Nebraska 2025 2025-2026 Regular Session

Nebraska Legislature Bill LB678 Introduced / Fiscal Note

Filed 02/24/2025

PREPARED BY: Suzanne Houlden
LB 678 DATE PREPARED: February 20, 2025
PHONE: 402-471-0057

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 $2,910,962 $5,810,161
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $2,910,962 $5,810,161

Any Fiscal Notes received from state agencies and political subdivisions are attached f ollowing the Legislative Fiscal Analyst Estimate.

LB 678 states intent to appropriate General Fund dollars to the Board of Trustees of the Nebraska State Colleges (NSCS) for salary
increases, minimum wage increases, and for increases in health insurance premiums for the FY26-FY27 biennium . These dollar
amounts, as broken out in the table below, were included in the NSCS FY26-27 operating budget request.

As stated in the bill, the funding for salary increases is based on negotiated agreements with the Nebraska Association of P ublic
Employees (NAPE), the State College Education Association, and the Nebraska State College System Pr ofessional Association. The
negotiation process with bargai ning units is completed before the state appropriation cycle begins. The amounts for minimum wage
increases are based on the Wage and Hour Act changes that took place on January 1, 2025, and on change s that will take effect
January 1, 2026. The amounts for health insurance premiums were based on the budget instructions issued by the Department of
Administrative Services (DAS) to assume a 5% increase each year of the upcoming biennium. The actual rate increase for NSC S, who
uses a different provider than the State of Nebraska, will be 5.4% for FY6. The increase for health insurance that will be appropriated
for some agencies will be 11% year over year.

Biennium Request
FY26 FY27
Employee Salary Increase 3.0% $2,199,416 $4,464,828
Health Insurance 5.0% $488,790 $1,002,019
Minimum Wage $222,756 $343,314
Total $2,910,962 $5,810,161

ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 678 AM: GENCY/POLT. SUB: Coordinating Commission for Postsecondary Education

REVIEWED BY: Kimberly Burns DATE: 02/07/2025 PHONE: (402) 471-4171

COMMENTS: Concur with the Coordinating Commission for Postsecondary Education’s assessment of no fiscal impact
to the agency from LB 678.

ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 678 AM: AGENCY/POLT. SUB: Nebraska State College System

REVIEWED BY: Kimberl y Burns DATE: 02/19/2025 PHONE: (402) 471-4171

COMMENTS: The Nebraska State College System’s FY 2025-26 estimate of fiscal impact from LB 678 appears
reasonable. Disagree with the FY 2026- 27 fiscal impact estimate, which does not appear to compound the FY 2025-26
increases into the impact shown for FY 2026-27.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 678 FISCAL NOTE

State Agency OR Political Subdivision Name:
(2)
Nebraska State College System

Prepared by:
(3) Brenda Owen Date Prepared:
(4)
2/14/2025 Phone:
(5)
402-471-2505

ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION

FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS

$2,910,962 $2,899,199

CASH FUNDS

FEDERAL FUNDS

OTHER FUNDS

TOTAL FUNDS

$2,910,962 $2,899,199

Explanation of Estimate:

Employee Salary Increase:
The salary increases in line with biennium budget instructions as requested by the Department of Administrative
Services State Budget Division. It includes the cost impact of a 3% salary increase on base salaries for the NSCS
that was recommended by the Department of Administrative Services (DAS) which was the basis for the labor
negotiations with the three unions across the State Colleges (NAPE /AFSCME, NSCPA, and SCEA) .

Health Insurance:
This request supports the health, dental and vision benefits programs for all benefit eligible employees. The DAS
budget instructions ask that a 5% increase be used for each year of the biennium. While the NSCS uses a
different provider than the State of Nebraska, the average increase for the last five years is 5% and the basis of the
request. The rate increase for FY26 has been set at 5.4%, and FY27 rates will not be available until October 2025
but are expected to align with the 5% average from the past five years.

Minimum Wage:
To address the minimum wage increase that occurred on January 1, 2025, with one- half of the budget impact
felt in FY25, and the full impact felt in FY26. The FY25 impact was addressed with the recent tuition increase.
The second half of the impact is included in the minimum wage request. The minimum wage will increase
again on January 1, 2026 ($13.50 to $15.00), with one- half of the impact included in the FY26 request and the
second half in the FY27 request.

_____________________________________________________________________________________________________ _ BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Various $2,422,172 $2,385,970

Benefits………………………………...…… $488,790 $513,229
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… ..... $2,910,962 $2,899,199
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 678 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