and each local system of31-LB597-2025-LB597-2025--4--its adjusted valuation for the current assessment year by class of1-property on or before October 10. Establishment of the adjusted valuation2-shall be based on the taxable value certified by the county assessor for3-each school district in the county adjusted by the determination of the4-level of value for each school district from an analysis of the5-comprehensive assessment ratio study or other studies developed by the6-Property Tax Administrator, in compliance with professionally accepted7-mass appraisal techniques, as required by section 77-1327. The Tax8-Commissioner shall adopt and promulgate rules and regulations setting9-forth standards for the determination of level of value for state aid10-purposes. 11-(3) For purposes of this section, state aid value means:12-(a) For real property other than agricultural and horticultural13-land, ninety-six percent of actual value; 14-(b) For agricultural and horticultural land : ,15-(i) For the adjusted valuation used for the calculation of aid for16-school fiscal years prior to school fiscal year 2025-26, seventy-two17-percent of actual value as provided in sections 77-1359 and to 77-1363.18-(ii) For the adjusted valuation used for the calculation of aid for19-school fiscal year 2025-26 and each school fiscal year thereafter, sixty-20-five percent of actual value as provided in section 77-1359 and 77-1363;21-(c) For agricultural and horticultural land that receives special22-valuation pursuant to section 77-1344 : , 23-(i) For the adjusted valuation used for the calculation of aid for24-school fiscal years prior to school fiscal year 2025-26, seventy-two25-percent of special valuation as defined in section 77-1343; and26-(ii) For the adjusted valuation used for the calculation of aid for27-school fiscal year 2025-26 and each school fiscal year thereafter, sixty-28-five percent of special valuation as defined in section 77-1343; and29-(d) (c) For personal property, the net book value as defined in30-section 77-120. 31-LB597-2025-LB597-2025--5--(4) On or before November 10, any local system may file with the Tax1-Commissioner written objections to the adjusted valuations prepared by2-the Property Tax Administrator, stating the reasons why such adjusted3-valuations are not the valuations required by subsection (3) of this4-section. The Tax Commissioner shall fix a time for a hearing. Either5-party shall be permitted to introduce any evidence in reference thereto.6-On or before January 1, the Tax Commissioner shall enter a written order7-modifying or declining to modify, in whole or in part, the adjusted8-valuations and shall certify the order to the State Department of9-Education. Modification by the Tax Commissioner shall be based upon the10-evidence introduced at hearing and shall not be limited to the11-modification requested in the written objections or at hearing. A copy of12-the written order shall be mailed to the local system within seven days13-after the date of the order. The written order of the Tax Commissioner14-may be appealed within thirty days after the date of the order to the Tax15-Equalization and Review Commission in accordance with section 77-5013.16-(5) On or before November 10, any local system or county official17-may file with the Tax Commissioner a written request for a nonappealable18-correction of the adjusted valuation due to clerical error as defined in19-section 77-128 or, for agricultural and horticultural land, assessed20-value changes by reason of land qualified or disqualified for special use21-valuation pursuant to sections 77-1343 to 77-1347.01. On or before the22-following January 1, the Tax Commissioner shall approve or deny the23-request and, if approved, certify the corrected adjusted valuations24-resulting from such action to the State Department of Education.25-(6) On or before May 31 of the year following the certification of26-adjusted valuation pursuant to subsection (2) of this section, any local27-system or county official may file with the Tax Commissioner a written28-request for a nonappealable correction of the adjusted valuation due to29-changes to the tax list that change the assessed value of taxable30-property. Upon the filing of the written request, the Tax Commissioner31-LB597-2025-LB597-2025--6--shall require the county assessor to recertify the taxable valuation by1-school district in the county on forms prescribed by the Tax2-Commissioner. The recertified valuation shall be the valuation that was3-certified on the tax list, pursuant to section 77-1613, increased or4-decreased by changes to the tax list that change the assessed value of5-taxable property in the school district in the county in the prior6-assessment year. On or before the following July 31, the Tax Commissioner7-shall approve or deny the request and, if approved, certify the corrected8-adjusted valuations resulting from such action to the State Department of9-Education. 10-(7) No injunction shall be granted restraining the distribution of11-state aid based upon the adjusted valuations pursuant to this section.12-(8) A school district whose state aid is to be calculated pursuant13-to subsection (5) of this section and whose state aid payment is14-postponed as a result of failure to calculate state aid pursuant to such15-subsection may apply to the state board for lump-sum payment of such16-postponed state aid. Such application may be for any amount up to one17-hundred percent of the postponed state aid. The state board may grant the18-entire amount applied for or any portion of such amount. The state board19-shall notify the Director of Administrative Services of the amount of20-funds to be paid in a lump sum and the reduced amount of the monthly21-payments. The Director of Administrative Services shall, at the time of22-the next state aid payment made pursuant to section 79-1022, draw a23-warrant for the lump-sum amount from appropriated funds and forward such24-warrant to the district. 25-Sec. 4. Section 79-1022, Reissue Revised Statutes of Nebraska, is26-amended to read: 27-79-1022 (1) On or before June 15, 2025 2023, and on or before March28-1 of each year thereafter, the department shall determine the amounts to29-be distributed to each local system for the ensuing school fiscal year30-pursuant to the Tax Equity and Educational Opportunities Support Act and31-LB597-2025-LB597-2025--7--shall certify the amounts to the Director of Administrative Services, the1-Auditor of Public Accounts, and each local system. On or before June 15,2-2025 2023, and on or before March 1 of each year thereafter, the3-department shall report the necessary funding level for the ensuing4-school fiscal year to the Governor, the Appropriations Committee of the5-Legislature, and the Education Committee of the Legislature. The report6-submitted to the committees of the Legislature shall be submitted7-electronically. Except as otherwise provided in this subsection,8-certified state aid amounts, including adjustments pursuant to section9-79-1065.02, shall be shown as budgeted non-property-tax receipts and10-deducted prior to calculating the property tax request in the local11-system's general fund budget statement as provided to the Auditor of12-Public Accounts pursuant to section 79-1024. 13-(2) Except as provided in this subsection, subsection (8) of section14-79-1016, and sections 79-1005, 79-1033, and 79-1065.02, the amounts15-certified pursuant to subsection (1) of this section shall be distributed16-in ten as nearly as possible equal payments on the last business day of17-each month beginning in September of each ensuing school fiscal year and18-ending in June of the following year, except that when a local system is19-to receive a monthly payment of less than one thousand dollars, such20-payment shall be one lump-sum payment on the last business day of21-December during the ensuing school fiscal year. 22-Sec. 5. Section 79-1022.02, Reissue Revised Statutes of Nebraska, is23-amended to read: 24-79-1022.02 Notwithstanding any other provision of law, any25-certification of state aid pursuant to section 79-1022, certification of26-budget authority pursuant to section 79-1023, and certification of27-applicable allowable reserve percentages pursuant to section 79-102728-completed prior to the effective date of this act June 1, 2023, for29-school fiscal year 2025-26 2023-24 are null and void.30-Sec. 6. Section 79-1023, Reissue Revised Statutes of Nebraska, is31-LB597-2025-LB597-2025--8--amended to read: 1-79-1023 (1) On or before June 15, 2025 2023, and on or before March2-1 of each year thereafter, the department shall determine and certify to3-each school district budget authority for the general fund budget of4-expenditures for the ensuing school fiscal year. 5-(2) Except as provided in sections 79-1028.01, 79-1029, 79-1030, and6-81-829.51, each school district shall have budget authority for the7-general fund budget of expenditures equal to the greater of (a) the8-general fund budget of expenditures for the immediately preceding school9-fiscal year minus exclusions pursuant to subsection (1) of section10-79-1028.01 for such school fiscal year with the difference increased by11-the basic allowable growth rate for the school fiscal year for which12-budget authority is being calculated, (b) the general fund budget of13-expenditures for the immediately preceding school fiscal year minus14-exclusions pursuant to subsection (1) of section 79-1028.01 for such15-school fiscal year with the difference increased by an amount equal to16-any student growth adjustment calculated for the school fiscal year for17-which budget authority is being calculated, or (c) one hundred ten18-percent of formula need for the school fiscal year for which budget19-authority is being calculated minus the special education budget of20-expenditures as filed on the school district budget statement on or21-before September 30 for the immediately preceding school fiscal year,22-which special education budget of expenditures is increased by the basic23-allowable growth rate for the school fiscal year for which budget24-authority is being calculated. 25-(3) For any school fiscal year for which the budget authority for26-the general fund budget of expenditures for a school district is based on27-a student growth adjustment, the budget authority for the general fund28-budget of expenditures for such school district shall be adjusted in29-future years to reflect any student growth adjustment corrections related30-to such student growth adjustment. 31-LB597-2025-LB597-2025--9--Sec. 7. Section 79-1027, Reissue Revised Statutes of Nebraska, is1-amended to read: 2-79-1027 No district shall adopt a budget, which includes total3-requirements of depreciation funds, necessary employee benefit fund cash4-reserves, and necessary general fund cash reserves, exceeding the5-applicable allowable reserve percentages of total general fund budget of6-expenditures as specified in the schedule set forth in this section.7-Average daily 8 Allowable-membership of 9 reserve-district 10 percentage-0 - 471 11 45-471.01 - 3,044 12 35-3,044.01 - 10,000 13 25-10,000.01 and over 14 20-On or before June 15, 2025 2023, and on or before March 1 each year15-thereafter, the department shall determine and certify each district's16-applicable allowable reserve percentage for the ensuing school fiscal17-year. 18-Each district with combined necessary general fund cash reserves,19-total requirements of depreciation funds, and necessary employee benefit20-fund cash reserves less than the applicable allowable reserve percentage21-specified in this section may, notwithstanding the district's applicable22-allowable growth rate, increase its necessary general fund cash reserves23-such that the total necessary general fund cash reserves, total24-requirements of depreciation funds, and necessary employee benefit fund25-cash reserves do not exceed such applicable allowable reserve percentage.26-Sec. 8. Section 79-1031.01, Reissue Revised Statutes of Nebraska, is27-amended to read: 28-79-1031.01 The Appropriations Committee of the Legislature shall29-annually include the amount necessary to fund the state aid that will be30-certified to school districts on or before June 15, 2025 2023, and on or31-LB597-2025-LB597-2025--10--before March 1 of each year thereafter for each ensuing school fiscal1-year in its recommendations to the Legislature to carry out the2-requirements of the Tax Equity and Educational Opportunities Support Act.3-Sec. 9. Original sections 79-1006, 79-1015.01, 79-1016, 79-1022,4-79-1022.02, 79-1023, 79-1027, and 79-1031.01, Reissue Revised Statutes of5-Nebraska, are repealed. 6-Sec. 10. Since an emergency exists, this act takes effect when7-passed and approved according to law. 8-LB597-2025-LB597-2025--11-+Date of Hearing: February 10, 2025++The following constitutes the reasons for this bill and the purposes which are sought to be+accomplished thereby:+LB597 makes the following adjustments to the TEEOSA formula for the 2025-26 school+fiscal year:+-Foundation Aid shall be the greater of $1,500 per formula student or 7.5% of the basic+funding as calculated+-The maximum levy of a school district shall be 95 cents, the Local Effort Rate shall be 90+cents per 100 dollar valuation+-The valuation calculation for agricultural and horticultural land value inside the formula+shall value such land at 65% of actual value++Principal Introducer: ________________________________+Senator Wendy DeBoer+- 1 -
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