PREPARED BY: Suzanne Houlden
LB 400 DATE PREPARED: March 04, 2025
PHONE: 402-471-0057
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 f ollowing the Legislative Fiscal Analyst Estimate.
The intent of LB 400 is to provide for compensation under the Nebraska Workers’ Compensation Act for cancers experienced by
firefighters. With the passage of LB 400, cancer that results in either temporary or permanent disability or death becomes an
occupational disease and is compensable as such. The bill requires the presumption that cancer experienced by an active or retired
firefighter arose out of the course of employment. Retired firefighters would be eligible only for the medical benefits and must be
diagnosed within 60 months of retiring.
The State of Nebraska currently has 75 public servants (airport firefighters and state fire marshal staff) that could meet the definition of
firefighters, investigators, and instructors. The Department of Administrative Services (DAS) Risk Management division uses data
provided by the National Institute for Occupational Safety and Health, and by the Social Se curity Administration, to estimate the
potential fiscal impact to the State of Nebraska. The chart below illustrates the potential expenditures , assuming all 75 firefighters were
to receive all benefits:
Benefit type Annual Estimate
Workers' Comp indemnity $40,300
Cancer treatment $150,000
Care - in-home or facility (avg) $150,000
Total $340,300
While DAS acknowledges that LB 400 is likely to have a fiscal impact, the exact amount, and timing, are unable to be determined at this
time. The DAS – Risk Management Workers’ Compensation Program is a Revolving fund program that is funded by an annual
assessment to state agencies, boards and commissions, the University and State Colleges. Should expenses related to LB 400 exceed
available Revolving fund appropriations , DAS would request an increase to their Revolving fund appropriation, as either a deficit
request or a new biennium request.
Those expenses would then be charged back to impacted agencies, which could result in requests for increased appropriations for the
funds used by those agencies.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 400 AM: AGENCY/POLT. SUB: Department of Administrative Services (DAS)
REVIEWED BY: Ryan Walton DATE: 2/25/2025 PHONE: (402) 471-4174
COMMENTS: No basis to disagree with the DAS’s assessment of fiscal impact from LB 400.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 400 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Department of Administrative Services (DAS) – Risk
Management - ENTERPRISE
Prepared by:
(3) Sarah Skinner Date Prepared:
(4)
1/24/25 Phone:
(5)
402-419-4229
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
$204,822 $204,822
CASH FUNDS
$87,096 $87,096
FEDERAL FUNDS
$35,684 $35,684
REVOLVING
FUNDS
$12,698 $12,698
REVOLVING
FUNDS – DAS RISK
$340,300 $340,300 $340,300 $340,300
TOTAL FUNDS
$680,600 $340,300 $680,000 $340,300
Explanation of Estimate:
LB 400 proposes to amend the Nebraska Workers’ Compensation Act to include cancer of a firefighter developed
in the course of employment from exposure to carcinogens. The bill requires a rebuttable presumption that cancer
experienced by a firefighter, including a retired firefighter, arose out of the course of employment. A retired
firefighter filing a claim would not be entitled to receive any compensation for such cancer under the Nebraska
Workers' Compensation Act other than medical benefits and must be diagnosed within sixty months of retiring.
The State of Nebraska currently has 75 public servants (airport firefighters and state fire marshal staff) that could
meet the definition of firefighters, investigators, and instructors. According to a National Institute for Occupational
Safety and Health study, firefighters have a 9% higher risk of being diagnosed with cancer and a 14% higher risk of
dying from cancer than the general public. In addition, cancer caused 70 percent of the line-of-duty deaths for
career firefighters in 2016.
An example of one of these public servants would be a 30-year-old with a 52-year life expectancy per the Social
Security Administration actuarial life table: 52 years X 52 weeks per year = 2,704 weeks remaining for life
expectancy. Using a $28.91 per hour average hourly rate X 40 hours per week equals $1 ,156 average weekly
wage. At two -thirds Total Permanent Disability (TPD) the rate would be $775 per week. The worker with cancer
would receive $775 per week for the remaining life expectancy X 2,704 weeks for a total indemnity benefit of
$2,095,600. In addition, the American Association of Retired Persons (AARP) estimates the average cancer
treatment costs to be $150,000. Finally, the cost of in-home or long-term care ranges from $25,000 to $250,000 per
year. There would be increasing costs over the estimated 52- year life expectancy.
Total possible expense for one person diagnosed with cancer c ould be $2 ,095,600 for total indemnity, $150,000 for
cancer treatment per year including maintenance treatments and an additional $25,000 to $250,000 per year if they
required in-home care or reside in a long-term care facility.
The DAS - Risk Management Workers’ Compensation P rogram is a revolving fund program and is funded by an
annual assessment that includes all agencies, boards and commissions, the University and state colleges. Any
increase in costs over time would increase the amount assessed and would require additional revolving fund
appropriation.
Using the information above assumptions were made to calculate an annual Enterprise and DAS Risk
Management fiscal impact by fund type.
Workers’ Compensation indemnity
benefits ($775 X 52 weeks)
$40,300
Cancer Treatment – ongoing &
maintenance
$150,000
Care – in home or facility (average) $150,000
Total $340,300
The table below summarizes the impact of the estimated increase in expenditures required by an increase in the
assessment by fund type. The allocation by fund type is based on a five -year (2020- 2024) average of the payment
of previous workers’ compensation assessments.
Fund Type Estimated
Expenditures
General Fund $204,822
Cash Fund $87,096
Federal Fund $35,684
Revolving Fund $12,698
Total $340,300
LB 400 is likely to have a fiscal impact as estimated by the figures above, but the exact amount is not determinabl e
at this time.
_____________________________________________________________________________________________________ _
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…………………………...………. $680,600 $680,600
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… ..... $680,600 $680,600