NE LB123

State Treasurer must suspend state aid distribution to governmental units and political subdivisions that fail to comply with budget limits or property tax request authority requirements under the Property Tax Growth Limitation Act

Suspended funds are held for six months; compliant entities receive the funds back, while noncompliant entities forfeit the funds to be redistributed to other state aid recipients in the same county or returned to the Highway Allocation Fund or General Fund

Political subdivisions that fail to reach compliance within 12 months of receiving a delinquency notice become ineligible for all future state aid distributions until compliance is achieved

Cities and villages that fail to file required annual audits within six months face withholding of highway allocation funds (sections 39-2511 to 39-2520), with permanent ineligibility after 12 months of noncompliance

Amends sections 13-522, 13-3407, and 19-2907 of Nebraska statutes; approved by the Governor on March 25, 2025