PREPARED BY: John Wiemer
LB 16 DATE PREPARED: July 28, 2024
PHONE: 402-471-0051
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
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS See Below See Below See Below See Below
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 16 seeks to amend various sections related to taxation, and to enact the Nebraska EPIC Option Consumption Tax Act (EPIC Act).
LB 16 would terminate the following:
• The Nebraska Budget Act
• Tax-increment financing
• Motor vehicle tax
• Motor vehicle fees
• Property tax
• The inheritance tax
• Sales and use taxes
• The income tax
• The Homestead exemption
• The Tax Equity and Educational Opportunities Support Act (TEEOSA)
• The Community College Aid Act
Additionally, LB 16 would change the deadline for applications under the ImagiNE Nebraska Act to be the effective date of the EPIC
Act.
The Nebraska Budget Act:
Under LB 16, The Nebraska Budget Act would be terminated as of January 1, 2026. On and after that date, the EPIC Act would dictate
the budget process.
Motor Vehicle Tax and Fees:
The motor vehicle tax imposed in section 60-3,185 and the motor vehicle fee imposed in section 60- 3,190 would be repealed at the end
of the day on De cember 31, 2025. Such taxes and fees due from 2025 could be collected during calendar year 2026, but no such taxes
or fees would be imposed beginning January 1, 2026.
Property Tax:
Under LB 16, property tax imposed pursuant to Chapter 77 would be repealed at the end of the day on December 31, 2025. Property
taxes due from 2025 could still be collected during calendar year 2026, but no property taxes would be imposed on real or personal
property beginning January 1, 2026. Along with this, the division of taxes for tax-increment financing would also be terminated. With the
termination of property taxes, the Homestead Exemption, TEEOSA, and the Community College Aid Act would end.
The Inheritance Tax:
Under LB 16, the inheritance tax imposed pursuant to sections 77-2001 to 77-2040 would be repealed at the end of the day on
December 31, 2025. Inheritance taxes due from 2025 could be collected during calendar year 2026, but no inheritance taxes would be imposed on a deceased person’s estate beginning January 1, 2026.
Sales and Use Taxes:
Under LB 16, the state sales and use tax of the Nebraska Revenue Act of 1967 and all local sales and use taxes of the Local Option
Revenue Act, the Qualified Judgment Payment Act, and sections 13-319 and 13-2813 would be repealed at the end of the day on
December 31, 2025. The Department of Revenue (DOR) could collect sales and use taxes due from 2025 during calendar year 2026,
but no sales and use taxes would be imposed on purchases of goods and services beginning January 1, 2026. The current recipients of state sales and use tax are the General Fund, Department of Transportation, and cities and counties through the Highway Allocation
Fund.
The Income Tax:
Under LB 16, the state income tax of the Nebraska Revenue Act of 1967 would be repealed at the end of the day on December 31,
2025. The DOR could collect taxes due from 2025 during calendar year 2026, but income earned in 2026 would not be subject to the
income tax.
Consumption Tax:
LB 16 seeks to institute a consumption tax in place of the various sources of tax revenue that would be eliminated under the bill. Under
the EPIC Act, the consumption tax would begin on January 1, 2026 on taxable property or services at a rate of 7.5%.
Counties, cities, and villages could im pose an additional consumption tax not to exceed 1% for the purpose of repaying bonds.
LB 16 details what would be exempt from the consumption tax.
LB 16 requires all registered sellers or liable persons to remit consumption taxes on or before the fifteenth day of each month to the Tax
Commissioner, with certain exceptions, along with the completion of a form reporting various details relating to gross payments received and taxes collected for the prior month. The EPIC Act allows for registered sellers to deduct 0.25% from the consumption tax
collected to reimburse for the cost to collect the tax.
LB 16 identifies large sellers as any seller that has collected more than $100,000 in cons umption tax in the prior 12 months. These
sellers are required to remit their taxes due to the Tax Commissioner on the first Monday or first business day following the end of each
week.
The proceeds of the taxes paid pursuant to the EPIC Act would be collected by the DOR and credited to the General Fund.
LB 16 would provide up to $1,000, up to $5,000, and up to $10,000 of exemptions to the consumption tax on gross payments per
calendar year and a credit for qualified inventory of a trade or business.
LB 16 would establish a process of budgeting for state agencies (also applies to the University of Nebraska and the Nebraska state
college system). Beginning in 2026, each state agency would submit an annual budget request to the Appropriations Committee
chairperson and to the Governor. An ann ual request for an agency would be limited to the amount equal to the percentage change in
the Consumer Price Index for All Urban Consumers, which is released by the federal Bureau of Labor Statistics. In the event of an
emergency where an unforeseen contingency arises, the agency can petition the Legislature for a budget increase up to 2.5%. In the
event of a natural disaster where the Governor has declared the affected area as a disaster area, the agency can petition the
Legislature for a budget increase up to 5%.
Under LB 16, beginning in 2026, the Governor would submit an annual statewide budget to the Legislature by December 1. The
Appropriations Committee of the Legislature would approve and submit a bill or bills for the annual statewide budget for approval by the
Legislature. The bill or bills would balance expenses with state revenue projected by the Nebraska Economic Forecasting Advisory
Board.
LB 16 would create the Budget Equalization and Review Board so that the 93 counties and all political subdivisions in this state receive
representation regarding funding for their operations. The Board would consist of 7 members with 5 regional representatives, the
secretary, and the Auditor of Public Accounts or his or her designee. The regional representatives would make a comprehensive report
for all of the countywide budget proposals within their respective regions and would submit such comprehensive report to the Board for
approval. Each comprehensive report would require a majority vote of the regional representatives for approval. Once approved, the
proposals would be included in a statewide report prepared by the Secretary of the Board and the statewide report would need to be
approved by a majority vote of the regional representatives. After approval, the Secretary of the Board would submit the stat ewide
report to the Governor and to the chairperson of the Appropriations Committee.
LB 16 would establish the County Trust Fund to supply political subdivisions with adequate funds to run their respective operations. The
Appropriations Committee would use the mentioned statewide report to determine the amount to be transferred each year to the County
Trust Fund. The State Treasurer would transfer money to the County Trust Fund as directed by the Legislature.
LB 16 would establish the County Stabilization Fund to assist counties with additional or unexpected expenditures. The Legislature
could transfer money into the County Stabilization Fund as needed, but at no time could the balance of the County Stabilization Fund
exceed 10% of the total amount transferred for the year into the County Trust Fund. The distributions to be made from the County
Stabilization Fund made annually to each county would be based on each county’s SEND score. This score would reflect the amount
that a county needs to provide standardized quality countywide services to the residents of the county.
LB 16 would establish the County Rainy Day Fund to provide money to counties that are recovering from a fire, a flood, a tornado, or
any other kind of natural disaster which destroys buildings or structures used for governmental purposes or to renovate uninhabitable
properties. The Legislature could transfer money into the County Rainy Day Fund as needed, but at no time could the balance of the
County Rainy Day Fund exceed 8% of the total amount transferred for the year into the County Trust Fund.
LB 16 would create the School Equalization and Review Board so that school districts receive representation regarding funding for their
operations. Like the Budget and Equalization Review Board, it would be composed of 5 regional representatives, a secretary, and the Auditor of Public Accounts or his or her designee. The regional representatives would submit a region-wide report of all of the school
districts within the representative’s jurisdiction to the Board for approval. Each region -wide report would require a majority vote of the
regional representatives for approval. Once approved, the proposals would be included in a statewide report prepared by the Secretary
of the Board and the statewide report would need to be approved by a majority vote of the regional representatives. After approval, the
Secretary of the Board would submit the statewide report to the Governor and to the chairperson of the Appropriations Comm ittee.
LB 16 would establish the Education Trust Fund to provide for the free instruction in the common schools of the state. The Legislature
would transfer money into the Education Trust Fund annually to cover the five-year averag e operational costs per school plus 2% for all
public schools operating within the state. The Appropriations Committee would use the mentioned statewide report to determine the
amount to be transferred each year to the Education Trust Fund. The State Treasurer would transfer money to the Education Trust
Fund as directed by the Legislature.
LB 16 would establish the Education Stabilization Fund so school districts receive funding for their operations. The Legislature could
transfer money into the Education Stabilization Fund as needed, but at no time could the balance of the Education Stabilization Fund
exceed 10% of the total amount transferred for the year into the Education Trust Fund. The distributions to be made from the Education
Stabilization Fund made annually to each school district would be based on each school district’s stabilization score. The stabilization
score would take into account special student needs, transportation, technology, textbooks, and poverty.
LB 16 would establish the Education Facilities and Growth Fund to provide money to school districts for the construction of new
buildings and facilities, the maintenance of current buildings and facilities, and growth promotion. The Legislature could transfer money
into the Education Facilities and Growth Fund as needed, but at no time could the balance of the Education Facilities and Growth Fund
exceed 8% of the total amount transferred for the year into the Education Trust Fund.
LB 16 would create the School Facilities Assessment Committee. The purpose of the committee would be to assess the conditions of
the facilities belonging to Nebraska’ s public school districts, develop plans for the construction of new facilities and maintenance of
existing structures, and oversee the distribution of funds for capital projects. Annually, the committee would submit a report of the needs
of public school district facilities to the School Facilities and Growth Commission. The committee would consist of five members who
would be appointment by the Commissioner of Education and may be removed by the Governor.
LB 16 would create the School Programs and Growth Committee. The purpose of the committee would be to measure the growth of
Nebraska’ s public school districts, assess the needs for new or expanded programs, and oversee the distribution of funds for such new
or expanded programs. Annually, the committee would submit a report of the growth needs of public school district facilities to the
School Programs and Growth Commission. The committee would consist of five members who would be appointment by the
Commissioner of Education and may be removed by the Governor.
LB 16 would create the School Facilities and Growth Commission. The purpose of the Commission would be to establish the policies to
be used for measuring the conditions of exi sting public school district facilities, the procedures for assessing the need for new
structures or new facilities, the methodology for measuring public school district growth, and the procedures for assessing the need for
new or expanded programs. Annually, the Commission would submit an annual report of recommended capital improvement projects,
new facilities, and new programs and growth potential to the Secretary of the School Equalization and Review board. The Commission
would consist of five members w ho would be appointed by the Governor, subject to approval by the Legislature. The members of the
commission could be removed by the Governor.
LB 16 is similar to LB 79 that was introduced in 2023 but does differ to LB 79 i n some respects. Among these differences is that LB 16
additionally eliminates the mentioned motor vehicle tax and fee. This would result in decreased revenue. Additionally, LB 16 creates the
School Facilities Assessment Committee, the School Programs and Growth Committee, and the School Facilities and Growth
Commission. The addition of these committees and commission under LB 16 would increase spending of the state compared to LB 79.
Also, LB 16 places a cap for c ounties, cities, and villages on imposing an additional consumption tax at 1% for the purpose of repaying
bonds whereas in LB 79 there was no cap. This alters the ability for these political subdivisions to raise revenue compared to LB 79.
Given current information, the fiscal effect of LB 16 is indeterminant at this time. If further information is received, the fiscal note for this
bill will be updated. However, the fiscal estimates and fiscal analysis for LB 79 are provided below for reference with the similarities
between LB 16 and LB 79.
The DOR estimates the consumption tax from LB 79 would generate the following revenue to the General Fund:
• FY24-25: $0
• FY25-26: $2,978,000,000
• FY26-27: $7,493,000,000
• FY27-28: $7,855,000,000
• FY28-29: $8,234,000,000
This revenue gain is estimated by the DOR to be offset by the elimination of income, sales, property, and inheritance tax, which would
cause a revenue loss of:
• FY24-25: $0
• FY25-26: ($3,271,000,000)
• FY26-27: ($9,287,000,000)
• FY27-28: ($12,407,000,000)
• FY28-29: ($12,799,000,000)
The DOR estimates net expenditures for the General Fund to change, as well. The elimination of the Homestead Exemption and Real
Property Tax Credit will decrease expenditures. This estimated net change in General Fund expenditures is as follows:
• FY24-25: $0
• FY25-26: $0
• FY26-27: ($739,600,000)
• FY27-28: ($763,250,000)
• FY28-29: ($787,635,500)
The DOR assumes that new revenue will be used to redistribute back to all of the funds and political subdivisions impacted by the EPIC
Act. This includes the Highway Allocation Fund, the State Highway Capital Improvement Fund, the Highway Cash Fund, and local
option sales tax. Given this, the net impact of LB 79 is estimated as follows by the DOR:
• FY24-25: $0
• FY25-26: ($763,000,000)
• FY26-27: ($2,312,800,000)
• FY27-28: ($5,088,150,000)
• FY28-29: ($5,119,164,500)
There is no basis to disagree with these estimates by the DOR.
Also, the DOR estimates a one-time OCIO programming charge of $1,391,544 for mainframe and web development. Additionally, DOR
projects the need for additional staff beginning in FY24-25, including Training Specialists, Revenue Agents, Fiscal Compliance
Analysts, Revenue Auditors, and more. DOR estimates this to be offset by a reduction in staff beginning in FY26-27 as tax issues are
completed and positions are eliminated or reassigned. These positions are primarily those relating to property assessment and revenue
operations. As a result, this would reduce DOR expenditures each year over time.
The Department of Health and Human Services approximates a reduction to the Temporary Assistance for Needy Families (TANF)
federal funding in the amount of $16,772,596 based on FY22 numbers as a result of the elimination of the Nebraska Earned Income
Tax Credit and Child and Dependent Care Tax Credit that could no longer be claimed as a result of this bill. There is no basis to
disagree with this estimate.
The Department of Administrative Services (DAS) estimates an increase to state expenditures as a result of the state being taxed
through the consumption tax under this bill. DAS estimates an increase to expenditures in FY25-26 of $75,118,482 and $150,236,963
in FY26-27. There is no basis to disagree with these estimates.
The state is also anticipated to have additional responsibilities under this bill that would result in significant increased exp enditures. The
change to the budget process adds the Budget Equalization and Review Board and the School Equalization and Review Board to
compile and approve budgets statewide for political subdivisions. This task will require staff and operational funding for these Boards in
order to fulfill their responsibilities. In addition, once these budgets are passed by the Boards, the Legislature and Governor would need
more staff for the review of these added governmental budgets now under the purview of the state for funding.
With the creation of the Budget Equalization and Review Board, political subdivisions would send their budget proposals to the county
for the countywide report. Political subdivisions would be defined as any political subdivision in the state other than a school distric t.
When political subdivisions cover multiple counties, this bill would create complexities for how to fund these political subdivisions.
The effect to counties and other political subdivisions would be significant as a result of this bill. The revenue sources for nearly all
political subdivisions would be eliminated with the repealing of the inheritance, sales and use, and property tax. The EPIC Act would
allow for counties, cities, or villages to impose their own consumption taxes, which would offset th e revenue loss if utilized.
The sections of the EPIC Act that change the Nebraska budget process would also significantly impact counties and other political
subdivisions. These entities would need to restructure their pr ocesses to comply with the new requirements. The elimination of the
taxes in the EPIC Act would reduce spending needs for staff and activities that had been connected to the eliminated taxes while staff
may be added or re-ass igned to account for new responsibilities under this bill. Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 16 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Attorney General
Prepared by:
(3) Jay Bartel Date Prepared:
(4)
7-25-24 Phone:
(5)
402-471-2687
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
No Fiscal Impact.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS O F EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
24-25 25-26
2024-25
EXPENDITURES
2025-26
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………… ……………..
Capital outlay…………………...…………..
Aid……………………………………… …...
Capital improvements……………………...
TOTAL……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 16 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Department of Natural Resources
Prepared by:
(3) Emily Rose Date Prepared:
(4)
7/26/2024 Phone:
(5)
402-471-1681
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
No fiscal impact.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
24-25 25-26
2024-25
EXPENDITURES
2025-26
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid……………………………………… …...
Capital improvements……………………...
TOTAL……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 16 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Lancaster County (Budget & Fiscal)
Prepared by:
(3) Dennis Meyer Date Prepared:
(4)
7-26-24 Phone:
(5)
402-441-6869
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
Lancaster County’s revenue would decrease because of the elimination of property taxes and inheritance
taxes. The County’s budgeted amount of property tax for FY24- 25 is $95.5 million and the amount for
inheritance tax is $7.8 million. Elimination of motor vehicle tax could result in a $11.75 million loss in revenue
to the county. Estimating the amount of reduction in other revenues is almost impossible because of unknown
variances. Interest earnings will be subject to when money is received at the county level versus when
property tax was collected. Estimating county revenues from EPIC is almost impossible because of so many
unknown variables.
Estimating the changes in expenditures is impossible because of unknown changes that could and would
happen. Departments will need to be reorganized and policies and procedures will change tremendously due
to the elimination of property taxes.
Payroll changes would need to be made and the payroll system will need to be updated.
The County Treasurer’s office will need to determine what revenues will still be collected at the county level.
Property taxes are just a piece of what is collected. Distributions to local subdivisions will need to be changed.
The County Assessor/Register of Deeds office will need to be reorganized due to the elimination of property
taxes.
Outstanding bonds that are backed by property tax will need to be reviewed.
The budget process will need to be reviewed because of the elimination of the Nebraska Budget Act. This bill
will change the budget process for all political subdivisions including that the county will collect all budget
information for all political subdivisions within each county. The information to be sent to the Budget
Equalization and Review Board will drive what the county will need to do to comply.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
24-25 25-26
2024-25
EXPENDITURES
2025-26
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 16 Special Session FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Association of County Officials (NACO)
Prepared by:
(3) Elaine Menzel Date Prepared:
(4)
7/26/2024 Phone:
(5)
402.434.5660
ESTIMATE PROVIDED BY STATE AGENCY OR P 6OLITICAL SUBDIVISION
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
LB16 would adopt the Nebraska EPIC Option Consumption Tax Act. This legislation would terminate many current taxes,
including property taxes, inheritance taxes, motor vehicle taxes and motor vehicle fees which are relied on by counties for
funding their operations. In place of the repealed taxes, a consumption tax would be implemented and collected by the
Department of Revenue beginning 1/1/2026 to fund county government. The State Treasurer would be responsible for
distributing revenue to counties pursuant to the State’s budget and any other outstanding liabilities. Counties could implement
consumption tax subject to the same authority as the Tax Commissioner. The overall fiscal impact changes are complex in
funding and budgeting for counties; therefore, the overall fiscal impact is unknown at this time.
Real and personal property taxes and inheritance taxes would be repealed effective 12/31/2025 by LB 16 . In 2023, local
governments levied over $5.3 Billion in property taxes, including counties which levied over $865 million of that amount. If in
effect, LB 16 would outright repeal counties’ authority to collect such taxes. The amount of reduction due to the elimination of
the inheritance tax would be approximately $75 million ($ Statewide inheritance tax receipts for all 93 counties in 2023 totaled
just over $100 million; this amount is estimated to be reduced by 25 due to the enactment of LB 310 (2022)). Reductions as a
result of the termination of motor vehicle taxes and motor vehicle fees would also be faced by counties.
The consumption tax revenue for counties and budget funding for operations would be administered and disbursed by the
State Treasurer. Funding received by each county would be determined by the Budget Equalization Board. The County Trust
Fund would be used to supply political subdivisions with adequate funds to run their respective operations. Additionally, the
County Stabilization Fund would be created for the purpose of assisting counties with additional or unexpended expenditures
and a rainy-day fund. There would be a transfer of functions from the State to counties and substantial ones from the counties
to the State, particularly for determining a county’s individual budgetary needs and providing an allowance for the operations of
such county.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
24-25 25-26
2024-25
EXPENDITURES
2025-26
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………... TOTAL……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 16 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Coordinating Commission for Postsecondary Edu cation
Prepared by:
(3) Gary Timm Date Prepared:
(4)
7/26/24 Phone:
(5)
402.471.0020
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
No fiscal impact.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
24-25 25-26
2024-25
EXPENDITURES
2025-26
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid……………………………………… …...
Capital improvements……………………...
TOTAL……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 16 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska State College System
Prepared by:
(3) Monte Kramer Date Prepared:
(4)
7-26-24 Phone:
(5)
402-471-2507
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
No fiscal impact in FY25 or FY26, however, budget reques ts starting in 2026 will be limited to the percentage
change in the Consumer Price Index, unless it i s an emergency.
This limitation to annual budget increases could precl ude the state colleges from requesting new programs like
the Career Scholarship Program or the Corrections Workforce Development Pathway Program, as examples ,
because they would be above and beyond the CPI increase to the operating budget. These programs are
critical to building the workforce in critical needs areas in the State of Nebraska.
Our budget requests are often focused on cost items that are escalating well beyond the CPI. Increases in our
liability and property insurance costs over the last five years are a good example: FY1 8 to FY19 – 5.85%;
FY19 to FY20 – 10.47%; FY20 to FY21 – 43.1%; FY21 to FY22 – 40.6%; FY22 to FY23 – 33.2%. Salar y
increases are another example. The minimum wage increases mandated by State law will require increases
on January 1: 2023 – 16.7%; 2024 – 14.3%’; 2025 – 12.5%; 2026 – 11.1%. NAPE Union salary increases
funded in FY23 were well beyond CPI with increa ses ranging from 10% to 20%, beyond the approved s alary
policy.
Aligning our budget increases with the CPI for the last five years, shows that our funding would have been
decreased in all but one year if limited to CPI. Given that our cost increases are mostly mandatory cost
increases for things like s alary and health benefits, insurance, utilities, and operating expenses, we would have
had to increase tuition far more each year to make up the funding gap had we not received state
appropriations.
CPI State Funding
June to June Change
FY20 0.6% FY21 5.6%
FY21 5.4% FY22 5.2%
FY22 9.1% FY23 6.6%
FY23 3.0% FY24 8.4%
FY24 3.0% FY25 6.0%
Finally, limiting the budget requests t o CPI, assumes that is what is necessary to keep up with inflation. We
rarely receive the amount of funding we request. If our request s are limited to CPI, and we are not funded at
that level, our purchasing power will decrease each year, and we will need to increase tuition and fees each
year, making access to Nebraskans even more difficult from a cost perspective.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EX PENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
24-25 25-26
2024-25
EXPENDITURES
2025-26
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel…………………………………… …..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements…………………….. .
TOTAL……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 16 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
State Treasurer
Prepared by:
(3) Jason Walters Date Prepared:
(4)
July 26, 2024 Phone:
(5)
402-471-2793
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
The State Treasurer’s Office doesn’t expect any fiscal impact from LB 16 to the office.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
24-25 25-26
2024-25
EXPENDITURES
2025-26
EXPENDITURES
Benefits………………………………...… …
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements………… …………...
TOTAL……………………………… .....
S1
0016Adopt the Nebraska EPIC Option Consumption Tax Act and terminate tax
provisions
__________________________________
EXPENDITURESEXPENDITURES
NUMBER OF POSITIONS
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1)
FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
University of Nebraska System
Prepared by:
(3)
Chris Kabourek Date Prepared:
(4)
07/26/2024 Phone:
(5)
(402) 472-7102
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2024 - 25 FY 2025 - 26
EXPENDITURES REVENUE
GENERAL FUNDS
0.00 0.00
CASH FUNDS
0.00 0.00
FEDERAL FUNDS
0.00 0.00
OTHER FUNDS
0.00 0.00
TOTAL FUNDS
0.00 0.00
EXPENDITURES REVENUE
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
Explanation of Estimate:
The University projects a limited fiscal impact from LB 16. Recognizing the importance of fiscal restraint, in recent years the University has limited its
budget requests to the State to align with inflationary increases. Rather than asking Nebraska taxpayers or students and families to pay more, the
University has managed rising costs by identifying business efficiencies, redirecting internal funds to the highest priorities, and controlling spending.
As a result of this strong fiscal discipline, the University has consistently delivered balanced budgets while keeping tuition affordable and accessible
for students.
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
Benefits..............................................
Operating...........................................
Travel.................................................
Capital outlay....................................
Aid...................................................
Capital improvements........................
TOTAL......................................
24 - 25
0
0
25 - 26
0
0
2024 - 25 2025 - 26 Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 16 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
NE Racing & Gaming Commission
Prepared by:
(3) Rita Pracht Date Prepared:
(4)
7/26/24 Phone:
(5)
531-310-4536
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
No fiscal impact
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
24-25 25-26
2024-25
EXPENDITURES
2025-26
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel……………………… ………………..
Capital outlay…………………...…………..
Aid……………………………………… …...
Capital improvements……………………...
TOTAL……………………………… .....