This bill amends section 77-27,139.03 of the Reissue Revised Statutes of Nebraska, which pertains to the calculation of state aid for municipalities. The key change involves the method of calculating the average property tax levy for operational purposes. The bill specifies that the Department of Revenue will now utilize the prior year's Certificate of Taxes Levied, certified to the Property Tax Administrator, to determine this average, replacing the previous requirement for the Auditor of Public Accounts to provide a list of tax request amounts from municipal budgets.

Additionally, the bill outlines the formula for distributing state aid from the Municipal Equalization Fund, which is based on the average per capita property tax and the municipality's certified valuation. It also includes provisions for reducing state aid if a municipality's tax levy is below the average, with a maximum reduction cap. Finally, the bill states that if the Municipal Equalization Fund has insufficient funds to meet the total state aid required, the available funds will be allocated on a prorated basis among municipalities, while any excess funds will be credited to the General Fund. The original section of the statute is repealed as part of this amendment.