PREPARED BY: Suzanne Houlden
LB 417 DATE PREPARED: February 11, 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 following the Legislative Fiscal Analyst Estimate.
LB 417 codifies the Nebraska Promise Program scholarship that the University of Nebraska system is alrea dy providing. It would also
expand the scholarship to the Nebraska State College System and to Nebraska’s Community Colleges under a newly created College
Promise Act. Both programs provide for 100% tuition waivers for students meeting certain conditions. LB 417 also proposes to change
provisions relating to the Quality Education Accountability Act.
To be eligible for the Nebraska Promise Program , a student must:
(a) Be a Nebraska resident;
(b) Have a family income of less than sixty-five thousand dollars per year, or be eligible for a Federal Pell Grant; and
(c) Be registered as a full-time undergraduate student at any University of Nebraska campus, and taking twelve credit hours per
academic semester.
To be eligible for the College Promise Act, a student must meet the same residency and income requirements, but mus t be enrolled at
a state or communi ty college. F or both programs, tuition waivers are applied after Federal Pell Grant funds and other grants and
scholarships are subtracted. Both programs have academic requirements for maintaining eligibility.
LB 417 provides for reimbursement to the State College System and to the Community Colleges only. It creates the College Promise
Fund; requires that the Coordinating Commission for Postsecondary E ducation (CCPE) certify the tuition amounts waived by the State
Colleges and Community Colleges by June 1 of each year (for the preceding school year) and subm it that certification to the State
Treasurer and; provides that the certified amounts be transferred from the General Fund to the College Promise Fund in ten equal
monthly payments beginning in September of the year in which such certifi cation was made. The CCPE will then, from the amount
appropriated by the Legislature, make distributions to each community college and state college in an amount equal to the total value of
all waivers provided by each. Those payments will also be made in ten equal amounts over a ten-month period beginning in
September. If the amount appropriated does not equal the total value of all waivers pursuant to the College Promise Act, a community
college or state college shall not provide additional waivers pursuant to the act in any future school year until the community college or
state college has been fully reimbursed for the value of the tuition waivers previously provided pursu ant to the College Promise Act.
The University of Nebraska (NU) estimates its waivers to cost $7,123,766 each year of the upcoming biennium. They explain that while
the program is currently administered by the University based on available resources and institutional priorities, codifying it into statute
would remove NU over sight and flexibility, transferring control to the legislature without a dedicated funding mech anism. This shift
would limit NU’s ability to adjust cost thresholds, eligibility criteria, or academic requirements in response to financial and enrollment
changes. Instead, any modifications would require legislative action, potentially delaying necessary adjustments , creating administrative
inefficiencies, and potentially impacting students already in the program. The Fiscal Office has no basis to disagree with this analysis.
The fiscal impact to the State College System (NSCS) and the Community Colleges (CCs) are incorporated into the fiscal note provided
by CCPE. The estimate for Aid awarded for FY26 totals $1,772,377, and would be reimbursed to the applicable NSCS and CC
campuses in FY27. The Aid to be awarded in FY27, and reimbursed in FY28, is estimated at $1,805,965. The operational cost to
administer the program is estimated at $9,600 for FY26 and $10,000 for FY27.
LB 417 states intent for the Legislature to appropriate General Funds for the College Promise Act. It is assumed that the appropriations
bill would appropriate funding for admi nistrative expenses starting FY26, and Aid appropriations starting FY27.
CONTINUED ON PAGE 2 LB 417
PAGE 2
Technical notes: Due to the timing of appropriation cycles compared to the certification and reimbursement cycles, it is almost certain
that the amounts appropriated would not equal the amounts certified. If the appropriation is less than the certified amount, it may be
difficult to fairly process partial reimbursements among the impacted campuses. Existing awardees could have their subsequent
waivers nullified until complete refunds have been applied, w hich would be more than a year after the original waiver was applied.
As written, LB 417 does not provide for reimbursement to the University system, though it has created an unfunded mandate. The
CCPE may need to also develop a process fo r certifying that the waivers claimed by the Community Colleges are “last d ollar”, meaning
that the student did not already receive state aid through existing Community College Programs 151 and 152.
Finally, LB 417 also proposes changes relating to the Quality Education Accountability Act , with potential impacts to K-12 education. As
written, LB 417 requires that the State Board of Education recommend a career-readiness assessment leading to a National Career
Readiness Certificate. Such instrument shall be made available to all students, in addition to a retake of the standard college admission
test (e.g. the ACT). The Nebraska Department of Education (NDE) explains that a retake of the ACT is already made available for
students who are eligible for free and reduced -price lunch. NDE notes that there are around 25,000 students in ea ch graduating class
across the state, and of those, about half, or 1 2,500 are eligible to retake the ACT. In contrast, all 25,000 would potentially be eligible
for the C areer Readiness Examinatio n. NDE further comments that the potential fiscal impact could be between $337,500 and
$687,500, depending on the number of students who retake the test at a n assumed cost of $13.50 per test. The Fiscal Office has no
basis to disagree with this analysis, but believes that the actual impact would be on the lower end.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 417 AM: AGENCY/POLT. SUB: Department of Education
REVIEWED BY: Kimberly Burns DATE: 02/13/2025 PHONE: (402) 471-4171
COMMENTS: The Department of Education’s estimated range of fiscal impact resulting from LB 417 appears
reasonable based on the assumptions provided.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 417 AM: AGENCY/POLT. SUB: Nebraska State College System
REVIEWED BY: Kimberly Burns DATE: 02/12/2025 PHONE: (402) 471-4171
COMMENTS: The Nebraska State College System’s estimate of fiscal impact from LB 417 appears accurate based on
the assumptions provided.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 417 AM: AGENCY/POLT. SUB: Coordinating Commission for Postsecondary Education
REVIEWED BY: Kimberly Burns DATE: 02/12/2025 PHONE: (402) 471-4171
COMMENTS: Agree with the Coordinating Commission for Postsecondary Education’s assessment of fiscal impact
based on the assumptions provided.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT . SUB. RESPONSE
LB: 417 AM: AGENCY/POLT. SUB: University of Nebraska System
REVIEWED BY: Kimberly Burns DATE: 02/12/2025 PHONE: (402) 471-4171
COMMENTS: No basis to disagree with the University of Nebraska System’s assessment of fiscal impact resulting
from LB 417.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 417 AM: AGENCY/POLT. SUB: Metropolitan Community College
REVIEWED BY: Kimberly Burns DATE: 02/12/2025 PHONE: (402) 471-4171
COMMENTS: Metropolitan Community College’s estimate of fiscal impact to the state attributed by their institution
from LB 417 appears reasonable based on the assumptions provided.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 417 AM: AGENCY/POLT. SUB: Nebraska Community College Association
REVIEWED BY: Kimberly Burns DATE: 02/03/2025 PHONE: (402) 471-4171
COMMENTS: Agree with the Nebraska Community College Association’s general assumption of fiscal impact caused by
loss of revenue from LB 417, but not enough information provided to adequately substantiate the stated revenue loss
amounts.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 417 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Community College Association
Prepared by:
(3) Courtney Wittstruck Date Prepared:
(4)
Jan. 23, 2025 Phone:
(5)
402-381-2084
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
-$795,160 -$819,015
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
_____________________________________________________________________________________________________ _
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) 417 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Education
Prepared by:
(3) Lane Carr Date Prepared:
(4)
2.10.25 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
$687,500 $687,500
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
$687,500 $687,500
Explanation of Estimate:
As it pertains to K-12 education, LB417 requires the State Board of Education to recommend a career-
readiness assessment leading to a National Career Readiness Certificate. Such instrument shall be made
available to all students, in addition to a retake of the standard college admission test.
Currently, the State Board has recognized the ACT pursuant to 79-360.03, Section 9. The ACT costs $55 per
test under the current NDE contract, and the ACT WorkKeys (one such instrument for National Career
Readiness) costs around $13.50 per test. A retake is already made available by ACT for students who are
eligible for free and reduced- price lunch.
It is unlikely every high school senior would retake the ACT or take the newly identified career-readiness
assessment. However, to estimate fiscal impact, the NDE notes there are around 25,000 students in each
graduating class. With roughly half eligible for free and reduced- price lunch, 12,500 students qualify for the free
retake from ACT. These students aside, 12,500 could be eligible for a retake of the ACT, and potentially all
25,000 eligible for the Career Readiness Examination under this provision. The fiscal impact would be between
$337,500 to $687,500.
_____________________________________________________________________________________________________ _
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…………………………...………. $687,500 $687,500
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… ..... $687,500 $687,500
0417Provide for administration of the Nebraska Promise Program by the
Board of Regents of the University of Nebraska, adopt the College Promise
Act, and change provisions relating to the Quality Education
__________________________________
EXPENDITURESEXPENDITURES
NUMBER OF POSITIONS
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1)
FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
University of Nebraska System
Prepared by:
(3)
Anne Barnes Date Prepared:
(4)
02/03/2025 Phone:
(5)
(402) 559-6300
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025 - 26 FY 2026 - 27
EXPENDITURES REVENUE
GENERAL FUNDS
7,123,766.00 0.00
CASH FUNDS
0.00 0.00
FEDERAL FUNDS
0.00 0.00
OTHER FUNDS
0.00 0.00
TOTAL FUNDS
7,123,766.00 0.00
EXPENDITURES REVENUE
7,123,766.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
7,123,766.00 0.00
Explanation of Estimate:
LB 417, if passed, would codify the already existing Nebraska Promise Program, formerly Collegebound Nebraska, which provides tuition coverage
for eligible undergraduate students at the University of Nebraska and the Nebraska College of Technical Agriculture.
While the program is currently administered by the University based on available resources and institutional priorities, codifying it into statute would
remove University oversight and flexibility, transferring control to the legislature without a dedicated funding mechanism. This shift would limit the
University#s ability to adjust cost thresholds, eligibility criteria, or academic requirements in response to financial and enrollment changes. Instead,
any modifications would require legislative action, potentially delaying necessary adjustments and creating administrative inefficiencies. The fiscal
impact listed is the estimated cost to maintain Nebraska Promise over the biennium based on current program expenditures and after subtracting
any federal or state aid used to support the program.
Without guaranteed state support, LB407 would effectively convert Nebraska Promise into a mandated, unfunded tuition waiver, further limiting
financial flexibility at a time of broader budgetary constraints.
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
Benefits..............................................
Operating...........................................
Travel.................................................
Capital outlay....................................
Aid...................................................
Capital improvements........................
TOTAL......................................
25 - 26
0
0
26 - 27
0
0
2025 - 26
7,123,766.00
7,123,766.00
2026 - 27
7,123,766.00
7,123,766.00 Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 417 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Metropolitan Community College
Prepared by:
(3) Brenda Schumacher Date Prepared:
(4)
1/27/25 Phone:
(5)
(531)622-2406
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
315,000.00 330,000.00
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
315,000.00 330,000.00
Explanation of Estimate: It appears that funding for the Community College Promise
Scholarships will be allocated from the state to the colleges to cover
expenses. This scholarship is awarded after all other federal and state
scholarships are applied so that would limit the number of students and
amount that would be awarded. In reviewing the past year, there were
approximately one hundred students that made less than $65,000 and did not
receive federal or state grants that would cover the cost of their tuition.
In order to estimate the expense of the scholarships, I took the 100
students by 45 quarter credit hours for a year for a full -time student
which resulted in 4,500 credit hours. Those 4,500 hours were then
multiplied by a tuition rate fo r resident students of $70. This resulted in
a total projected expense of $315,000. A small increase was added for FY
2026-27 for projected enrollment increase .
_____________________________________________________________________________________________________ _
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) 417 (Revised) FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Coordinating Commission for Postsecondary Education
Prepared by:
(3) Gary Timm Date Prepared:
(4)
2/12/2025 Phone:
(5)
402.471.0020
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
1,781,977 1,815,965
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
1,781,977 1,815,965
Explanation of Estimate:
LB 417, Sec. 3 through 7 creates the College Promise Act and p rovides a last-dollar tuition waiver for state
college and community college students from Nebraska families earning less than $65,000. LB 417 r equires
the commission to certify tuition amounts waived by each community college and state college, and then
reimburse the colleges from a General fund appropriation equal to the certified amount. The bill also requires
the commission to develop an appeals process.
The commission estimates that a 0.1 FTE will be required to perform on -site reviews of the college’s waiver
amounts, develop and administer an appeals process, and allocate and disburse funds. Also included is an
estimated $1,500 in operating expenses for computer lease expenses from the OCIO.
The state colleges and community colleges have provided the commission with waiver estimates which are
included under the aid category below.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Program Associate 0.1 0.1 4,800 5,000
1,300 1,500
Benefits………………………………...……
Operating…………………………...………. 1,500 1,500
Travel…………………………………… ….. 2,000 2,000
Capital outlay…………………...…………..
Aid…………………………………………... 1,772,377 1,805,965
Capital improvements……………………...
TOTAL……………………………… ..... 1,781,977 1,815,965
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 417 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Coordinating Commission for Postsecondary Education
Prepared by:
(3) Gary Timm Date Prepared:
(4)
1/24/2025 Phone:
(5)
402.471.0020
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
1,759,600 1,760,000
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
1,809,600 1,810,000
Explanation of Estimate:
LB 417, Sec. 3 through 7 creates the College P romise Act and p rovides a last-dollar tuition waiver for state
college and community college students from Nebraska families earning less than $65,000. LB 417 r equires
the commission to certify tuition amounts waived by each community college and state college, and then
reimburse the colleges from a General fund appropriation equal to the certified amount . The bill also requires
the commission to develop an appeals process.
The commission estimates that a 0.1 FTE will be required to perform on -site reviews of the college’s waiver
amounts, develop and administer an appeals process, and allocate and disburse funds. Also included is an
estimated $1,500 in operating expenses for computer lease expenses from the OCIO.
The state colleges and community colleges have provided the commission with waiver estimates which are
included under the aid category below.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Program Associate 0.1 0.1 4,800 5,000
1,300 1,500
Benefits………………………………...……
Operating…………………………...………. 1,500 1,500
Travel……………………………………….. 2,000 2,000
Capital outlay…………………...…………..
Aid…………………………………………... 1,772,377 1,805,965
Capital improvements……………………...
TOTAL……………………………… ..... 1,809,600 1,810,000
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 417 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska State College System
Prepared by:
(3) Brenda Owen Date Prepared:
(4)
02/11/2025 Phone:
(5)
402-471-2505
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
$652,767 $652,767
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
$652,767 $652,767
Explanation of Estimate:
The creation of the College Promise Act as outlined in LB417 has a sizable fiscal impact projected for the
Nebraska State College System. Based on our calculations, the potential fiscal impact to the NSCS is
approximately $652,767 for both FY26 and FY27. The dollar amount for the College Promise wai ver is
calculated using the percentage of Pell eligible students and reducing the amount by individuals that already
receive full Pell or the State Career Scholarship. The total impact is estimated to be $2,559,146, reduced by
NOG funding awarded in FY 2024-2025. The estimates and assumptions are set forth in the table below.
Projections were based on no enrollment growth, a 5% tuition increase, and no increase/decrease in NOG
funding.
_____________________________________________________________________________________________________ _ BREAKDOWN BY MAJOR OBJECTS OF EXPENDITU RE
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……………………………… .....