109th Legislature, Second Session
March 13, 2026 - Bulletin 10
ITEMS OF INTEREST TO MUNICIPALITIES Stories inside: • LB 1071 and LB 1072: Bills with proposed budget adjustments for the 20252027 biennium advanced to Select File; Sen. Clouse’s amendment to remove provisions from LB 1072 relating to the MEF failed on a 20-16 vote • LB 1135: Landbank bill advances from the Urban Affairs Committee • LB 1010: Legislature advances battery storage bill • Session Calendar
League of Nebraska Municipalities
LEGISLATIVE BULLETIN
LB 1071 and LB 1072:
Bills with proposed budget adjustments for the 2025-2027 biennium advanced to Select File; Sen. Clouse’s amendment to remove provisions from LB 1072 relating to the MEF failed on a 20-16 vote
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relating to the proposed reduction in the MEF n March 9 and March 10, following funds for eligible municipalities. Sen. Clouse stated eight hours of debate on LB 1071 to that he supports changes to MEF but there needs to make mid-biennium budget adjustments, be a “structured process” with stakeholders which Speaker Sen. John Arch’s cloture motion to should happen next year. He noted that he will end the filibuster on General File received 35 introduce legislation in the 2027 session, regardless votes before the bill was advanced to Select of the vote on AM2258. File on a 32-14 vote. (33 votes are required for Elmwood Sen. Robert Clements, Chair of the cloture to end a filibuster.) Although several Appropriations Committee, opposed AM2258 amendments were proposed to LB 1071, only stating that the cut in MEF “is not going to one was adopted to expand grant programs by Sen. Stan Clouse hurt cities very much at all” but will help reduce the Nebraska Tourism Commission. District 37 the state’s budget deficit by $14 million. Sen. General File debate on LB 1072 began the afternoon of March 10. LB 1072 includes statutory Clements said projections for 2026 indicate there will be changes necessary to implement the mid-biennium budget $49 million (generated from the collection fee on local adjustments as well as a number of “cash fund sweeps” and option sales tax and insurance premium tax) with $35 transfers to address the state’s budget deficit. This session million of it going to municipalities. He also emphasized began with a projected $471 million shortfall which that the “$14 million (reduction from MEF) would be increased to about $646 million due to projections unused and come back to the state but not until the end by the Economic Forecasting Board on Feb. 27. The of the biennium” so the $14 million is being allocated to Appropriations Committee reduced the projected deficit the state now to reduce the deficit. Sen. Clouse responded by more than $500 million with a combination of budget during floor debate that the “excess funds of $14 million cuts, cash transfers, taking $130 million from the state’s should go back to municipalities with a reduced collection rainy-day fund, and $11 million from the Nebraska fee.” Thanks to Sen. Jane Raybould of Lincoln and Sen. Dan Environmental Trust Fund. Quick of Grand Island for making remarks in support of The Appropriations Committee approved adjustments which initially left a projected budget shortfall of $125 AM 2258. Although AM2258 failed to garner 25 votes, million; however, miscalculations relating to retroactive thanks to the following 20 Senators who voted in eligibility payments for Medicaid participants were favor of this amendment: J. Cavanaugh, M. Cavanaugh, discovered, resulting in a $140 million deficit. The Clouse, Conrad, DeBoer, Fredrickson, Guereca, Holdcroft, Legislature will correct the deficit from $125 million Hughes, Hunt, Ibach, Juarez, Lonowski, McKinney, G. to $140 million through an amendment during floor Meyer, Quick, Raybould, Riepe, Rountree, and Sanders. debate. Senators will need to make further cuts or identify The following 16 Senators voted no: Andersen, Arch, increased revenue to address the $140 million deficit before Armendariz, Bosn, Clements, DeKay, Dorn, Hallstrom, Hardin, Kauth, Lippincott, F. Meyer, Moser, Murman, adjourning sine die. Clouse amendment (AM2258) to LB 1072 to strike Sorrentino, and von Gillern; the following seven Senators provisions relating to the Municipal Equalization Fund were present and not voting: Ballard, Brandt, Jacobson, (MEF) failed to garner 25 votes. Click here to watch Storer, Storm, Strommen, and Wordekemper. The following six Senators were excused and not voting: Bostar, Dover, floor debate on AM 2258. On March 11, Kearney Sen. Stan Clouse offered AM Dungan, Hansen, Prokop, and Spivey. Continued on the next page / See LB 1071 2258 to LB 1072 to strike section 168, deleting provisions League Legislative Bulletin, March 13, 2026, Page 2
League of Nebraska Municipalities
LEGISLATIVE BULLETIN
LB 1135: Landbank bill advances from the Urban Affairs Committee L 2026
landbank can acquire commercial properties. B 1135 was introduced by the The Urban Affairs Committee adopted an Urban Affairs Committee and amendment to LB 1135 that includes the contains the ideas that were raised by provisions of LB 799, LB 842, LB 1163, and land bank advocates at an interim study LB 1168. last fall. LB 799 creates the Services Contract Reporting Several changes are made to the land LEGISLATIVE Act, which requires Omaha, counties with bank laws in LB 1135 including allowing SESSION populations over 500,000, and certain state a broader pool of people to be eligible to agencies to annually report service contracts serve on the land bank. Particularly in parts of rural Nebraska, it may be difficult to find people awarded during the prior fiscal year. Failure to comply to serve on land banks, and allowing the land bank results in suspension of state aid until the required report to draw on people who live three miles outside of the is submitted. corporate boundaries of the municipality will increase LB 842 allows cities of the first class, cities of the second the number of qualified and eligible people to serve. class, and villages to enter into contracts or agreements with The bill also gives additional flexibility to land banks private entities or other political subdivisions for parking on the issue of board member expertise. The language operations, including enforcement service. in LB 1135 brings Nebraska statutes more in line LB 1163 provides clarifying language to ensure that liens with other land bank laws across the country. The are properly placed on properties with delinquent property bill provides that voting board members must have assessed clean energy (PACE) loans. expertise in the fields relevant to land bank operations, LB1168 amends the Community Development Law to instead of the more specific qualifications currently authorize a community redevelopment authority to issue in law. The League and the land banks in the state conduit revenue bonds on behalf of a private investor under worked out an amendment with the Nebraska Realtors which the authority’s liability for repayment is limited to Association that preserves for standalone landbanks the ad valorem taxes generated by the project area. It also specific members of the board, including a realtor, if allows authorities to enter into taxpayer agreements with owners of land in the project area. such individuals can reasonably be found. The bill also expands the criteria for land banks to LB 1135 was advanced from the Urban Affairs Committee hold property for nonprofits, eases the reporting on a 7-0 vote. The bill has a priority designation, so it is requirements for land banks, and expands when the possible for the bill to be debated later this session.
LB 1072 Continued from page 2
The League is working with Sen. Clouse and others to On March 11, Speaker Arch’s cloture motion to end obtain more information regarding how the column entitled the filibuster on LB 1072 received 34 votes; the bill as “FY 27 Unadjusted Projected Aid” was developed. There amended was advanced to Select File on a 33-12 vote. have been varying numbers based on projections by the BACKGROUND Legislature’s Fiscal Office and the Nebraska Department On March 10, the League emailed a “MEF UP- of Revenue. Although some Senators and the Fiscal Office DATE” which included a rough draft of estimated still project a 5-10% loss of the MEF funds for eligible reductions in MEF based on projections for FY 27 municipalities, the League and others are concerned that given to the League by Neil Sullivan, State Budget the projections for increased MEF funds seem unrealistic Director. Click here for the email; click here for a and the loss may be greater than 10%. MEF Historical Aid Analysis. League Legislative Bulletin, March 13, 2026, Page 3
League of Nebraska Municipalities
LEGISLATIVE BULLETIN
LB 1010: Legislature advances battery storage bill
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n March 13, the Legislature advanced to select file LB 1010 introduced by Sen. Tom Brandt from Plymouth. LB 1010 is a bill supported by the public power industry in response to recent interest by private entities to build very large battery storage units in Nebraska that could charge at times when electric power is plentiful and discharge when power is needed. The bill provides for the Power Review Board's
approval authority over stand-alone energy storage resources and requires written consent of the impacted electric supplier prior to construction. The bill requires a private electric supplier to enter into a joint transmission development agreement with a public power entity and to maintain a contractual agreement with a public power entity for the output of the privately owned energy storage resource.
NEBRASKA UNICAMERAL LEGISLATURE 109th LEGISLATURE, SECOND SESSION SCHEDULE OF COMMITTEE HEARINGS The order of the bills listed may not be the order in which they are heard that day in committee.
Thursday, March 19, 2026 Agriculture Room 1525 - 12:00 p.m. AM2503
DeKay
Amending LB1187
Health and Human Services Room 1510 - 12:15 p.m. AM2642
DeKay
Amending LB912
League Legislative Bulletin, March 13, 2026, Page 4
LEGISLATIVE BULLETIN
League of Nebraska Municipalities
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Legislative Recess Days
January 19 – Martin Luther King Jr. Day February 16 – Presidents’ Day
February 13 March 2, 13, 16, 27 April 3, 6, 13, 14, 15, 16
*The Speaker reserves the right to revise the session calendar.
League Legislative Bulletin, March 13, 2026, Page 5
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