PREPARED BY: Scott Danigole
LB 297 DATE PREPARED: January 29, 2025
PHONE: 402-471-0055
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
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS ($22,000,000) ($22,000,000)
TOTAL FUNDS ($22,000,000) ($22,000,000)
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 297 amends provisions of the Employment Security Law.
Section 1(5) reduces the state unemployment insurance tax rate for category twelve to .48 for tax year 2025.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 297 AM: AGENCY/POLT. SUB: Department of Labor
REVIEWED BY: Ryan Yang DATE: 1/30/2025 PHONE: (402) 471-4178
COMMENTS: The Department of Labor assessment of fiscal impact from LB 297 appears reasonable.
Technical Note: The Department fiscal note estimates that there will be a reduction of $44 million in Unemployment
Insurance tax to the Nebraska Department of Labor Treasury, also know as the UC Trust. This trust fund is not held by the
State, but by the federal government. The Nebraska Department of Labor draws from this fund into its own bank account,
and then uses those funds to pay benefits. LB 297 would not result in a loss of state revenue, but a loss in unemployment
insurance benefits.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 297 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Department of Labor
Prepared by:
(3) Rea Easton Date Prepared:
(4)
1/27/2025 Phone:
(5)
402-416-6809
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
TRUST FUNDS
TOTAL FUNDS
Explanation of Estimate:
The immediate reduction of the category twelve rate to 0.48 in 2025 will reduce the amount of
collected tax contributions from employers by approximately $44 million dollars.
_____________________________________________________________________________________________________ _
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……………………………… .....