Budget & Taxes

LB 662 requires Nebraska state agencies receiving federal funds to submit detailed annual reports to the Department of Administrative Services by September 15 each even-numbered year. The reports must include the total federal funding received, state match requirements, contingency plans for funding cuts, and specific details about each federal agreement. The bill also prohibits state agencies from agreeing to federal "maintenance-of-effort" requirements (like mandatory state spending matches) without prior legislative approval. This directly affects all state agencies that accept federal grants or contracts, aiming to increase transparency and prevent automatic state spending commitments.

This Nebraska bill restricts property tax increases for community colleges. It prevents community colleges from raising taxes above last year's level if rising property valuations would cause higher taxes. To exceed this limit, colleges must hold public hearings with detailed notices about tax impacts and submit formal resolutions showing how proposed increases affect budgets. These changes apply specifically to community colleges under the state's Property Tax Request Act.

Nebraska's LB 264 moves specific state funds into the General Fund to support broader state operations. The bill requires transferring $8.25 million from the State Insurance Fund, $25.5 million from the Military Installation Fund, and over $32 million from the Water Recreation Fund, among other specified amounts, by mid-2025 or 2026. These transfers affect state financial accounts, redirecting money from specialized funds like recreation, economic development, and medical spending programs. The bill also eliminates several programs and outdated provisions, but its primary action is reallocating existing state funds.