This bill amends sections 13-522 and 19-2907 of the Reissue Revised Statutes of Nebraska, focusing on the compliance of political subdivisions with budget limits and annual audit requirements. It establishes that the Auditor of Public Accounts will prepare budget documents for governmental units, which must include their calculated restricted funds authority. If a governmental unit is found to be noncompliant, the State Treasurer will suspend the distribution of state aid for six months. If compliance is not achieved within that timeframe, the funds will be forfeited and redistributed to other recipients in the county or returned to the Highway Allocation Fund if no eligible recipient exists. Additionally, the bill stipulates that a governmental unit that fails to comply within twelve months will be ineligible for future state aid distributions until compliance is reached.

The bill also addresses the requirements for municipalities regarding annual audits. If a municipality fails to conduct an audit within six months of the fiscal year-end, a resident taxpayer can demand the audit, and if ignored, can initiate a mandamus action against municipal authorities. The Auditor of Public Accounts will notify the State Treasurer of any failure to file the audit, leading to withheld distributions of funds until compliance is achieved. Similar to the provisions for governmental units, municipalities that do not comply within twelve months will lose their entitlement to state funds until they reach compliance. The original sections 13-522 and 19-2907 are repealed as part of this legislative update.

Statutes affected:
Introduced: 13-522, 19-2907