PREPARED BY: Bill Biven, Jr.
LB 411 DATE PREPARED: March 10, 2025
PHONE: 402-471-0054
Revision: 01
Revised to reflect updated agency response 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 $95,384,500 SEE BELOW
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $95,384,500 SEE BELOW
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB411 amends §79- 8,114 to change provisions relating to eligibility for retention grants.
The Nebraska Department of Education (NDE) will distribute all retention grants automatically to the school district employing the
eligible teacher. The district will then distribute the grant funds to that teacher.
Prior to July 1, 2025:
• a retention one grant of $2,500 if the teacher has signed a contract to complete that teacher's second complete school year of
full-time employment
• a retention two grant of $2,500 if the teacher has signed a contract to complete that teacher's fourth complete school year of
full-time employment as a teacher
• a retention three grant of $2,500 if the teacher has signed a contract to complete that teacher's sixth complete school year of
full-time employment as a teacher
Beginning July 1, 2025:
• a retention grant of $2,500 per school year for a teacher's first through sixth school year of full -time employment teaching at a
Nebraska school
• a retention grant of $3,000 per school year for a teacher's seventh through fifteenth school year of full -time employment
teaching at a Nebraska school
• a retention grant of $4,000 per school year for a teacher's sixteenth & each year thereafter of full-time employment teaching at
a Nebraska school
A high- need retention grant of $5,000 if on or after July 1, 2025, a teacher:
• obtains an endorsement in special education, mathematics, science, technology, or dual-credit
• signs a contract to complete a year of full-time employment as a teacher to teach in that endorsement area at a Nebraska
school
A teacher can only obtain one high-need grant during the duration of their teacher career in Nebraska.
Since an emergency exists, this bill takes effect when passed & approved according to law.
FISCAL IMPACT:
For FY2025-26, NDE estimates that there are twenty -seven thousand four hundred & eighty-eight retention grant eligible teachers in
Nebraska.
Using FY2024-25 data, NDE estimates that there were one thousand one hundred seventy-eight teachers who were eligible (on or after
July 1, 2025) for the high- needs grant.
For FY2026-27, the estimate would be less than FY2025-26 but cannot be determined as there isn’t a way to estimate the number of
new & or retiring teachers & also how many of those new teachers will also be eligible for the high-need grant.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 411 AM: AGENCY/POLT. SUB: Department of Education
REVIEWED BY: Kimberly Burns DATE: 03/10/2025 PHONE: (402) 471-4171
COMMENTS: The Department of Education’s estimate of fiscal impact from LB 411 appears reasonable based on the
updated assumptions applied.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 411 AM: AGENCY/POLT. SUB: Nebraska Public Employees Retirement Systems
REVIEWED BY: Kimberly Burns DATE: 02/02/2025 PHONE: (402) 471-4171
COMMENTS: Concur with the Nebraska Public Employees Retirement Systems’ assessment of no fiscal impact
resulting from LB 411.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 411 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Education
Prepared by:
(3) Lane Carr Date Prepared:
(4)
1.29.25 Phone:
(5)
402.419.3012
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
$95,384,500 $95,384,500
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
$95,384,500 $95,384,500
Explanation of Estimate:
LB411 would amend the Teacher Recruitment and Retention Act to beginning July 1, 2025, distribute funding
to school districts employing eligible teachers. Eligibility and amounts are extended to the following:
• Teachers in their first thru sixth years - $2,500 each year
• Teachers in their seventh thru fifteenth years - $3,000 each year
• Techers with 16 or more years of service - $4,000 each year
Additionally, high- need retention grants of $5,000 are provided to teachers who obtain an endorsement in
special education, mathematics, science, technology, or dual credit on or after July1, 2025. Such high-need
retention grants are only awarded once.
Breakdown of Teachers by Years of Service :
Teachers Public/ESU Nonpublic Total Number Amount
1-6 Years 7024 737 7761 $19,402,500
7-15 Years 7966 850 8816 $26,448,000
16+ Years 9692 1219 10911 $43,644,000
Total: $89,494,500
High Need:
For the 2024-25 school year, there were 1,178 teachers who were eligible for the high- needs grant. The NDE
estimates at least this number each year. $5,000 x 1,178 = $5,890,000
_____________________________________________________________________________________________________ _
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…………………………………………... $95,384,500 $95,384,500
Capital improvements……………………...
TOTAL……………………………… ..... $95,384,500 $95,384,500 Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 411 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Public Employees Retirement Systems (NPERS)-
085
Prepared by:
(3) Teresa Zulauf Date Prepared:
(4)
1/23/25 Phone:
(5)
402-471-7745
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
0 0 0 0
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
0 0 0 0
Explanation of Estimate:
LB 411 – Changes to Teacher Recruitment and Retention Act.
No fiscal impact to NPERS Agency 085 operations expenditures.
_____________________________________________________________________________________________________ _
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……………………………… .....