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 significant as it alters the eligibility criteria for municipalities seeking financial support. 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 operational tax levies below the average, as well as guidelines for the allocation of funds in cases where the Municipal Equalization Fund's total amount is insufficient to meet the required aid. The original section 77-27,139.03 is set to be repealed, indicating a complete overhaul of the existing legal framework governing municipal aid distribution.