Bill
Bill > LB1038
summary
Introduced
01/14/2026
01/14/2026
In Committee
01/21/2026
01/21/2026
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
109th Legislature
Bill Summary
A BILL FOR AN ACT relating to education; to amend sections 9-1204, 77-4211, 79-1001, 79-1003, 79-1005, 79-1005.01, 79-1006, 79-1007.11, 79-1007.18, 79-1008.01, 79-1009, 79-1016, 79-1017.01, 79-1021, 79-1022, 79-1022.02, 79-1023, 79-1027, 79-1031.01, 79-10,120, 79-3402, 79-3403, and 79-3406, Reissue Revised Statutes of Nebraska, sections 77-3012 and 77-4212, Revised Statutes Cumulative Supplement, 2024, and sections 77-3442, 77-4602, 77-7304, and 77-7305, Revised Statutes Supplement, 2025; to change school district levy limitations and provide exceptions; to terminate funds; to eliminate certain property tax credits; to change provisions relating to the transfer of General Fund net receipts; to change the Tax Equity and Educational Opportunities Support Act as prescribed; to state intent regarding certain transfers; to provide levy authority to school districts as prescribed; to change provisions relating to special building fund levies and the School District Property Tax Limitation Act; to harmonize provisions; to repeal the original sections; and to declare an emergency.
AI Summary
This bill makes significant changes to school funding and property taxes in Nebraska, primarily by adjusting school district levy limitations and phasing out certain property tax credits. It establishes a new "Education Future Fund" and transfers money from existing funds, such as the Property Tax Credit Cash Fund and the School District Property Tax Relief Credit Fund, into this new fund. The bill also alters how school districts calculate their general fund operating expenditures and formula need, with these changes becoming more pronounced in the 2026-27 school fiscal year and beyond. Additionally, it modifies the Tax Equity and Educational Opportunities Support Act, which is the primary state aid formula for school districts, by adjusting how certain allowances are calculated and by changing the valuation percentages used for state aid calculations. The bill also introduces a new provision allowing school districts to levy additional taxes for equalization aid if the Education Future Fund is insufficient to cover the full amount, and it revises the maximum levy for special building funds. Finally, it repeals numerous existing sections of law related to these changes and declares an emergency, meaning the act takes effect immediately upon passage.
Committee Categories
Budget and Finance, Education
Sponsors (1)
Last Action
Hughes FA947 filed (on 02/02/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=62677 |
| Hughes FA947 | https://nebraskalegislature.gov/FloorDocs/109/PDF/AM/FA947.pdf |
| Fiscal Note for LB1038 | https://nebraskalegislature.gov/FloorDocs/109/PDF/FN/LB1038_20260130-125325.pdf |
| Analysis - Statement of Intent | https://nebraskalegislature.gov/FloorDocs/109/PDF/SI/LB1038.pdf |
| Kauth FA697 | https://nebraskalegislature.gov/FloorDocs/109/PDF/AM/FA697.pdf |
| BillText | https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB1038.pdf |
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