Bill > LB130

This bill modifies the process for transferring excess General Fund net receipts to the Cash Reserve Fund, which is essentially the state's rainy day fund. Under the new provisions, the Tax Commissioner will now calculate not just the difference between actual and estimated General Fund net receipts, but also a more complex calculation involving the percentage increase in net receipts compared to the average increase over the previous twenty fiscal years. If the calculated amount is positive, the State Treasurer will transfer the funds to the Cash Reserve Fund, with one portion transferred immediately and any remainder transferred by the end of the subsequent fiscal year. The bill also introduces a cap on transfers that would prevent the Cash Reserve Fund from exceeding 16% of total budgeted General Fund expenditures, though the Legislature can exceed this limit if necessary for critical needs like capital construction or emergency responses. Importantly, the bill eliminates the previous provision that would have transferred excess funds to the School District Property Tax Relief Credit Fund if net receipts exceeded 103% of the previous year's receipts, effectively streamlining and simplifying the transfer process.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59489