Key Points

As is shown by the area chart above, state aid represents a smaller and smaller share of total tax resources available to counties than it did 20 years ago. A review of the chronology and aid description links below shows why this is the case: The original personal property tax replacement funds have been set out in statute at a defined amount, ($17.9 million in 1977 and $13.5 million after the passage of LB 1063 in 1992). However, the amounts actually appropriated have been less than that in most years. The appropriation was reduced in 1999 to shift aid from counties that benefited from LB 142 (1999), which changed the distribution of motor vehicle taxes. At that time $6.4 million was shifted from aid to counties to aid to community colleges and natural resources districts. Recent budget cuts have reduced the appropriation for this program further. The amount appropriated for 2002-03 is approximately $5.5 million.

The creation of the County Equalization program in LB 695 in 1998 provided an additional $4.5 million to counties. The only aid program that increases regularly for counties is street and road aid provided through the Highway Trust Fund.