PREPARED BY: Bill Biven, Jr.
LB 653 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 SEE BELOW SEE BELOW
CASH FUNDS SEE BELOW SEE BELOW
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.
LB653 amends several sections to change the provisions relating to:
• applications, capacity, & reports
• provide for reimbursement for certain students under the enrollment option program
• change authorized uses of the Education Future Fund (EFF)
• change provisions relating to reimbursement for special education programs & support services
Regardless of capacity for special education services, the number of applications made by students with an individualized education
program (IEP) under the federal Individuals with Disabilities Education Act, 20 U.S.C. 1400 et seq., which are denied by that school
district cannot exceed sixteen percent of the total enrollment option applications denied by that school district during that school year.
For a school district that accepts enrol lment option applications on a school building by school building basis that receives an
application for a school building that is at capacity for purposes of their enrollment option program wi ll notify the parent or guardian that
submitted the application that there are other school buildings in that same district that are not at capacity & are available to the student
for purposes of the enrollment option program.
Any option school district that is not a member of a learning community wi ll automatically accept as an option student, the
siblings of the
option students that apply to that same school district. Any option school district that is in a learning community wi ll give first priority for
enrollment to, & automatically accept regardless of capacity, siblings of the option students enrolled in the option school district.
A district that receives an incomplete application wi ll notify the applicant within ten business days after receipt of the incomplete
application that the application is incomplete & will be automatically rejected if not corrected.
Beginning July 1, 2024, & on or before July 1 of each year thereafter, each district will provide to the Nebraska Department of
Education (NDE) information prescribed by the Commissioner of Education relating to
applications that are rejected by the option
school district & all applications related to students with an IEP.
On or before October 15 of each school year, a district that accepts an application for an option student with an IEP under the federal
Individuals with Disabilities Education Act, 20 U.S.C. 1400 et seq., with expected costs for education & support services of that student
that are at least five times greater than the adjusted aver age per pupil cost of the preceding year , may apply to NDE for a payment from
the Education Future Fund to cover those expenses. The application will include detailed expected costs for providing education &
support services to that student.
For each district that received a payment pursuant to § 79-246 in the school year for which the special education expenditures were
reimbursed, an amount equal to the payment made will be subtracted from the reimbursement calculated & that amount will be
transferred into the EFF.
CONTINUED ON PAGE 2 LB 653
PAGE 2
FISCAL IMPACT:
NDE estimates the need for $25,000 to develop a system to collect data related to the additional payment if students with IEP’s have
costs in excess of five times the per pupil cost for that district.
Enrollment option is a facto r in the calculation of the Tax Equity & Educational Opportunities Support Act (TEEOSA) & those changes
cannot be determined at this time .
The fiscal impact to the state for the eighty percent of allowable SPED expenditures cannot be determined at this time.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 653 AM: AGENCY/POLT. SUB: Nebraska Department of Education
REVIEWED BY: Kimberly Burns DATE: 02/07/2025 PHONE: (402) 471-4171
COMMENTS: No basis to disagree with the Nebraska Department of Education’s estimate of fiscal impact to the agency
resulting from LB 653.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 653 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Department of Education
Prepared by:
(3) Bryce Wilson Date Prepared:
(4)
2/6/25 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
$25.000
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
$25.000
Explanation of Estimate:
LB 653 changes the following requirements of the enrollment option program.
• Does not allow students with individual education programs (IEP’s) to make up more than 16% of the total
denied enrollment option applications.
• Requires parents to be notified if a school building requested is at capacity but another school building is
not at capacity and open to enrollment option students.
• Requires siblings of current enrollment option students in the district to be automatically accepted by the
enrollment option district.
• Requires a school district to notify applicants if application is incomplete within 10 days.
Additionally, this bill creates a funding option for school districts that have accepted enrollment option students
with IEP’s that are expected to cost the district five time the per pupil cost for the district. Funding can be applied
for in these situations and paid out by November 15
th
of the year the enrollment option student applied. Funding
received through this process will reduce the school districts special education reimbursement the following year.
There may be a fiscal cost the first year which will be offset in the second year, but amount cannot be determined at
this time. This increases the dollar amount necessary to comply with IDEA Maintenance of State Financial Support
(MFS). 34 CFR 300.163(a) “A State must not reduce the total amount of State financial support for special
education and related services for children with disabilities, or otherwise made available because of the excess costs
of educating those children, below the amount of that support for the preceding fiscal year.” States that fail to
maintain support will have their Federal IDEA Part B Section 611 grant reduced by the same amount by which the
state failed to meet the requirement.
Last, this bill changes the NDE reporting requirement to Legislature to include the number of applications accepted
for students with IEP’s and excludes incomplete applications in the data submitted.
NDE would need to develop a system to collect data related to the additional payment if students with IEP ’s have
costs in excess of five times the per pupil cost for the district which is estimated to be $25,000.
_____________________________________________________________________________________________________ _
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…………………………...………. $25.000
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… ..... $25.000