PREPARED BY: Bill Biven, Jr.
LB 500 DATE PREPARED: February 04, 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 SEE BELOW SEE BELOW
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.
LB500 creates the School Financing Review Commission & provides powers & duties.
The commission consists of twenty-one members, including:
• the Commissioner of Education or a designee of the Commissioner
• one representative of the Governor, appointed by the Governor
• three members of the Legislature, who will be nonvoting members of the commission, one from each congressional district
with no more than two from the same political party & with one being a member of the Education Committee of the Legislature
& one being a member of the Revenue Committee of the Legislature
• the Property Tax Administrator or a designee of the Property Tax Administrat or
• one representative of postsecondary education with expertise in school finance
• one member of the Educational Service Unit Coordinating Council (ESUCC)
• one school board member & one school administrator each representing a Class III school district with not more than one
thousand two hundred students
• one school board member & one school administrator each representing a Class III school district with more than one
thousand two hundred students but not more than ten thousand students
• one representative of a Class IV s chool district (Lincoln) & one representative of a Class V school district (Omaha). One
member appointed wi ll be a school board member of the school district being represented, & the other member appointed will
be a school administrator in the other school district being represented
• one member who is teaching as a certificated teacher in a public school
• six members from the state at large:
o two from each congressional district, who reside in school districts of varied sizes & with varying percentages of
limited English proficiency students & poverty students
o at least one of the members appointed will have experience in business
o at least one will have experience in farming
Commission members will be appointed by the Executive Board of the Legislative Council in January of each odd-numbered year for
two-year terms, except the initial members wi ll be appointed within thirty days after the effective date of this act & wil l serve until their
successors are appointed in January of 2027.
Commission members will be appointed by the Governor within thirty days after the effective date of this act to serve through December
31, 2034, & any vacancy will be filled by the Governor for the remainder of the vacated term. Of the four members, at least one will be
from each congressional district. To the extent possible, the membership of the commission will be diverse in terms of race , gender, &
other demographic factors.
Members of the commission wil l not receive any compensation for their services but w ill be reimbursed for expenses incurred as a
member of the commission.
The commission wi ll be housed within NDE.
CONTINUED ON PAGE 2
LB 500
PAGE 2
The Commission will conduct an in-depth review of the financing of the public elementary & secondary schools. As a part of the review,
the commission will:
• examine methods of financing public elementary & secondary schools, including methods used in other states, which would
provide equitable educational opportunities across the state & offer alternatives to a heavy reliance on property tax
• examine the option of using a measure of income as a component in the financing of public elementary & secondary schools
• examine the option of using sales tax as a component in the financing of public elementary & secondary schools, including,
but not limited to, an examinati on of the experience of any other states with that option
• examine financing issues as they relate to the quality & performance of public elementary & secondary schools
• examine options for funding public prekindergarten services
• examine options for fund ing college-readiness & career-readiness programs, including, but not limited to, programs of
excellence, dual-enrollment courses, & career academies
• examine the costs & resources necessary to meet the diverse & growing needs of students across the state, including, but not
limited to, the needs of poverty students & limited English proficiency students
• examine methods used by other states to fund public elementary & secondary school infrastructure needs
• examine other issues related to public elementary & secondary school finance as necessary & as determined by the
chairperson
• prepare a preliminary report & present it to the Legislative Council in November 2025. A final report with recommendations on
maintaining adequate & equitable funding for public schools in light of information gathered through the review wi ll be
presented to the Governor, to the State Board of Education, & electronically to the Legislature by December 1, 2025
After submission of its final report , to assure that every Nebraskan is educated for success, the School Financing Review Commission
will:
• review the mission of providing Nebraskans the opportunity to acquire the necessary skills & knowledge to be productive
individuals
• review, make recommendations on, & report on progress toward achieving any goals established by the Legislature & the
Nebraska Department of Education (NDE) related to that mission. The commission can solicit comments, concerns, & case
studies from schools of all sizes in Nebraska & develop best practices for implementing & achieving those goals
• review the implementation of the Tax Equity & Educational Opportunities Support Act (TEEOSA) & the implementation of any
recommendations contained in the reports
On or before July 1 of each even-numbered year beginning in 2028 & ending in 2034, the Commission will report to the Governor, to
the State Board of Education, & electronically to the Legislature on the adequacy of school funding sources.
Since an emergency exists, this bill will take effect when passed & approved according to law.
FISCAL IMPACT:
There will be some fiscal impact as the commission members will be reimbursed for expenses incurred but that amount cannot be
determined at this time.
ANALYST NOTE:
School district classifications were updated with LB1329 (2024) so there is no t a Class III school district with less than five thousand
students which would leave the commission without at least two members .
§79-102 classifies school distri cts as follows:
• Class I – a territory having a population of fewer than one thousand five hundred inhabitants that maintains both elementary &
high school grades under the direction of a single school board
• Class II – a territory having a population of one thousand five hundred or more but fewer than five thousand inhabitants that
maintains both elementary & high school grades under the direction of a single school board
• Class III – a territory having a population of five thousand or more but fewer than two hundred thousand inhabitants that
maintains both elementary & high school grades under the direction of a single school board
• Class IV – a territory having a population of two hundred thousand or more inhabitants with a city of the primary class within
the territory of the district that maintains both elementary & high school grades under the direction of a single school board
• Class V – a territory having a city of the metropolitan class within the territory of the district that maintains both elementary
grades & high school grades under the direction of a single s chool board
CONTINUED ON PAGE 3 LB 500
PAGE 3
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 500 AM: AGENCY/POLT. SUB: Nebraska Department of Education
REVIEWED BY: Kimberly Burns DATE: 02/02/2025 PHONE: (402) 471-4171
COMMENTS: Concur with the Nebraska Department of Education’s assessment of negligible fiscal impact to the agency
from LB 500.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 500 AM: AGENCY/POLT. SUB: Department of Revenue
REVIEWED BY: Kimberly Burns DATE: 02/06/2025 PHONE: (402) 471-4171
COMMENTS: Concur with the Department of Revenue’s assessment of no fiscal impact from LB 500.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 500 AM: AGENCY/POLT. SUB: University of Nebraska System
REVIEWED BY: Kimberly Burns DATE: 02/02/2025 PHONE: (402) 471-4171
COMMENTS: Concur with the University of Nebraska System’s assessment of no fiscal impact resulting from LB 500.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 500 AM: AGENCY/POLT. SUB: Coordinating Commission for Postsecondary Education
REVIEWED BY: Kimberly Burns DATE: 02/02/2025 PHONE: (402) 471-4171
COMMENTS: Concur with the Coordinating Commission for Postsecondary Education’s assessment of no fiscal impact
resulting from LB 500.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 500 AM: AGENCY/POLT. SUB: Nebraska State College System
REVIEWED BY: Kimberly Burns DATE: 02/03/2025 PHONE: (402) 471-4171
COMMENTS: Concur with the Nebraska State College System’s assessment of no fiscal impact from LB 500.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 500 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Department of Education
Prepared by:
(3) Bryce Wilson Date Prepared:
(4)
1/31/25 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
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
LB 132 creates the School Financing Review Commission. The commission shall consist of twenty -one members,
including:
(a) The Commissioner of Education or his or her designee (Chairperson);
(b) One representative of the Governor appointed by the Governor;
(c) Three non- voting members of Legislature;
(d) The Property tax Administrator or designee;
(e) One representative of postsecondary education with expertise in school finance;
(f) One member of the Educational Service Unit Coordinating Council;
(g) One school board member and one school administrator each representing a class III school district
with not more than one thousand two hundred students;
(h) One school board member and one school administrator each representing a class III school district
with more than one thousand two hundred students but not more than ten thousand students;
(i) One representative of a Class IV school district and one representative of a Class V school district.
(j) One member whis is teaching as a certificated teacher in a public school;
(k) Six members from the state at large:
- Two from each congressional district, who reside in school districts of varied sizes and with varying
percentages of limited English proficiency students and poverty students.
- At least one shall have experience in business,
- At least one shall have experience in an agriculture-related business.
• The School Financing Review Commission shall conduct an in- depth review of the financing of the public
elementary and secondary schools. As a part of such in- depth review, the commission shall: including:
o A final report with recommendations on maintaining adequate and
equitable funding for public schools in light of information gathered through the review shall be
presented to the Governor, the State Board of Education, and electronically to the Legislature by
December 1, 2025.
o On or before July 1 of each even-numbered year beginning in 2028 and
ending in 2034, the School Financing Review Commission shall report to the Governor, to the State
Board of Education, and electronically to the Legislature on the adequacy of school funding sources.
The fiscal impact to the State and NDE for Committee expenses would be minimal.
_____________________________________________________________________________________________________ _
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……………………………… .....
LB 0500 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 02/05/2025 Phone: 471-5896
FY 2025-2026 FY 2026-2027 FY 2027-2028
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $ 0 $ 0 $ 0
Cash Funds
Federal Funds
Other Funds
Total Funds $ 0 $ 0 $ 0
Major Objects of Expenditure
25-26 26-27 27-28 25-26 26-27 27-28
Class Code Classification Title FTE FTE FTE Expenditures Expenditures Expenditures
Benefits………………………………………………………………………………………………………….
Operating Costs………………………………………………………………………………………………….
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………...
Capital Improvements…………………………………………………………………………………………...
Total…………………………………………………………………………………………………………….
LB 500 creates the School Financing Review Commission. This Commission is made up of 21 members. This
includes:
a) The commissioner of Education or designee.
b) One Representative appointed by the Governor.
c) Three members of the Legislature, who are no voting members, from each Congressional District, no more
than two from the same party, and one from the Education Committee, and one from the Revenue
Committee.
d) Property Tax Administrator or designee.
e) One Representative of postsecondary education with expertise in school finance.
f) One member of the Educational Service Unit Coordinating Council.
g) One school board member from a Class III school district with not more than 1,200 students.
h) One administrator from a Class III school district with not more than 1,200 students.
i) One school board member from a Class III school district with more than 1,200 students.
j) One administrator from a Class III school district with more than 1,200 students.
k) One Representative of a Class IV School District.
l) One Representative of a Class V School District.
m) One member who is teaching as a Certified Teacher in public schools.
n) Six members from the state at large, with two from each Congressional district. At least one of who must
have experience in business and at least one must have experience in farming.
Members from (c) must be appointed by the Executive Board of the Legislative council.
Members from (e) must be appointed by the Governor within 30 days of the effective date of this act and serve
through December 31, 2034.
Members of the Commission must not receive compensation but must be reimbursed.
The Commissioner of Education or designee must be the chairperson of the Commission.
LB 0500 page 2 Fiscal Note 2025
The Commissioner must do an in- depth review of the financing of the public elementary and secondary schools.
They must examine:
• Financing of public elementary and secondary schools;
• The option of using a measure of income as a component in financing these schools;
• The option of using sales tax;
• Financing issues as they relate to the quality and performance of these schools;
• Options of funding public pre-kindergarten services;
• Options for funding college-readiness and career-readiness programs;
• Methods used by other states to fund these schools’ infrastructure needs;
• Other public elementary and secondary school finance issues as necessary.
A preliminary report must be prepared and presented to the Legislative Council in November 2025.
After submission of the final report the Commission must
• review the mission of providing Nebraskans the opportunity to acquire necessary skills and knowledge to
be productive individuals;
• review and make recommendations on progress toward achieving any goals established by the Legislature
and the State Department of Education related to such mission;
• review the implementation of the Tax Equity and Educational Opportunities Support Act;
• report to the Governor, the State Board of Education, and the Legislature on or before July 1 of each even
numbered year from 2028 to 2034.
This bill contains an emergency clause and becomes law upon enactment.
It is estimated that LB 500 will have no impact on General Fund revenues.
It is estimated that there will be minimal cost to the Department of Revenue to implement this bill.
0500Create the School Financing Review Commission
__________________________________
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)
01/27/2025 Phone:
(5)
(402) 559-6300
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025 - 26 FY 2026 - 27
EXPENDITURES REVENUE
GENERAL FUNDS
0.00 0.00
CASH FUNDS
0.00 0.00
FEDERAL FUNDS
0.00 0.00
OTHER FUNDS
0.00 0.00
TOTAL FUNDS
0.00 0.00
EXPENDITURES REVENUE
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
Explanation of Estimate:
By Erin Cooper - Erin K Cooper
______________________________________________________________________
No Fiscal Impact
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 2026 - 27 Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 500 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Coordinating Commission for Postsecondary Education
Prepared by:
(3) Gary Timm Date Prepared:
(4)
1/23/2025 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
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
No fiscal impact.
_____________________________________________________________________________________________________ _
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) 500 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska State College System
Prepared by:
(3) Brenda Owen Date Prepared:
(4)
1-27-2025 Phone:
(5)
471-2507
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
No fiscal impact
_____________________________________________________________________________________________________ _
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……………………………… .....