PREPARED BY: Shelly Glaser
LB 68 DATE PREPARED: July 31, 2024
PHONE: 402-471-0052
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 See Below See Below See Below See Below
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.
LB68 would create the Aid to Municipalities Act which would be administered by the Nebraska Departmen t of Economic Development
(DED). This act would provide state-aid to municipalities for infrastructure projects such as:
1) Solid waste management facilities;
2) Waste, storm, and water treatment plants;
3) Water distribution facilities;
4) Hazardous waste disposal systems;
5) Resource recovery systems;
6) Airports/Port facilities;
7) Buildings/capital equipment used by municipalities to provide constituent services;
8) Convention/tourism facilities; and
9) Mass transit/parking facilities, etc.
The grant funds are to be used excl usively for:
1) The acquisition, construction, and equipping of infrastructure projects; or
2) Paying the principal, interest, premiums, and costs of the issuance on bonds which had been issued by the municipality
for infrastructure projects.
LB68 would establish the Aid to Municipalities Fund, consisting of money from Legislative transfers, gifts, grants, or bequest s from any
source. This fund shall be used to pay grants for approved municipality applicants, with a cap of ten million dollars per approved grant.
The DED would manage this fund, review the applicants, and award the grants.
Additionally, LB68 would set the minimum average wholesale price of gasoline at $2.75 per gallon, beginning on and after January 1,
2025. This average wholesale price is used on April 1
st
and October 1
st
each year in the calculation process of the wholesale gas tax
charged per gallon. This bill would set a requirement t hat 25% of the fuel tax proceeds would be credited to the new Aid to
Municipalities Fund, with the remainin g 75% to the Nebraska Department of Transportation (NDOT) Highway Trust Fund. The bill
would require NDOT to spend at least 35 percent on paying for surface transportation projects, as defined by 39-2702 (Build Nebraska
Act), that have been identified by NDOT to be the highest priority.
Expenditures:
If the DED were to award a grant of $10,000,000 in Cash Funds in both FY24/25 and again in FY25/26, there w ould be Cash Fund
expend iture in each fiscal year . The DED would need a Cash Fund appropriation for these expenditures.
Revenues:
The minimum average wholesale price of gasoline, is one component used in the calculation of Nebraska’s gas tax rate per gallon.
This average wholesale price of gasoline is calculated twice yearly, on April 1
st
and October 1
st
, utilizing the average wholesale prices
from the previous six -month period. This price, multiplied by 5%, is used in t he setting of the gas tax. Setting the minimum average
wholesale price of gasoline at $2.75 per gallon, would be higher than the curr ently set rates the last six months (January – June 2024)
average wholesale price was $2.49 per gallon; and the next six months (July – December 2024) was $2.66 per gallon.
The Nebraska Department of Environment and Energy has indicated no fiscal impact. There is no basis to disagree with this
estimation.
Due to time constraints, neither the Nebraska Department of Economic Development, nor N DOT was able to provide a timely estimate
to meet the deadline for publishing the fiscal note prior to the hearing. Thi s fiscal note will be revised to include any additional
information received.
The requirement to spend at least 35% of wholesale tax proceeds on surface transporation projects could jeopardize fenderal funding.
NDOT would see a decrease in rev enue if the wholesale tax is set at the new minimum under the bill $2.75 per gallon. This is due to
25% being credited to the Ai d to Municipalities Fund. If the tax rate is $2.75 per gallon, NDOT would receive the equivalent of $2.06 per
gallon. To maintain the funding to NDOT at the current level, $2.66 per gallon, the wholesale tax rate would need to be set at $3.55 per
gallon. The DED would also receive an increase in revenue to the Aid to Municipalities Fund from the gas tax, however this amount is
indeterminate at this time.
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 68 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Environment and Energy
Prepared by:
(3) Kevin Stoner Date Prepared:
(4)
July 29, 2024 Phone:
(5)
402 471-2186
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……………………………… .....