PREPARED BY: Bill Biven, Jr.
LB 524 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 $301,000 $302,000
CASH FUNDS SEE BELOW SEE BELOW
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS SEE BELOW $301,000 SEE BELOW $302,000
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB524 amends several sections to change the provisions of & authorize paraeducator grants under the Nebraska Teacher Recruitment
& Retention Act & changes the provisions relating to eligible uses of the Education Future Fund.
Paraeducators would now be eligible to receive financial incentives through the Nebraska Teacher Recruitment & Retention Act.
A paraeducator is eligible for a retention grant:
• of $1,000 if they sign a contract to work as a paraeducator & works on average twenty-eight hours or more per week during
the school year in FY2025-26 or FY2026-27
• in an amount proportional to the $1,000 grant based on the actual number of hours worked if t hat paraeducator signs a
contract to work as a paraeducator & works on average less than twenty-eight hours per week during the school year in
FY2025- 26 or FY 2026-27
The provision that required teachers to apply for th e retention grant is removed.
Grants will now be distributed automatically to the
school district employing the eligible teachers or paraeducators.
The provisions of the Education Future Fund will be updated to include these grants as any allowable use of the fund.
Since an emergency exists, this bill takes effect when passed & approved according to law.
FISCAL IMPACT:
LB705 (2023) appropriates $5,000,000 annually from the Education Future Fund to the Nebraska Teacher Recruitment & Retention Act
& is set to sunset January 1, 202 8.
There is no clarification as to what happens when the $5,000,000 is reached each fiscal year or if teachers & paraeducators can
receive the non-high needs grants one time or annually.
The Nebraska Department of Revenue (DOR) estimates that grants will generate $301,000 for FY2025- 26 & $302,000 for FY2026-27
due to the increase of the paraeducator’s & teacher’s income.
The Nebraska Department of Education (NDE) estimates that there are 9,320 paraeducators creating an annual expense of
approximately $9,320,000.
NDE estimates that 4,344 teachers would qualify for one of the three tiers of $2,500 retention grants creating an annual expense of
approximately $10,860,000.
NDE estimates that 1,178 teachers would qualify for the $5,000 high needs retention grant creating an annual expense of
approximately $5,890,000; w hich a teacher is only eligible to receive once.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 524 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 estimate of fiscal impact from LB 524 appears reasonable, given the
assumptions applied.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 524 AM: AGENCY/POLT. SUB: Department of Revenue
REVIEWED BY: Kimberly Burns DATE: 03/07/2025 PHONE: (402) 471-4171
COMMENTS: No basis to disagree with the Department of Revenue’s estimate of fiscal impact resulting from LB 524.
ADMINISTRATIVE SERVICES STATE BU DGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 524 AM: AGENCY/POLT. SUB: Nebraska Public Employees Retirement Systems
REVIEWED BY: Kimberly Burns DATE: 02/03/2025 PHONE: (402) 471-4171
COMMENTS: Concur with Nebraska Public Employees Retirement Systems’ assessment of no fiscal impact to the
agency from LB 524.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 524 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
$26,070,000 $20,180,000
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
$26,070,000 $20,180,000
Explanation of Estimate:
LB524 provides $1,000 awards to paraeducators through an extension of the Teacher Recruitment and
Retention Act. There are an estimated 9,320 paraeducators in Nebraska’s schools. The NDE is interpreting
this provision that paraprofessionals could receive this funding more than once.
Paraeducators – $1,000 x 9,320 = $9, 320,000
Additionally, LB524 amends the Teacher Recruitment and Retention Act so payments for eligible educators are
made automatically to districts. With this automatic payment, the following teachers would receive $2,500
stipends as part of the existing law. In the 2024-25 school year, the following number of teachers were eligible.
We assume approximately the same number of teachers eligible each year:
• Teachers in their Second Year - $2,500 x 1644 = $4,110,000
• Teachers in their Fourth Year - $2,500 x 1383 = $3,457,500
• Teachers in their Sixth Year - $2,500 x 1317 = $3,292,500
Total for 2
nd
, 4
th
, and 6
th
Year Teachers - $10,860,000
High need retention grants would automatically be made to teachers who on or after June 2, 2023 obtain an
endorsement in designated areas. There are an estimated 1,178 teachers meeting this provision. It appears
eligible teachers could only receive this grant once.
High Need - $5,000 x 1,178 = $5,890,000
The total fiscal impact for LB524 is $26,070,000 for the 2025-26 fiscal year and estimated to be $20,180,000
million in the 2026-27 fiscal year.
_____________________________________________________________________________________________________ _
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…………………………………………... $26,070,000 $20,180,000
Capital improvements……………………...
TOTAL……………………………… ..... $26,070,000 $20,180,000
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 524 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 524 – Authorize paraeducator grant s under NTRRA.
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 0524 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 $301,000 $302,000
Cash Funds
Federal Funds
Other Funds
Total Funds $301,000 $302,000
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 524 amends the Nebraska Teacher Recruitment and Retention Act by adding a paraeducator as an individual
who is eligible to receive a grant through this act. A paraeducator is defined as an individual who is employed by
a school in Nebraska to provide instructional support and noninstructional services to students and teachers in
schools but who is not required to hold a certificate to teach. A paraeducator is eligible to receive one thousand
dollars if they sign a contract to work as a paraeducator and works twenty- eight hours or more per week. A
paraeducator is also eligible to receive a proportional amount of a $1,000 grant if they work on average less than
twenty-eights hours per week. These grants are valid for the 2025- 2026 or 2026- 2027 school year.
It is estimated that this bill will have the following impacts on General Fund revenues:
General Fund
revenues
FY 25-26 $301,000
FY 26-27 $302,000
It is estimated that there will be no cost to the Department of Revenue to implement this bill.
This bill contains an emergency clause and becomes law upon enactment.