NE LB389

Educational service units (ESUs) lose their authority to levy property taxes beginning in fiscal year 2028-29, ending the current maximum levy of 1.5 cents per $100 of taxable valuation

State funding replaces the eliminated property tax revenue starting in 2029, with initial distributions equal to each ESU's 2027 property tax levy plus 3.5%

Annual state distributions increase by 3.5% each year thereafter, calculated based on the prior year's distribution amount

The Department of Revenue determines distribution amounts and payments occur in two equal installments: on or before March 31 and August 31

Only ESUs with four or more member school districts, or those composed of a single Class IV or Class V school district, may levy taxes through fiscal year 2027-28