PREPARED BY: Bill Biven, Jr.
LB 652 DATE PREPARED: March 05, 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 SEE BELOW SEE BELOW
FEDERAL FUNDS
OTHER FUNDS SEE BELOW SEE BELOW
TOTAL FUNDS SEE BELOW SEE BELOW
Any Fiscal Notes received from state agencies and political subdivisions are attached f ollowing the Legislative Fiscal Analyst Estimate.
LB652 amends §72- 201 to terminate the Board of Educational Lands & Funds (BELF) & to provide for the sale of school lands.
BELF will terminate as a state agency on July 1, 2027. On that date, the Department of Administrative Services (DAS) wi ll assume
control of all of the school lands that had been under the general management & control of BELF immediately prior to their termination.
DAS will sell the lands as the leases for the lands expire. The person who was leasing the land most recently wi ll have the right of first
refusal to purchase the land. If that person does not purchase the land, DAS wi ll sell the land at public auction. The proceeds of the
sales will be remitted to the State Treasurer for credit to the permanent school fund. In addition, any funds placed into the temporary
school fund by BELF that are still in the fund on July 1, 2027, wi ll be distributed to the school districts.
Each year, school districts will receive their share of the Temporary School Fund (Apportion ment) based on the census of children ages
five to eighteen who live in their district.
TECHNICAL NOTE S:
LB 652 doesn’t clarify how or when the transfer of BELF ’s current appropriations, staff (FTE’s & PSL ), furniture, building, pickups,
UTV’s, trailers, etc. will occur.
Multiple statutes within the Revised Statutes Chapter 72 – Public Land, Buildings, & Funds will need to be updated to ref lect DAS
instead of BELF being the agency overseeing all aspects of the school lands & Permanent /Temporary School Funds.
The Nebraska State Surveyor is appointed by BELF & resides in the same building as BELF. LB652 does not clarify the status of the
Nebraska State Surveyor, Deputy State Surveyors or its ’ office staff, nor does it provide any guidance for the future of the Nebraska
State Surveyor’s office, the Nebraska Survey Record Repository, or the impact to the Nebraska Board of Examiners for Land
Surveyors.
Article VII, section 6 of the Nebraska Constitution states the management of the education lands is vested, under direction of the
Legislature, with the Board of Educational Lands and Funds.
FISCAL IMPACT:
BELF estimates the need for $65,000 for public relations & communication to inform the public of the agency’s termination.
If their employees aren’ t transitioned into different roles within the state, BELF would be required to pay for all of their accumulated
vacation leave, percentage of sick leave, & associated payroll benefit expenses which is estimated at $709,380. BELF also estimates
legal expenses of $110,000 related to the fiduciary duties & responsibilities of Trust Funds.
The Nebraska Department of Education (NDE) estimates that there could be an impact to the annual State Apportionment pa yment that
is certified by the State Treasurer, that impact cannot be determined at this time.
Starting in FY2027-28, it is assumed that DAS will absorb thirteen of BELF’s current staff (no Director, administrative/financial staff or
per diem staff) & will also need one additional FTE (Procurement Contracts Officer - A04013) to handle & oversee the required
transactions from the sale of properties.
ADMINISTRATIVE SERVICES STATE BUDGET DI VISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 652 AM: AGENCY/POLT. SUB: Nebraska Department of Education
REVIEWED BY: Kimberly Burns DATE: 03/06/2025 PHONE: (402) 471-4171
COMMENTS: Concur with the Department of Education’s assessment of no fiscal impact for the agency and
indeterminate impact for the school districts resulting from LB 652.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 652 AM: AGENCY/POLT. SUB: Board of Educational Lands and Funds
REVIEWED BY: Kimberly Burns DATE: 02/18/2025 PHONE: (402) 471-4171
COMMENTS: No basis to disagree with the Board of Educational Lands and Funds’ estimate of fiscal impact resulting
from LB 652.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 652 AM: AGENCY/POLT. SUB: Nebraska State Surveyor
REVIEWED BY: Kimberly Burns DATE: 01/31/2025 PHONE: (402) 471-4171
COMMENTS: Concur with the Nebraska State Surveyor’s assessment of indeterminate fiscal impact from LB 652.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 652 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Department of Administrative Services (DAS) – State Building
Division (SBD)
Prepared by:
(3) Brent Flachsbart
Ann Martinez
Date Prepared:
(4)
02/24/2025 Phone:
(5)
531-207-9029
402-471-4135
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2027-28 FY 2028-29
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
$410,157
CASH FUNDS
$14,489,657
FEDERAL FUNDS
TRUST FUNDS
$1,144,170
TOTAL FUNDS
$16,043,984 See Below
Explanation of Estimate:
LB 652 proposes to terminate the Board of Educational Lands and Funds (the “Board”) on July 1, 2027, (the next
biennium) and have the Department of Administrative Services (DAS) assume control of all school lands under the
management and control of the board. DAS is then to sell the school lands as the leases expire, giving the lessee a
right of first refusal to purchase the property. If the lessee does not purchase the land, such land is to be sold at
public auction and the funds remitted to the permanent school fund of the state.
According to the Board’s website, the current holdings consist of 3,123 leases covering 1,259,290 acres of land
with varying expiration dates for those leases as follows:
Year of Expiring Lease No. of
Leases
2024 443
2025 423
2026 390
2027 408
2028 433
2029 334
2030 311
2031 246
2032 56
2033 62
2034 2
After 2023 12
TOTAL 3,123
It is assumed that the leases set to expire prior to July 1, 2027, will be renewed with new termination dates;
however, the year in which those leases will expire is unknown at this time.
At the time of each lease expiration an appraisal would be required to determine the market value of the land to be
sold. Each parcel would then be offered to the lessee for purchase and, if refused, would be required to be
advertised for public auction.
It is estimated to, based on the number of leases, require approximately 400 sales annually. It is possible as
leases come due there will be no interested buyers, and the lease will be renewed.
LB 652 as introduced doesn’t provide for a transfer of staff (FTE’s), furniture, building, pickups, UTV’s, trailers, etc.,
nor the source of funding to maintain the Board’s operations by the Department of Administrative Services (DAS) -
State Building Division (SBD) until all the properties have been sold. A future reduction in staff and operational
costs would be achieved as properties are sold.
DAS-SBD would be required to continue the current operational responsibilities of the Board and would require one
additional Procurement Contracts Officer (A04013) to handle and oversee such transactions required for the sale of
the property. DAS-SBD would also incur additional costs related to assessments for administration, financial and
HR/payroll costs related to this new DAS-SBD program and costs related for possible outside appraisals and the
costs of selling the properties – advertising, etc. In addition, DAS-SBD would require the transfer of most of the
current Board’s staff and assets to continue the Board’s responsibilities until such time as all the properties were
sold. This would include PSL, appropriation and access to the Board’s existing funds – General, Cash and Trust
Funds.
Using reduced staffing to 13 positions – no Director, administrative/financial staff or p er diem staff, or vacancies not
filled, plus the addition of one (1) new position (applying salary and health insurance expenses) and using actual
FY23-24 (the most recently completed fiscal year) operating and travel expenses, it is estimated below for FY27-28
PSL needs of $1,607,795 and appropriation (excluding any capital assets) needs of $16,043,984. The estimated
expenditures by fund type are above.
Additional analysis is needed prior to July 1, 2027, to determine the operations that DAS-SBD will need to continue
until all the properties are sold, updated salary and benefit amounts, operational costs and an understanding of the
various other operating expenditures that use Trust funds.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
27-28 28-29
2027-28
EXPENDITURES
2028-29
EXPENDITURES
Various 14 $1,607,795
Benefits………………………………...…… $641,083
Operating…………………………...………. $13,774,057
Travel……………………………………….. $21,049
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… ..... $16,043,984
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 652 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Department of Education
Prepared by:
(3) Bryce Wilson Date Prepared:
(4)
3/5/25 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 652 eliminates The Board of Educational Lands and Funds on July 1, 2027. This bill requires that all school
lands be sold with the proceeds deposited into the perman ent school fund and any remaining proceeds in the
temporary school fund be distributed to school districts.
There likely would be an impact on the Apportionment funding for schools but the actual impact can’t be
determined at this time. 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…………………………………………...
Capital improvements………………… …...
TOTAL……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 652 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska State Surveyor
Prepared by:
(3) Casey C. Sherlock Date Prepared:
(4)
January 30, 2025 Phone:
(5)
402-471-2566
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
0 0 0 0
CASH FUNDS
0 0 0 0
FEDERAL FUNDS
0 0 0 0
OTHER FUNDS
0 0 0 0
TOTAL FUNDS
0 0 0 0
Explanation of Estimate:
The Nebraska State Surveyor is appointed by the Board of Educational Lands & Funds. The bill makes no
determination as to the status of the Nebraska State Surveyor, Deputy State Surveyors or office staff. This
legislative bill provides no guidance for the future of the Nebraska State Surveyor’s office, the Nebraska
Survey Record Repository, or the impact to the Nebraska Board of Examiners for Land Surveyors. From the
language proposed I am unable to make any determinations of fact based upon the vagueness of this bill.
_____________________________________________________________________________________________________ _
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) 652 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Board of Educational Lands and Funds
Prepared by:
(3) Kelly L. Sudbeck Date Prepared:
(4)
01/30/25 Phone:
(5)
402-471-2014
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
$65,000.00 $819,380.00
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
The estimated expenses related to terminating the Board of Educational Lands and fund for FY25 /26 are
related to public relations and communication expense of $65,000.00 to inform the public of the Legislative
Action. If Legislative Bill 652 passes the Board of Educational Lands and Funds would be required to pay
employees for their accumulated vacation leave, percentage of sick leave, and associated payroll benefit
expenses estimated at $709,380.00. The Board also expects to accrue legal expenses of $110,000.00 related
to their fiduciary duties and responsibility of Trust Funds.
Depending upon how the lands are managed by the Depar tment of Administrative S ervices, the loss of
revenue to the Nebraska Public Schools, for the operative years of this bill, could be in the millions, to tens of
millions of dollars. The sale procedure set forth in this bill would, in this Board’s opinion, result in a “fire sale”
scenario, wherein the au ctions would fail to realize full market value for the properties, and the School Land
Trust, and the Public Schools, could potentially lose hundreds of m illions of dollars in lost proceeds , and
additional millions of dollars in corresponding lost revenue on the unrealized proceeds of the auctions.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXP ENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Benefits………………………………...……
Operating…………………………...………. $65,000.00 $819,380.00
Travel…………………………… …………..
Capital outlay…………………...…………..
Aid……………………………………… …...
Capital improvements……………………...
TOTAL……………………………… ..... $65,000.00 $819,380.00