Budget & Taxes (Revenue)

LB 1038 changes how Nebraska school districts can raise funds through property taxes and modifies property tax credits. It eliminates certain property tax credits for homeowners and adjusts school district levy limits, allowing districts more flexibility in setting local tax rates. The bill redirects tax revenue streams, increasing funding for the Education Future Property Tax Credit Cash Fund (from 70% to 40% for cash device taxes) and modifying how General Fund transfers support schools. These changes directly affect school districts (by altering their tax-raising authority) and property taxpayers (through eliminated credits).

LB 354 prohibits cities of the first class (like Omaha) from receiving state aid from Nebraska's Municipal Equalization Fund. The bill amends the existing law to explicitly exclude these large cities from eligibility, removing them from the formula used to calculate state aid. Under the current system, aid is based on property tax levies and population, but this bill ensures first-class cities receive no aid under this program. The change directly affects the funding of Nebraska's largest municipalities, eliminating a specific source of state revenue for them.