PREPARED BY: John Wiemer
LB 234 DATE PREPARED: March 19, 2025
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 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS ($148,000) ($201,000)
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS ($148,000) ($201,000)
Any Fiscal Notes received from state agencies and political subd ivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 234 amends the Urban Redevelopment Act.
The bill amends section 77-6906 under the Act to add any federal census tract directly adjacent to an area described in subdivision (1)
of the section. Subdivision (1) is the current definition in statute of economic redevelopment area under the Act. The current definition of
economic redevelopment area under the Act is an area in the State of Nebraska in which the average rate of unemployment in the area
is at least 150% of the average rate of unemployment in the state and the average poverty rate in the area is 20% or more for the
federal census tract in the area.
The Department of Revenue (DOR) estimates the following decrease to General Fund revenues as a result of the bill:
• FY26: ($148,000)
• FY27: ($201,000)
• FY28: ($205,000)
• FY29: ($209,000)
The DOR estimates minimal costs to it as a result of the bill.
There is no basis to disagree with these estimates by the DOR.
The Department of Economic Development estimates the provisions of the bill can be accomplished with current resources. There is no
basis to disagree with this estimate.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 234 AM: AGENCY/POLT. SUB: Department of Revenue
REVIEWED BY: Ryan Yang DATE: 3/18/2025 PHONE: (402) 471-4178
COMMENTS: No basis to disagree with the Department of Revenue assessment of fiscal impact from LB 234.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 234 AM: AGENCY/POLT. SUB: Department of Economic Development
REVIEWED BY: Ryan Yang DATE: 2/28/2025 PHONE: (402) 471-4178
COMMENTS: Concur with the Department of Economic Development assessment of no fiscal impact from LB 234.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 234 AM: AGENCY/POLT. SUB: Lancaster County, Nebraska
REVIEWED BY: Ryan Yang D ATE: 1/24/2025 PHONE: (402) 471-4178
COMMENTS: No basis to disagree with the Lancaster County, Nebraska assessment of minimal fiscal impact from LB 234.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF A GENCY & POLT. SUB. RESPONSE
LB: 234 AM: AGENCY/POLT. SUB: Nebraska Association of County Officials
REVIEWED BY: Ryan Yang DATE: 1/22/2025 PHONE: (402) 471-4178
COMMENTS: No basis to disagree with the Nebraska Association of County Officials assessment of no fiscal impact
from LB 234.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 234 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Department of Economic Development
Prepared by:
(3) Dave Dearmont Date Prepared:
(4)
2/26/2025 Phone:
(5)
(402) 471-3777
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:
LB234 establishes a new definition of Economic Redevelopment Area (ERA). These redevelopment areas will
continue to include all areas with an average rate of unemployment at least one hundred fifty percent of the
average state rate of unemployment during that same period, that also have a poverty rate of twenty percent or
more for the federal census tract, both as measured by the United States Bureau of the Census. The bill would
extend this definition to include all census tracts that are directly adjacent to the previously defined
redevelopment areas.
The programs impacted by the definition change proposed in LB234 would change eligibility for programs that
include the ImagiNE Nebraska Act, the Sports Arena Financing Assistance Act, the Nebraska Innovation Hub
Act, the CHIEF Act, the Urban Redevelopment Act, the Business Innovation Act, and the Poverty Elimination
Plan Act.
By extending the definition to include adjacent census tracts, the current 74 census tracts included in ERAs,
LB234 would add an additional 94 census tracts to the ERA designation. The current ERAs have a median
income of $46,019. Under the new definition, the median income in ERAs would increase to $56,086, or by
21.9%.
The provisions of LB234 can be accomplished with current DED resources.
____________________________________________________________________________________________________ _
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……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 234 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Lancaster County, Nebraska
Prepared by:
(3) Dennis Meyer Date Prepared:
(4)
1/21/2025 Phone:
(5)
402-441-6869
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:
Given that Lancaster County's unemployment rate is comparable to the state average, it is unlikely that the county will see
significant new areas qualify as "economic redevelopment areas" under the revised definition. As a result, the direct fiscal
impact is expected to be minimal.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJO R 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……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 234 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Association of County Officials
Prepared by:
(3) Elaine Menzel Date Prepared:
(4)
1/21 /2025 Phone:
(5)
402.434.5660
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:
LB234 would redefine the economic redevelopment area under the Urban Redevelopment Act to include any
census tract directly adjacent to an area in the state in which the average rate of unemployment and average
poverty rate are provided within the definition.
There is expected to be no fiscal impact.
_____________________________________________________________________________________________________ _
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……………………………… .....
LB 0234 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 03/17/2025 Phone: 471-5896
FY 2025-2026 FY 2026-2027 FY 2027-2028
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds ($ 148,000) ($ 201,000) ($ 205,000)
Cash Funds
Federal Funds
Other Funds
Total Funds ($ 148,000) ($ 201,000) ($ 205,000)
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 234 expands the definition of economic redevelopment area under the Urban Redevelopment Act to include
any federal census tract directly adjacent to an area that met the original definition, which is an area with an
unemployment rate of at least 150% of the state average and a poverty rate of at least 120% of the federal census
tract in the area.
The estimated fiscal impact of LB 234 to the General Fund revenues would be as follows:
Fiscal Year
General Fund
Revenues
FY 2025-26 ($ 148,000)
FY 2026-27 ($ 201,000)
FY 2027-28 ($ 205,000)
FY 2028-29 ($ 209,000)
It is estimated that this bill will have minimal costs to the Department of Revenue.
The operative date for this bill is three months after adjournment of the Legislature.