PREPARED BY: Mikayla Findlay
LB 11 DATE PREPARED: July 26, 2024
PHONE: 402-471-0062
Revision: 00
FISCAL NOTE
LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS $3,017,333 $4,508,000
CASH FUNDS $53,168,667 $84,458,000
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS See Below $56,186,000 See Below $88,966,000
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 11 would change the tax on each package of cigarettes containing not more than 20 cigarettes to $2.14 from the current $0.64 per
package. $1.00 of the tax increase would be placed in the Property Tax Credit Cash Fund and the other $0.50 of the tax increase would
be placed into the Medicaid Waiver Cash Fund by the State Treasurer beginning October 1, 2024 and every fiscal year thereafter.
The bill also creates the mentioned Medicaid Waiver Cash Fund. The Department of Health and Human Services (DHHS) would
administer the fund and would use the fund to pay the state portion of the costs of services provided through Medicaid waivers.
The Department of Revenue (DOR) estimated the following fiscal impact of an identical proposal which was introduced in LB 745
(2023) which would have been effective July 1, 2023:
There is estimated to be a revenue gain to the State Highway Capital Improvement Fund and to the Highway Allocation Fund, which is
distributed to cities and counties. Revenue to the General Fund is due to the increase in sales tax collected on cigarettes.
The estimates FY24 for LB 745 (2023) reflect a full fiscal year whereas L B 11 would not go into effect until after October 1, 2024 and
due to a one month lag the estimat ed revenue impact of FY25 reflects 8 months of a fiscal year:
Fiscal Year
General Fund
Revenues
Property Tax
Credit Cash
Fund
Medicaid
Waiver Cash
Fund
State Highway
Capital
Improvement
Fund
Highway Allocation
Fund (Cities and
Counties)
FY2024-25 3,017,333$ 35,363,333$ 17,682,000$ 104,667$ 18,667$
FY2025-26 4,508,000$ 56,184,000$ 28,092,000$ 182,000$ 23,000$
FY2025-27 4,372,000$ 54,488,000$ 27,244,000$ 177,000$ 31,000$
FY2027-28 4,242,000$ 52,866,000$ 26,433,000$ 172,000$ 30,000$
For LB 745 (2023), DOR estimated minimal costs to implement the bill whereas DHHS indicated need of additional staffing depending
on the intended use and requirements of administering the created fund. There is no basis to disagree with this estimate.