This bill amends several sections of Nebraska's Revised Statutes to enhance compliance measures for political subdivisions regarding budget limits, property tax request authority, and annual audits. Key provisions include the requirement for the Auditor of Public Accounts to prepare budget documents that calculate restricted funds authority for governmental units, which must be submitted alongside their budgets. If a governmental unit is found noncompliant, the State Treasurer will suspend state aid distribution for six months, with forfeited funds being redistributed to other recipients in the county or returned to the Highway Allocation Fund if no eligible recipient exists. Additionally, if compliance is not achieved within twelve months, the governmental unit will be ineligible for future state aid distributions.

The bill also establishes similar compliance requirements for political subdivisions regarding property tax request authority, mandating the submission of forms to the auditor by September 30 each year. Noncompliance will result in the suspension of state aid, with the same forfeiture and redistribution rules applying. Furthermore, municipalities are required to conduct annual audits, and failure to do so will lead to withholding of funds by the State Treasurer until compliance is achieved. If a municipality does not comply within twelve months of a delinquency notice, it will lose eligibility for future state aid distributions. The original sections of the statutes being amended are repealed as part of this legislative update.

Statutes affected:
Introduced: 13-522, 19-2907
Final Reading: 13-522, 13-3407, 19-2907
Slip Law: 13-522, 13-3407, 19-2907