Eliminate the levy authority of educational service units and provide state funding to educational service units

Nebraska bill LB 389 eliminates the ability of educational service units (ESUs) to collect local property taxes for funding. Instead, it requires the state to provide direct funding to ESUs according to specified formulas. This change affects ESUs and the school districts that previously contributed to ESU budgets through local tax levies. The bill modifies existing tax levy limits for school districts and ESUs to remove their authority to raise funds via property taxes, shifting responsibility to state appropriations.