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LB 260

Provide, change, and eliminate provisions relating to appropriations

109th Legislature (2025-2026) Introduced by John Arch

LB 260 updates mid-budget appropriations for FY2023‑24 and FY2024‑25, reallocates unexpended balances (including ARPA/SFRF) and tightens salary limits to reflect new funding and co

Approved by Governor on May 21, 2025
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Bill Summary · LB 260

Summary — LB 260 (2025)

Provide, change, and eliminate provisions relating to appropriations
Introduced by Speaker Arch at the request of the Governor — Approved by the Governor May 21, 2025 (with emergency clause)

Purpose and intent

LB 260 is part of the Governor’s biennial budget recommendations and makes mid‑biennium adjustments to appropriations for state operations and aid for FY2023‑24 and FY2024‑25. The bill updates funding where forecasted costs changed since prior appropriation acts, reappropriates certain unexpended balances, and clarifies budget‑administration rules (including salary‑limit definitions). The bill contains an emergency clause, so its provisions take effect immediately upon the Governor’s approval.

Key provisions and changes

  • Appropriations language: sets and amends specific appropriations for agencies and programs for FY2023‑24 and FY2024‑25 (examples in the enacted text include modest program adjustments such as Clerk of the Legislature — $55,000 Cash Fund; State Dept. of Education — $331,066 total with $231,066 General Fund; Board of Parole — $150,000 General Fund; Homestead Exemption — $2,000,000 General Fund for state aid).
  • Unexpended balances/certified encumbrances:
    • Lapses General Fund, Cash Fund, and Revolving Fund appropriations existing on June 30, 2023, in excess of expended and certified encumbrances unless otherwise provided.
    • Reappropriates certified encumbrance amounts and unexpended FY2023‑24 balances for use in FY2024‑25 as specified.
  • ARPA SFRF reappropriation: reappropriates unexpended Coronavirus State Fiscal Recovery Fund (American Rescue Plan Act) balances to the same agencies/programs, preserving any original limitations unless otherwise indicated.
  • Salary limit rules:
    • Defines “salary limit” and what counts as salary/per diem (broad definition including many forms of remuneration but excluding state contributions for retirement, social security, and insurance).
    • Sets agency salary/expenditure limits for permanent and temporary salaries and per diems; allows increases only when excess federal grant funds are available and approved by the Governor or through specified processes.
    • Provides for increases to limits by certified encumbrances and administrative increases to cover lump‑sum payouts of accumulated leave under specified circumstances.
  • Administrative provisions: directs the Director of Administrative Services to draw warrants and the State Treasurer to pay warrants from appropriate funds upon presentation of proper documentation.

Fiscal and administrative notes

  • Two fiscal note versions were filed (Feb 14 and May 8, 2025). The bill implements the Appropriations Committee’s recommended FY2024‑25 deficit adjustments (committee report and the Appropriations Committee’s biennial budget document provide detailed dollar tables).
  • AM831 (Appropriations Committee amendment) was adopted and became the bill; subsequent floor amendments (AM1362) and Enrollment & Review amendments (ER78) were adopted prior to final passage. FA156 was filed then withdrawn.

Who is affected

  • State agencies and programs (operating budgets, salary limitations, and state aid allocations).
  • Recipients of state aid programs specifically adjusted (e.g., homestead exemption recipients via a $2,000,000 appropriation).
  • Agencies holding unexpended or encumbered federal SFRF (ARPA) funds, which are explicitly reappropriated subject to prior limitations.

Procedural/timeline aspects

  • Introduced: January 15, 2025; referred to Appropriations.
  • Hearing: February 18, 2025 (Appropriations Committee).
  • Committee: AM831 advanced to General File; AM831 and later AM1362 and ER78 were adopted on the floor.
  • Final Reading: Passed May 15, 2025 (vote 41‑7‑1) with emergency clause.
  • Presented to Governor: May 15, 2025; Approved by Governor: May 21, 2025 (effective immediately due to emergency clause).

For detailed line‑item amounts and the committee’s revenue/deficit discussion, see the Appropriations Committee’s “FY2025‑26 and FY2026‑27 Biennial Budget — FY2024‑25 Deficit Adjustments” (published April 2025) and the published fiscal notes.

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

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