PREPARED BY: Bill Biven, Jr.
LB 498 DATE PREPARED: February 06, 2025
PHONE: 402-471-0054
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 $5,431,267 $6,588,739
CASH FUNDS $3,276,563 $3,293,563
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $8,707,830 $9,882,302
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB498 amends several sections relating to the Tax Equity & Educational Opportunities Support Act (TEEOSA) to change the provisions
relating to foundation aid & certain certification dates.
Starting with the 2025-26 school year & each school year thereafter, the foundation aid to be paid to each district each year will equal
the amount of foundation aid paid per formula student in the immediately preceding school year that is then increased by the
percentage increase in the Consumer Price Index for All Urban Consumers published by the Federal Bureau of Labor Statistics for the
previous calendar year, multiplied by the n umber of formula students for that district.
Since an emergency exists, this bill will take effect when passed & approved according to law.
FISCAL IMPACT:
The Consumer Prices Index (CPI) for all items rose 2.9 percent from December 2023 to December 2024.
Using a 2.9% increase from the CPI for both FY2025-26 & FY 2026-27, the TEEOSA calculation is increased by $5,431,267 from the
General Fund & $3,276,563 from the Education Future Fund for FY2025-26 ; & $6,588,739 from the General Fund & $3,293,563 from
the Education Future Fund for FY2026- 27.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 498 AM: AGENCY/POLT. SUB: Nebraska Department of Education
REVIEWED BY: Kimberly Burns DATE: 02/06/2025 PHONE: (402) 471-4171
COMMENTS: The Nebraska Department of Education’s estimate of fiscal impact in FY 2025-26 from LB 498 appears
reasonable based on the assumptions. No basis to disagree with the estimated fiscal impact provided for FY 2026-07.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 498 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Department of Education
Prepared by:
(3) Bryce Wilson Date Prepared:
(4)
1/29/25 Phone:
(5)
402-471-4320
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
$6,804,913 $6,840,000
CASH FUNDS
$2,148,920 $2,160,000
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
$8,953,833 $9,000,000
Explanation of Estimate:
LB 498 changes the amount of foundation aid paid out per student to the amount paid the prior year plus the
Consumer Price Index amount from the prior year. Additionally, this bill would change the certification date to
June 15th and void any previous certification for 2025/26 TEEOSA aid.
For the fiscal note NDE used a CPI of 2.9% for 2024 which increased the foundation aid from $1,500 to
$1,543. The cost of the changes for FY 2025/26 is $8,953,833. Since the CPI is not known yet for FY 2025
NDE estimated a similar amount for 2026/27.
No fiscal impact to NDE.
_____________________________________________________________________________________________________ _
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…………………………………………... $8,953,833 $9,000,000
Capital improvements……………………...
TOTAL……………………………… ..... $8,953,833 $9,000,000