NE LB440

Creates the State Education Leave Fund beginning January 1, 2026, funded by a 0.35% payroll fee on certificated teachers' taxable wages, with school districts contributing an equal employer match

Reimburses school districts for the cost of hiring substitute teachers during the first six weeks of a teacher's FMLA leave, with reimbursements beginning July 1, 2026

Prohibits teachers receiving this benefit from being required to use accrued personal or sick leave during the first six weeks of FMLA leave

Establishes the Education Retention Fund to receive surplus funds exceeding 20% of projected annual needs, with those funds dedicated to addressing teacher shortages and professional development

Requires annual reporting to the Legislature and annual audits by the Auditor of Public Accounts, with penalties for school districts that misuse funds