PREPARED BY: Keisha Patent
LB 366 DATE PREPARED: February 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
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS See below See below
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 366 creates the Legislative Economic Analysis Unit (Unit) in the Legislature, led by a Chief Economist who works at the direction of
the Speaker of the Legislature. The Unit is responsible for providing a regulatory impact analysis of (1) any major rule or regulation or
any proposed major rule or regulation; (2) existing rules and regulations; and (3) significant grants received from the federal
government or sources outside state government when requested by the Speaker or committee of jurisdiction.
The bill provides certain requirements for the contents of the regula tory impact analysis and reporting of any analysis completed. The
bill also provides requirements for information provided by any agency promulgating rules or regulations to the Unit for the purposes of
completing the regulatory impact analysis. LB 366 requires Legislative action to ratify a rule or regulation within 60 legislative days. The
bill includes intent language to extend the legislative session or for the Governor to call a special session t o approve proposed rules or
regulations. If the Legislature is not in session, the Governor may approve a rule or regulation if a statement is included explaining why
an emergency exists or why a federal requirement requires an earlier effective date; why the Legislature cannot be called into s ession
to approve such rule or regulation; and why the rules or regulation complies with emergency powers or is required by federal law.
The Legislature estimates costs of $581,677 in FY26 and $582,080 in FY27 for staffing the Unit, including the Chief Economist, two
professional staff, and one administrative position. There could be additional costs to the Legislature if special sessi ons are called for
purposes of approving rules or regulations for session expenses.
The Secretary of State estimates a one-time cost in FY26 of $25,000 related to IT costs for updating the current rules sy stem in the
office.
Section 2 of the bill provides that the Appropriations Committee of the Legislature, in determini ng annual appropriations, use a baseline
of 1%- 2% contribution of each agency budget for incorporating the cost of the analysis. This amount and fund type will v ary by agency.
However, for fiscal year 2024- 25, excluding capital construction appropriations, total agency budgets equal $5.4 billion General Funds ,
$5.5 billion cash funds, $6.2 billion federal funds, and $1.2 billion revolving funds. An amount equaling 1% of such totals would be $53.9
million General Funds, $55.3 million cash funds, $62.0 million federal funds, and $12.2 million revolving funds.
DAS provides an estimate of this provision relative to certain code agencies, using the 2% for those specific agencies. DHHS provides
an estimate of this provision as well. The language in the bill is unclear as to whether this 1%-2% would be used to pay the expenses of
the Unit only, or if the 1%-2% is to be set asi de within each agency budget relative to to tal costs, both of the Un it within the Legislature
and the agency’s own costs for compliance. We estimate that for most agencies 1%-2% of the total agency budget will exceed the
actual costs of compliance in the bill.
ADMINISTRATIVE SERVICES STATE BUDGE T DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 366 AM: AGENCY/POLT. SUB: Nebraska Legislative Council
REVIEWED BY: Ann Linneman DATE: 1 -22-2025 PHONE: (402) 471-4180
COMMENTS: The Legislative Council’s assessment of fiscal impact seems reasonable given the assumptions used.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 366 AM: AGENCY/POLT. SUB: Nebraska Secretary of State
REVIEWED BY: Ann Linneman DATE: 2 -5-2025 PHONE: (402) 471-4180
COMMENTS: The Nebraska Secretary of State’s assessment of fiscal impact seems reasonable given the assumptions
used.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 366 AM: AGENCY/POLT. SUB: Nebraska Depart ment of Health & Human Services
REVIEWED BY: Ann Linneman DATE: 2 -7-2025 PHONE: (402) 471-4180
COMMENTS: Concur with the Nebraska Department of Health and Human Services’ assessment of fiscal impact.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 366 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Dept. of Administrative Services (DAS) for ENTERPRISE
Prepared by:
(3) Sarah Skinner Date Prepared:
(4)
2/5/2025 Phone:
(5)
402-419-4229
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES ADDITIONAL
RESOUCES – DEPT
OF REVENUE
EXPENDITURES ADDITIONAL
RESOURCES – DEPT
OF REVENUE
GENERAL FUNDS
$57,057,771 $59,393,705
CASH FUNDS
$79,147,390 $460,400 $97,399,177 $345,000
FEDERAL FUNDS
$110,691,255 $210,743,568
REVOLVING
FUNDS
$6,976,984 $6,234,381
TOTAL FUNDS
$253,873,400 $460,000 $373,770,831 $345,000
Explanation of Estimate:
LB 366 creates the Legislative Economic Analysis Unit within the Legislature to provide independent and reliable
economic analysis. The Chief Economic is appointed by the Speaker of the Legislature and shall hire staff as
needed. The Speaker of the Legislature or a standing committee Chairperson can request the Economic Analysis
Unit determine whether a rule or regulation or proposed rule or regulation is a major rule or regulation. They also
will have the authority to review specified existing rules and regulations and nonmajor rules and regulations when
requested by a chairperson of a standing committee.
The Unit shall provide a regulatory impact analysis for existing rules and regulations and provide an impact
analysis of significant grants received by the federal government or other external sources when requested by
the Speaker or by a chairperson of a standing committee. The Unit shall provide notice that a rule or regulation
or proposed rule or regulation submitted to the Legislature was determined to be a major rule or regulation, and
it would not be in effect without a sixty-day legislative consideration or approval. The district court would have
jurisdiction to conduct de novo review if not approved by the Legislature. LB 366 authorizes the Unit to evaluate
or analyze existing rules and regulations and nonmajor rules and regulations by request of a chairperson of a
standing committee with subject matter jurisdiction.
Prior to filing with the Secretary of State, a state agency would be required to submit the rule or regulation to a
newspaper with circulation in the state and shall electronically submit to the Legislature and Chief Economist a
report that includes criteria specified in Section 8. The Unit shall provide a report on each major rule or regulation
by the end of the 15
th
legislative day after submission or publication. Agencies must cooperate with the Unit to
provide relevant information to the report.
A major rule or regulation shall not be submitted to the Secretary of State’s office before the Legislature enacts
a law ratifying the rule and regulation or the expiration of sixty legislative days without a final vote on the rule or
regulation. If the Governor believes a major rule or regulation should go into effect before sixty legislative days
pass, the Governor should call a special session, or the legislative session should be extended for this purpose.
The Governor may approve adoption of a major rule or regulation by publishing a statement based on Section
13 conditions. LB 366 operative date is three months after the adjournment of the Legislature.
The Unit’s annual appropriation would use a baseline of 1-2% contribution from the budget of each agency as
defined in 84- 901, which is shown in the table below for code agencies. The amounts reflected below represent
2% of the Governor's recommended base appropriation and does not include any reappropriation. Section 2 would include reappropriations, which cannot be definitively calculated at this time. However, the mid- biennium
reappropriation for fiscal year 2024-25 was $2,574,125,553.
FY25-26
Agency General Fund Cash Fund Federal Fund Revolving
Fund
Dept. of
Administrative
Services
$10,301,323
$4,596,227
$323,373,041
Dept. of
Agriculture
$6,711,428
$9,792,389
$4,614,717
$441,753
Dept. of
Banking &
Finance
$9,944,458
Dept. of
Correctional
Services
$368,067,188
$12,386,125
$2,296,659
$23,048,268
Dept. of
Economic
Development
$20,532,500
$145,970,712
$75,754,526
Dept. of
Environment
& Energy
$5,593,323
$41,085,507
$81,478,446
Fire Marshal’s
Office
$5,685,061
$5,901,353
$737,768
Dept. of
Health &
Human
Services
$2,085,349,598
$906,802,603
$5,123,865,527
Dept. of
Insurance
$13,265,486
$1,457,703
Dept. of Labor $764,157
$13,886,505
$49,593,278
Military Dept. N/A
N/A
N/A
N/A
Dept. of Motor
Vehicles
$58,365,831
$48,446
Dept. of
Natural
Resources
$10,708,426
$92,045,676
$2,207,789
Dept. of
Revenue
$193,009,589
$1,259,406,970
Dept. of
Transportation
$1,335,622,664
$159,987,866
State Patrol $90,739,673
$32,210,983
$5,201,064
$1,986,146
Dept. of
Veterans’
Affairs
$55,426,293
$16,083,992
$27,318,958
Total $2,852,888,559
$3,957,367,481
$5,534,562,747 $348,849,208
2% $57,057,771
$79,147,390
$110,691,255
$6,976,984
FY26-27
Agency General Fund Cash Fund Federal Fund Revolving
Fund
Dept. of
Administrative
Services
$10,597,979
$4,632,646
$285,871,082
Dept. of
Agriculture
$6,711,428
$10,219,422
$4,675,549
$448,289
Dept. of Banking
& Finance
$9,944,458
Dept. of
Correctional
Services
$377,429,061
$10,886,125
$2,296,659
$23,347,190
Crime
Commission
$15,733,558
$1,906,825
$20,375,435
Dept. of
Economic
Development
$20,610,400
$116,086,576
$75,817,261
Dept. of
Environment &
Energy
$5,593,323
$41,371,717
$81,878,528
Fire Marshal’s
Office
$5,685,061
$6,181,163
$790,643
Dept. of Health &
Human Services
$2,158,523,794
$907,403,838
$5,092,570,652
State Historical
Society
$5,286,038
$2,934,012
$840,921
Dept. of
Insurance
$13,265,486
$1,457,703
Dept. of Labor $789,452
$13,927,516
$50,453,684
Military Dept. N/A N/A N/A N/A
Dept. of Motor
Vehicles
$47,117,160
$48,446
Dept. of Natural
Resources
$10,758,426
$92,068,419
$2,238,087
Dept. of Revenue $204,212,726
$1,303,015,234
Dept. of
Transportation
$1,349,358,456
$105,668,702
State Patrol $90,739,673
$32,235,941
$5,495,476
$2,052,504
Dept. of Veterans’
Affairs
$57,014,347
$907,403,838
$5,092,570,652
Total $2,969,685,266
$4,869,958,832
$10,537,178,398
$311,719,065
2% $59,393,705 $97,399,177 $210,743,568 $6,234,381
The impacted code agencies would need to determine if the expenditures were eligible for Federal funding,
adjust/reduce programs and review funding streams because of the required contributions. For cash and
revolving fund types there would need to be a corresponding fund transfer equal to the program’s appropriation.
For example, the Nebraska Department of Transportation (NDOT) without an increase in Highway Cash Fund
appropriation would be forced to reduce the annual program of highway construction even if funds were available.
Also, NDOT would include these increased expenditures and adjust the variable rate accordingly to generate
revenue. It is estimated that an increase of approximately two cents to the motor fuels tax setting would be
needed if NDOT’s annual contribution was set at $28 million annually. Additionally, the Dept. of Revenue would need to hire 3.0 FTE Revenue Economists to implement LB 366. This
bill requires a one- time REMI TAX PI model cost of $110,000 and $40,000 for annual maintenance. See the
request for additional resources above.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
A29511 Revenue Economist 3 3 $222,100 $229,300
Benefits………………………………...…… $73,300 $75,700
Operating…………………………...………. $150,000 $40,000
Travel………………………………………..
Capital outlay…………………...………….. $15,000
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… ..... $460,400 $345,000
LB (1) 366 FISCAL NOTE 2025
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
State Agency or Political Subdivision Name:(2) Department of Health and Human Services
Prepared by: (3) John Meals Date Prepared 2-7-24 Phone: (5) 471-6719
FY 2025-2026 FY 2026-2027
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS $19,000,000 $19,000,000
CASH FUNDS $9,000,000 $9,000,000
FEDERAL FUNDS $47,000,000 $47,000,000
OTHER FUNDS
TOTAL FUNDS $75,000,000 $0 $75,000,000 $0
Return by date specified or 72 hours prior to public hearing, whichever is earlier.
Explanation of Estimate:
LB366 establishes the Legislative Economic Analysis Unit within the legislature to review rules and regulations
proposed by state agencies that are considered to be major rules. A major rule is one that has an economic
impact of more than $1 million in a five-year period. Many rule changes within the Department of Health and
Human Services (DHHS) would meet that criterion.
As written, LB366 would appropriate as a baseline a one -percent to two-percent contribution from the budget
of DHHS to the established Legislative Economic Analysis Unit. In the current state fiscal year (SFY) 2025 ,
DHHS has a baseline budget of approximately $7.5 billion. If this bill were to be implemented, DHHS would
lose an estimated $75 - $150 million of its appropriation.
MAJOR OBJECTS OF EXPENDITURE
PERSONAL SERVICES:
NUMBER OF POSITIONS 2025-2026 2026-2027
POSITION TITLE 26-26 26-27 EXPENDITURES EXPENDITURES
Benefits...............................................................................................................................
Operating............................................................................................................................
$75,000,000 $75,000,000
Travel..................................................................................................................................
Capital Outlay.....................................................................................................................
Aid......................................................................................................................................
Capital Improvements.........................................................................................................
TOTAL............................................................................................................
$75,000,000 $75,000,000
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 366 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Legislative Council
Prepared by:
(3) Shelley Reed Date Prepared:
(4)
1/21/2025 Phone:
(5)
402-471-2226
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
581,677 582,080
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
581,677 582,080
Explanation of Estimate:
LB366 would create the Legislative Economic Analysis Unit. Salary and benefits are estimated for a Chief
Economist position, which would be a pay grade M as a d ivision director. As a newl y created division, it’s
unclear what level of support positions would be needed. The refore, the staff salaries and benefits are
estimated for one (1) Administrative position (pay grade E), and (two 2) professional positions (pay grade H).
Operating expenses are estimated for printing, office supplies, OCIO charges, etc. The Capital outlay charge
in the first year would be for computer equipment and furniture for four (4) employees. This amount could be
slightly higher due to increases of pricing for laptops and furniture.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Chief Economist 1 1 157,901 162,638
Staff 3 3 247,486 254,910
Benefits………………………………...…… 152,395 157,877
Operating…………………………...………. 6,655 6,655
Travel………………………………………..
Capital outlay…………………...………….. 17,240 0
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… ..... 581,677 582,080
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 366 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Secretary of State
Prepared by:
(3) Joan Arnold Date Prepared:
(4)
1-29-2025 Phone:
(5)
402-471-2384
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
$22,500
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
$22,500
Explanation of Estimate:
LB 366 requires an agency before submitting a “covered” rule or regulation to the Secretary of State for
publication to electronically submit a report to the Legislature containing a copy of the rule or regulation, a
general statement regarding the rule or regulation, and other required items.
In order to include this process in the Rules and Regulations promulgation system, an additional new workflow
process will be needed. The IT vendor that developed the current Rules system estimates that the creation of
this new workflow will have a one- time cost of $22,500.
_____________________________________________________________________________________________________ _
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…………………………...………. $22,500
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL ………………………………... .. $22,500