Interim study to review the impact of unfunded and underfunded mandates on counties and county governments

109th Legislature (2025-2026) Introduced by Rick Holdcroft

The bill asks an interim study to quantify how unfunded and underfunded state mandates burden Nebraska counties and identify possible changes or eliminations.

Notice of hearing for October 03, 2025

Overview

LR 195 is a Nebraska Legislative Resolution proposing an interim study to assess the impact of unfunded and underfunded mandates on counties and county governments. Introduced May 14, 2025, the resolution designates a legislative study by the Government, Military and Veterans Affairs Committee to identify burdens, examine funding gaps, and consider potential changes to mandated programs or services.

Purpose and Scope

Main goal: Evaluate how unfunded/underfunded mandates enacted by the Legislature affect counties and county governments, focusing on expenditures incurred without corresponding state funding.

Key areas of examination: 1) Statutes that impose the largest unfunded or underfunded obligations on counties. 2) Any resulting increases in county property taxes to meet these obligations. 3) Mandated programs or services that are unfunded or underfunded and could be changed, eliminated, or repealed.

Process: The study may involve consultation with other legislative committees, officers and employees, and other stakeholders.

Provisions and Activities

The Government, Military and Veterans Affairs Committee is designated to conduct the interim study.

Upon completion, the committee must prepare a report of findings and recommendations to the Legislative Council or Legislature.

The study is intended to inform future legislative action by identifying burdens and exploring potential adjustments to mandates.

Procedural Timeline and Status

Introduced: May 14, 2025.

Initial referrals: Referred to Executive Board (May 14, 2025) and then to Government, Military and Veterans Affairs Committee (May 19, 2025).

Hearing notice: Notice of hearing for October 3, 2025 (issued August 6, 2025).

Outcome goal: Final report of findings and recommendations to the Legislative Council or Legislature after the study.

Impacts and Who Is Affected

Primary beneficiaries/targets: Counties and county governments, which shoulder costs for mandated programs and services.

Potential downstream effects: If burdens are identified, the Legislature could consider changes to funding mechanisms, modify or repeal unfunded mandates, or adjust related statutory requirements; potential indirect effects on county budgeting and property tax processes.

Bottom Line

LR 195 seeks to illuminate the fiscal impact of unfunded and underfunded state mandates on counties, quantify tax or budgetary pressures, and identify candidate programs or services for modification or elimination. The interim study process provides a pathway for informed legislative decisions without immediate funding changes, with a final report due after the study period.

Bill