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LEGISLATURE OF NEBRASKA
ONE HUNDRED SIXTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 695
Introduced by Groene, 42; Albrecht, 17; Brewer, 43; Briese, 41; Clements,
2; Geist, 25; Linehan, 39.
Read first time January 23, 2019
Committee: Education
1 A BILL FOR AN ACT relating to school finance; to amend sections 77-3442,
2 77-3446, 77-4209, 77-4212, and 79-1025, Reissue Revised Statutes of
3 Nebraska, and sections 79-1001, 79-1003, 79-1005.01, 79-1007.11,
4 79-1007.18, 79-1008.01, 79-1009, 79-1015.01, 79-1016, 79-1017.01,
5 79-1022, 79-1022.02, 79-1023, 79-1027, and 79-1031.01, Revised
6 Statutes Cumulative Supplement, 2018; to change levy limits as
7 prescribed; to change the base limitation rate as prescribed; to
8 change the use of funds under the Property Tax Credit Act as
9 prescribed; to change provisions relating to the Tax Equity and
10 Educational Opportunities Support Act; to define and redefine terms;
11 to provide for the calculation of an inflation rate; to terminate
12 allocated income tax funds as prescribed; to provide for foundation
13 aid; to terminate the averaging adjustment as prescribed; to change
14 net option funding as prescribed; to change provisions relating to
15 the local effort rate and local effort rate yield as prescribed; to
16 change the determination and certification dates relating to
17 distribution of aid, certification of certain budget limitations,
18 and duties of the Appropriations Committee of the Legislature as
19 prescribed; to harmonize provisions; to eliminate obsolete
20 provisions relating to the minimum levy adjustment; to repeal the
21 original sections; to outright repeal section 79-1008.02, Revised
22 Statutes Cumulative Supplement, 2018; and to declare an emergency.
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1 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 77-3442, Reissue Revised Statutes of Nebraska, is
2 amended to read:
3 77-3442 (1) Property tax levies for the support of local governments
4 for fiscal years beginning on or after July 1, 1998, shall be limited to
5 the amounts set forth in this section except as provided in section
6 77-3444.
7 (2)(a) Except as provided in subdivisions (2)(b) and (2)(e) of this
8 section:
9 (i) For fiscal years prior to fiscal year 2020-21, school districts
10 and multiple-district school systems may levy a maximum levy of one
11 dollar and five cents per one hundred dollars of taxable valuation of
12 property subject to the levy; and .
13 (ii) For school fiscal year 2020-21 and each school fiscal year
14 thereafter, school districts and multiple-district school systems may
15 levy a maximum levy equal to five cents per one hundred dollars of
16 taxable valuation of property subject to the levy plus a levy rate which
17 when applied to taxable valuation of property subject to the levy
18 generates an amount equal to the local formula contribution for such
19 fiscal year calculated pursuant to section 79-1015.01.
20 (b) For each fiscal year prior to fiscal year 2017-18, learning
21 communities may levy a maximum levy for the general fund budgets of
22 member school districts of ninety-five cents per one hundred dollars of
23 taxable valuation of property subject to the levy. The proceeds from the
24 levy pursuant to this subdivision shall be distributed pursuant to
25 section 79-1073.
26 (c) Except as provided in subdivision (2)(e) of this section, for
27 each fiscal year prior to fiscal year 2017-18, school districts that are
28 members of learning communities may levy for purposes of such districts'
29 general fund budget and special building funds a maximum combined levy of
30 the difference of one dollar and five cents on each one hundred dollars
31 of taxable property subject to the levy minus the learning community levy
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1 pursuant to subdivision (2)(b) of this section for such learning
2 community.
3 (d) Excluded from the limitations in subdivisions (2)(a) and (2)(c)
4 of this section are (i) amounts levied to pay for current and future sums
5 agreed to be paid by a school district to certificated employees in
6 exchange for a voluntary termination of employment occurring prior to
7 September 1, 2017, (ii) amounts levied by a school district otherwise at
8 the maximum levy pursuant to subdivision (2)(a) of this section to pay
9 for current and future qualified voluntary termination incentives for
10 certificated teachers pursuant to subsection (3) of section 79-8,142 that
11 are not otherwise included in an exclusion pursuant to subdivision (2)(d)
12 of this section, (iii) amounts levied by a school district otherwise at
13 the maximum levy pursuant to subdivision (2)(a) of this section to pay
14 for seventy-five percent of the current and future sums agreed to be paid
15 to certificated employees in exchange for a voluntary termination of
16 employment occurring between September 1, 2017, and August 31, 2018, as a
17 result of a collective-bargaining agreement in force and effect on
18 September 1, 2017, that are not otherwise included in an exclusion
19 pursuant to subdivision (2)(d) of this section, (iv) amounts levied by a
20 school district otherwise at the maximum levy pursuant to subdivision (2)
21 (a) of this section to pay for fifty percent of the current and future
22 sums agreed to be paid to certificated employees in exchange for a
23 voluntary termination of employment occurring between September 1, 2018,
24 and August 31, 2019, as a result of a collective-bargaining agreement in
25 force and effect on September 1, 2017, that are not otherwise included in
26 an exclusion pursuant to subdivision (2)(d) of this section, (v) amounts
27 levied by a school district otherwise at the maximum levy pursuant to
28 subdivision (2)(a) of this section to pay for twenty-five percent of the
29 current and future sums agreed to be paid to certificated employees in
30 exchange for a voluntary termination of employment occurring between
31 September 1, 2019, and August 31, 2020, as a result of a collective-
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1 bargaining agreement in force and effect on September 1, 2017, that are
2 not otherwise included in an exclusion pursuant to subdivision (2)(d) of
3 this section, (vi) amounts levied in compliance with sections 79-10,110
4 and 79-10,110.02, and (vii) amounts levied to pay for special building
5 funds and sinking funds established for projects commenced prior to the
6 effective date of this act April 1, 1996, for construction, expansion, or
7 alteration of school district buildings up to the amount that would be
8 generated by a levy rate equal to the levy rate for such project for the
9 2018-19 fiscal year. For purposes of this subsection, commenced means any
10 action taken by the school board on the record which commits the board to
11 expend district funds in planning, constructing, or carrying out the
12 project.
13 (e) Federal aid school districts may exceed the maximum levy
14 prescribed by subdivision (2)(a) or (2)(c) of this section only to the
15 extent necessary to qualify to receive federal aid pursuant to 20 U.S.C.
16 7701 et seq., as such sections existed on January 1, 2019 Title VIII of
17 Public Law 103-382, as such title existed on September 1, 2001. For
18 purposes of this subdivision, federal aid school district means any
19 school district which receives ten percent or more of the revenue for its
20 general fund budget from federal government sources pursuant to 20 U.S.C.
21 7701 et seq., as such sections existed on January 1, 2019 Title VIII of
22 Public Law 103-382, as such title existed on September 1, 2001.
23 (f) For each fiscal year, learning communities may levy a maximum
24 levy of one-half cent on each one hundred dollars of taxable property
25 subject to the levy for elementary learning center facility leases, for
26 remodeling of leased elementary learning center facilities, and for up to
27 fifty percent of the estimated cost for focus school or program capital
28 projects approved by the learning community coordinating council pursuant
29 to section 79-2111.
30 (g) For each fiscal year, learning communities may levy a maximum
31 levy of one and one-half cents on each one hundred dollars of taxable
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1 property subject to the levy for early childhood education programs for
2 children in poverty, for elementary learning center employees, for
3 contracts with other entities or individuals who are not employees of the
4 learning community for elementary learning center programs and services,
5 and for pilot projects, except that no more than ten percent of such levy
6 may be used for elementary learning center employees.
7 (3) For each fiscal year, community college areas may levy the
8 levies provided in subdivisions (2)(a) through (c) of section 85-1517, in
9 accordance with the provisions of such subdivisions. A community college
10 area may exceed the levy provided in subdivision (2)(b) of section
11 85-1517 by the amount necessary to retire general obligation bonds
12 assumed by the community college area or issued pursuant to section
13 85-1515 according to the terms of such bonds or for any obligation
14 pursuant to section 85-1535 entered into prior to January 1, 1997.
15 (4)(a) Natural resources districts may levy a maximum levy of four
16 and one-half cents per one hundred dollars of taxable valuation of
17 property subject to the levy.
18 (b) Natural resources districts shall also have the power and
19 authority to levy a tax equal to the dollar amount by which their
20 restricted funds budgeted to administer and implement ground water
21 management activities and integrated management activities under the
22 Nebraska Ground Water Management and Protection Act exceed their
23 restricted funds budgeted to administer and implement ground water
24 management activities and integrated management activities for FY2003-04,
25 not to exceed one cent on each one hundred dollars of taxable valuation
26 annually on all of the taxable property within the district.
27 (c) In addition, natural resources districts located in a river
28 basin, subbasin, or reach that has been determined to be fully
29 appropriated pursuant to section 46-714 or designated as overappropriated
30 pursuant to section 46-713 by the Department of Natural Resources shall
31 also have the power and authority to levy a tax equal to the dollar
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1 amount by which their restricted funds budgeted to administer and
2 implement ground water management activities and integrated management
3 activities under the Nebraska Ground Water Management and Protection Act
4 exceed their restricted funds budgeted to administer and implement ground
5 water management activities and integrated management activities for
6 FY2005-06, not to exceed three cents on each one hundred dollars of
7 taxable valuation on all of the taxable property within the district for
8 fiscal year 2006-07 and each fiscal year thereafter through fiscal year
9 2017-18.
10 (5) Any educational service unit authorized to levy a property tax
11 pursuant to section 79-1225 may levy a maximum levy of one and one-half
12 cents per one hundred dollars of taxable valuation of property subject to
13 the levy.
14 (6)(a) Incorporated cities and villages which are not within the
15 boundaries of a municipal county may levy a maximum levy of forty-five
16 cents per one hundred dollars of taxable valuation of property subject to
17 the levy plus an additional five cents per one hundred dollars of taxable
18 valuation to provide financing for the municipality's share of revenue
19 required under an agreement or agreements executed pursuant to the
20 Interlocal Cooperation Act or the Joint Public Agency Act. The maximum
21 levy shall include amounts levied to pay for sums to support a library
22 pursuant to section 51-201, museum pursuant to section 51-501, visiting
23 community nurse, home health nurse, or home health agency pursuant to
24 section 71-1637, or statue, memorial, or monument pursuant to section
25 80-202.
26 (b) Incorporated cities and villages which are within the boundaries
27 of a municipal county may levy a maximum levy of ninety cents per one
28 hundred dollars of taxable valuation of property subject to the levy. The
29 maximum levy shall include amounts paid to a municipal county for county
30 services, amounts levied to pay for sums to support a library pursuant to
31 section 51-201, a museum pursuant to section 51-501, a visiting community
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1 nurse, home health nurse, or home health agency pursuant to section
2 71-1637, or a statue, memorial, or monument pursuant to section 80-202.
3 (7) Sanitary and improvement districts which have been in existence
4 for more than five years may levy a maximum levy of forty cents per one
5 hundred dollars of taxable valuation of property subject to the levy, and
6 sanitary and improvement districts which have been in existence for five
7 years or less shall not have a maximum levy. Unconsolidated sanitary and
8 improvement districts which have been in existence for more than five
9 years and are located in a municipal county may levy a maximum of eighty-
10 five cents per hundred dollars of taxable valuation of property subject
11 to the levy.
12 (8) Counties may levy or authorize a maximum levy of fifty cents per
13 one hundred dollars of taxable valuation of property subject to the levy,
14 except that five cents per one hundred dollars of taxable valuation of
15 property subject to the levy may only be levied to provide financing for
16 the county's share of revenue required under an agreement or agreements
17 executed pursuant to the Interlocal Cooperation Act or the Joint Public
18 Agency Act. The maximum levy shall include amounts levied to pay for sums
19 to support a library pursuant to section 51-201 or museum pursuant to
20 section 51-501. The county may allocate up to fifteen cents of its
21 authority to other political subdivisions subject to allocation of
22 property tax authority under subsection (1) of section 77-3443 and not
23 specifically covered in this section to levy taxes as authorized by law
24 which do not collectively exceed fifteen cents per one hundred dollars of
25 taxable valuation on any parcel or item of taxable property. The county
26 may allocate to one or more other political subdivisions subject to
27 allocation of property tax authority by the county under subsection (1)
28 of section 77-3443 some or all of the county's five cents per one hundred
29 dollars of valuation authorized for support of an agreement or agreements
30 to be levied by the political subdivision for the purpose of supporting
31 that political subdivision's share of revenue required under an agreement
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