This bill amends section 77-27,139.03 of the Reissue Revised Statutes of Nebraska, specifically addressing the distribution of state aid from the Municipal Equalization Fund. The key change prohibits cities of the first class from receiving any state aid under this section, which is a significant alteration to the existing framework for municipal funding. The bill outlines the calculation of state aid based on property tax levies and mandates that municipalities will not receive aid if the calculation results in a negative number or if they are classified as a city of the first class.

Additionally, the bill includes provisions for reducing state aid for municipalities with tax levies below the average property tax levy from the previous fiscal year, with a maximum reduction cap of eighty percent. It also stipulates that if the Municipal Equalization Fund has insufficient funds to meet the total state aid requirements, the available funds will be allocated on a prorated basis among municipalities. The original section 77-27,139.03 is repealed as part of this legislative update.