85-1543.

Community college areas; distribution of funds; Coordinating Commission for Postsecondary Education; certify amounts; distributions; Community College Future Fund; created; use; investment; property tax; levy authorized, when.

(1) Beginning in fiscal year 2024-25, funds shall be distributed to community college areas as provided in this section in order to offset the funds lost by community college areas due to the elimination of their levy authority under subdivisions (2)(a) and (c) of section 85-1517.

(2) The amount to be distributed to each community college area under this section shall be equal to:

(a) For fiscal year 2024-25, the amount of property taxes levied by such community college area for fiscal year 2023-24 pursuant to subdivisions (2)(a) and (c) of section 85-1517 or the amount of property taxes that would have been generated from a levy of seven and one-half cents per one hundred dollars of taxable valuation, whichever is greater, with such amount then increased by three and one-half percent or the percentage increase in the reimbursable educational units of the community college area, whichever is greater. Such amount shall be calculated by the Coordinating Commission for Postsecondary Education and certified to the community college area and to the budget administrator of the budget division of the Department of Administrative Services by August 15, 2024; and

(b) For fiscal year 2025-26 and each fiscal year thereafter, the amount distributed under this section to such community college area in the prior fiscal year, increased by three and one-half percent or the percentage increase in the reimbursable educational units of the community college area, whichever is greater. Such amount shall be calculated by the Coordinating Commission for Postsecondary Education and certified to the community college area and to the budget administrator of the budget division of the Department of Administrative Services by August 15 of each year.

(3) The Coordinating Commission for Postsecondary Education shall annually certify the total amount to be distributed to all community college areas under subsection (2) of this section to the State Treasurer. The State Treasurer shall transfer the certified amount from the General Fund to the Community College Future Fund in ten equal payments distributed monthly beginning in September of the fiscal year and continuing through June.

(4) The Coordinating Commission for Postsecondary Education shall annually make distributions to the community college areas in the amounts determined pursuant to subsection (2) of this section. The distributions shall be made in ten equal payments distributed monthly beginning in September of the fiscal year and continuing through June. Community college areas shall receive no payments during the months of July and August.

(5) The Community College Future Fund is created. The fund shall be administered by the Coordinating Commission for Postsecondary Education and shall be used to provide state distributions to community college areas pursuant to this section. The fund shall consist of transfers authorized by the Legislature. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

(6) Beginning in fiscal year 2024-25, if the state fails to provide full funding of the amounts described in subsection (2) of this section for any fiscal year, each community college area may, if approved by a majority vote of the community college board of governors, levy an amount for such fiscal year under subdivision (2)(a) of section 85-1517 sufficient to generate revenue equal to the amount that would have been provided to the community college area under subsection (2) of this section if fully funded minus the amount that was actually provided to the community college area. The property tax levy provided for in this subsection is in addition to the maximum allowable property tax levy described in subdivision (2)(b) of section 85-1517 and any property tax levied for funding accessibility barrier elimination project costs and abatement of environmental hazards as such terms are defined in section 79-10,110.

(7) For purposes of this section, reimbursable educational unit has the same meaning as in section 85-1503.