PREPARED BY: Bill Biven, Jr.
LB 523 DATE PREPARED: March 07, 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 SEE BELOW SEE BELOW
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB523 creates the Student Teacher Compensation Act & becomes operative on July 1, 2025.
The Nebraska Department of Education (NDE) will develop a stipend program to provide financial compensation to student teachers.
NDE will provide a stipend of four thousand dollars per student -teaching semester to any student teacher that applies for the stipend.
NDE will electronically submit an annual report to the Clerk of the Legislature & the Governor detailing the implementation of the
Student Teacher Compensation Act. The report will be available to the public & posted on NDE 's website.
Since an emergency exists, this bill takes effect when passed & approved according to law.
FISCAL IMPACT:
There is intent to appropriate funds annually to NDE to provide stipends to student teachers pursuant to the Student Teacher
Compensation Act. NDE can also seek additional funding through grants, private d onations, or federal programs.
NDE estimates there are 1,300 student teachers annually but not all are facing financial hardship so not all of them will qualify for the
stipend. The maximum amount for the student teachers, if all qualified for the stipend, would be $5,200,000. NDE also estimates the
need for a n additional FTE to administer the program. For FY2025-26 , the FTE has salary/benefits expense s of $93,946; operating
expense of $21,567; & travel ex penses of $1,354. For FY2026 -27, the FTE has salary/benefits expense s of $96,733; operating
expense of $17,297; & travel ex penses of $1,385.
The Nebraska Department of Revenue (DOR) estimates that there will be a minimal increase to General Fund revenues due to the
increased income of the student teachers who received the stipend.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 523 AM: AGENCY/POLT. SUB: Department of Education
REVIEWED BY: Kimberly Burns DATE: 03/07/2025 PHONE: (402) 471-4171
COMMENTS: The Department of Education’s assessment of fiscal impact from LB 523 assumes the maximum impact
possible and is likely overstated.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 523 AM: AGENCY/POLT. SUB: Department of Revenue
REVIEWED BY: Kimberly Burns DATE: 03/07/2025 PHONE: (402) 471-4171
COMMENTS: The Department of Revenue’s assessment of fiscal impact to General Fund revenues
from LB 523 appears reasonable.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 523 AM: AGENCY/POLT. SUB: Nebraska Public Employees Retirement Systems
REVIEWED BY: Kimberly Burns DATE: 02/03/2025 PHONE: (402) 471-4171
COMMENTS: The Nebraska Public Employees Retirement Systems’ assessment of no fiscal impact to the agency
from LB 523 appears reasonable.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 523 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Education
Prepared by:
(3) Lane Carr Date Prepared:
(4)
3.4.25 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
$5,316,867 $5,315,425
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
$5,316,867 $5,315,415
Explanation of Estimate:
Creates the Student Teacher Compensation Act and provides $4000 to student teachers who apply. The NDE
estimates around 1,300 student complete programs in Nebraska educator preparation programs each year, not
all of whom would qualify for financial hardship as determined by the board. At a maximum, the total for all
student teachers would be $5,200,000.
Additionally, the NDE would need a staff member to administer the program.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Program Specialist I 1 1 52,584 54,293
Benefits………………………………...…… 41,362 42,440
Operating…………………………...………. 21,567 17,297
Travel……………………………………….. 1,354 1,385
Capital outlay…………………...…………..
Aid…………………………………………... 5,200,000 5,200,000
Capital improvements……………………...
TOTAL……………………………… ..... $5,316,867 $5,315,415
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 523 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Public Employees Retirement Systems (NPERS)-
085
Prepared by:
(3) Teresa Zulauf Date Prepared:
(4)
1/28/25 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 523 – Adopt Student Teacher Compensation 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……………………………… .....
LB 0523 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 03/06/2025 Phone: 471-5896
FY 2025-2026 FY 2026-2027 FY 2027-2028
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds Minimal Minimal Minimal
Cash Funds
Federal Funds
Other Funds
Total Funds Minimal Minimal Minimal
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 523 establishes the Student Teacher Compensation Act (Act). The Act authorizes the State Department of
Education (Education) to develop a stipend program to provide compensation to student teachers. The $4,000
stipend would be provided per student teaching semester to any student teacher. The student teacher would
complete an application for Education that includes their name, name of accredited teacher education program
enrolled, the participating school, a demonstration of financial hardship determined by Education.
Terms defined in the Act include accredited teacher education program, participating school, and student teacher.
Education must submit an annual report to the Clerk of Legislature and the Governor that includes number of
student teachers receiving stipend, distribution of geographic area and subject matter, feedback from participants
and schools regarding effectiveness of the Act, and report must not identify any individual person or school
providing feedback. Act gives authority to Education to adopt and promulgate rules and regulations to carry out
the Act.
It is estimated that this bill will have a positive, but minimal, increase to the general fund revenues.
It is estimated that this bill will have no cost to the Department of Revenue to implement this bill.
This bill contains an emergency clause and becomes law upon enactment.