PREPARED BY: Keisha Patent
LB 130 DATE PREPARED: March 10, 2025
PHONE: 402-471-0059
Revision: 00
FISCAL NOTE
LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS See below
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS See below
TOTAL FUNDS
Any Fiscal Notes received from state agencies and political subdivisions are attached f ollowing the Legislative Fiscal Analyst Estimate.
LB 130 amends section 77-4602 regarding automatic transfers to the Cash Reserve Fund from the General Fund if actual fiscal year
net receipts exceed estimated net receipts (certified forecast). LB 130 reinstates a similar formula to that previously enacted in LB 638
(2019), which was in effect for FY2023 -24.
Current forecasted net receipts for FY25 are $100 million more than certified forecast (certification in October of 2024 under 77-
4603(2)) . Under current law, this $100 million is to be credited to the Cash Reserve Fund.
Under this bill, this $100 million is the amount calculated under subsection (3)(a)(i). The calculation in subsection (3)(a)(ii) is estimated
at this time to be a negative number. Under subsection (3)(b), $100 million would be transferred to the Cash Reserve Fund at the
beginning of FY2025-26.
However, the language in subsection (3)(d) operates as a cap on the amount that would be automatica lly transferred to the Cash
Reserve Fund, reducing the transfer so that the balance in the Cash Reserve Fund does not exceed 16% of total budgeted General
Fund expenditures, excluding any reappropriated amounts or encumbrances. For purposes of this fiscal note, we utilize the General
Fund new appropriations for FY2025-26 on the current General Fund financial status ($5.569 billion) and the estimated balance of the
Cash Reserve Fund on July 1, 2025 ($877.2 million). The estimated balance in the Cash Reserve Fund on July 1, 2025 , at this point in
time, is 15.75% of FY2025- 26 General Fund new appropriations. The transfer from the General Fund would be reduced from $100
million to $13.9 million, a reduction of $86.1 million, so the balance in the Cash Reserve Fund does not exceed 16% of FY2025-26
General Fund new appropriations. The $86.1 million would be retained in the General Fund.
At this point in time, there is no fiscal impact for future fiscal years as there is no estimate that actual revenue would exceed the
revenue forecast and a certified forecast under 77-4601 is not completed for each fiscal year until the beginning of such year.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 130 AM: AGENCY/POLT. SUB: State Treasurer
REVIEWED BY: Ryan Yang DATE: 1/17/2025 PHONE: (402) 471-4178
COMMENTS: The State Treasurer assessment of no fiscal impact from LB 130 appears reasonable.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 130 AM: AGENCY/POLT. SUB: Department of Revenue
REVIEWED BY: Ryan Yang DATE: 3/10/2025 PHONE: (402) 471-4178
COMMENTS: The Department of Revenue assessment of no fiscal impact from LB 130 appears reasonable.
LB 0130 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 03/07/2025 Phone: 471-5896
FY 2025-2026 FY 2026-2027 FY 2027-2028
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $ 0 $ 0 $ 0
Cash Funds
Federal Funds
Other Funds
Total Funds $ 0 $ 0 $ 0
Major Objects of Expenditure
25-26 26-27 27-28 25-26 26-27 27-28
Class Code Classification Title FTE FTE FTE Expenditures Expenditures Expenditures
Benefits………………………………………………………………………………………………………….
Operating Costs………………………………………………………………………………………………….
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………...
Capital Improvements…………………………………………………………………………………………...
Total…………………………………………………………………………………………………………….
LB 130 amends Neb. Rev. Stat. § 77- 4602(3)(a) to require the Tax Commissioner to determine the following with
15 days after the end of each fiscal year:
• (i) Actual General Fund net receipts for the most recently completed fiscal year minus estimated General
Fund net receipts for such fiscal year as certified under §§ 77- 4601 and 77-4603; and
• (ii) 50% of the product of actual General Fun net receipts for the most recently completed fiscal year times
the difference between the annual percentage increase in the actual General Fund net receipts for the most
recently completed fiscal year and the average annual percentage increase in the actual General Fund net
receipts over the 20 previous fiscal years, excluding the year in which the annual percentage change in
actual General Fund net receipts is the lowest.
If the number under section 77- 4602(3)(a)(i) is a positive number, the Tax Commissioner must immediately
certify the greater of the two numbers determined under subdivision (3)(a) to the Director of Administrative
Services. The State Treasurer must transfer the certified amount from the General Fund to the Cash Reserve Fund
upon certification by the director. The transfer must be made as follows:
• (i) An amount equal to the amount determined under subdivision (3)(a)(i) must be transferred
immediately; and
• (ii) The remainder, if any, must be transferred by the end of the subsequent fiscal year.
If the required transfer causes the Cash Reserve Fund balance to exceed 16% of the total budgeted General Fund
expenditures, excluding any reappropriated amounts or encumbrances, for the current fiscal year, such transfer
must be reduced so that the balance of the Cash Reserve Fund does not exceed such amount.
Nothing in Neb. Rev. Stat. § 77- 4602(3), as amended by LB 130, prohibits the balance in the Cash Reserve Fund
from exceeding 16% of the total budgeted General Fund expenditures, excluding any reappropriated amounts or
encumbrances, each fiscal year if the Legislature determines it is necessary to prepare for and respond to
budgetary requirements which may include, but are not limited to, capital construction projects and responses to
emergencies.
LB 130 is estimated to have no impact on the General Fund revenues and no cost to the Nebraska Department of
Revenue. Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 130 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
State Treasurer
Prepared by:
(3) Jason Walters Date Prepared:
(4)
January 15, 2025 Phone:
(5)
402-471-2793
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
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 130 to the office.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Benefits………………………… ……...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… .....