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LR 16CA

Constitutional amendment to require the Legislature to reimburse political subdivisions

109th Legislature (2025-2026)

Requires Nebraska to reimburse political subdivisions for new duties or expanded services imposed after 2026, via dedicated funding or higher state revenue distributions.

Title printed. Carryover resolution
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Bill Summary · LR 16CA

Summary of LR 16CA — Constitutional Amendment to Require State Reimbursement to Political Subdivisions

Overview

LR 16CA is a proposed constitutional amendment in Nebraska that would require the state to reimburse political subdivisions for new responsibilities or increased levels of service imposed after 2026. The measure seeks to ensure that local governments are not financially burdened by state-created programs or expanded services unless fully funded by the state.

  • Bill number: LR 16CA
  • Title: Constitutional amendment to require the Legislature to reimburse political subdivisions
  • Type: Constitutional amendment (proposed), placed on the ballot if advanced
  • Introduced: January 15, 2025
  • Status: Notice of hearing for February 27, 2025
  • Introduced by: Urban Affairs Committee (Chair: Senator Terrell McKinney)

What the bill would do

  • Prohibit the Legislature from imposing financial responsibility on political subdivisions for:
    • A program created after the year 2026, or
    • An increased level of service required after 2026 (related to a pre-existing program)
  • Reimbursement by the state would be required in order for a subdivision to bear these costs. Reimbursement methods include:
    • A specific state appropriation, or
    • An increase in state distributions of revenue to the affected political subdivision
  • The amendment would apply to new or expanded responsibilities beginning after 2026.

Key provisions and changes

  • Location in the Nebraska Constitution: Amends Article III, Section 22.
  • Financial accountability: Local governments (cities, counties, school districts, etc.) would only accept new or expanded state-imposed duties if the state funds them fully.
  • Reimbursement mechanism: The state must provide reimbursement through either a dedicated appropriation or a higher distribution of state revenues to the relevant subdivision.
  • Scope: Applies to programs or service levels created or expanded after 2026; programs established before 2027 are not covered by the new requirement.

Who is affected

  • Political subdivisions in Nebraska (cities, counties, school districts, special districts, etc.) that would otherwise incur costs due to state-imposed programs or expanded services beginning after 2026.
  • State government and its budgeting processes, which would need to include explicit reimbursements for eligible post-2026 duties.

Procedural and timeline aspects

  • Introduced: January 15, 2025
  • Referred to Committee: January 17, 2025 (Government, Military and Veterans Affairs)
  • Hearing notice: February 27, 2025 (Senator Rita Sanders, Chair)
  • Ballot submission: If advanced, the amendment would be submitted at the November 2026 general election for voter approval or rejection.
  • Ballot language (summary): “A constitutional amendment to require the state to reimburse political subdivisions for responsibilities imposed by the Legislature after the year 2026 or for increased levels of service required by the Legislature after the year 2026.” Ballot options: For / Against.

Potential implications

  • Fiscal impact: Creates a constitutional obligation for state funding of post-2026 local duties, potentially altering state budgeting and revenue distribution practices.
  • Local government autonomy: Could reduce pressure on local governments to absorb state-mrown costs for new or expanded programs.
  • Legislative budgeting process: May necessitate explicit appropriations or adjusted revenue-sharing to ensure timely reimbursement.

This summary captures the bill’s purpose, provisions, affected parties, and key timelines based on the introduced text and hearing notice.

Compiled from official sources — confirm details with the bill’s official record.

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