Spending and Revenue Graphics

Nebraska’s General Fund is state government’s primary spending account, funded mostly by sales and income tax revenue. The Legislature's budget debates are centered around the use of this money. Here are the top recipients of Nebraska's General Fund dollars.

Excluding federal funds, Nebraska state government’s two largest sources of revenue are sales & use tax along with income tax.

Notes:

- In the fiscal year ended June 30, 2025, the State of Nebraska received more than 42% of its funding from the federal government in the form of grants and contracts, including for functions such as Medicaid and highway construction.

- In the same fiscal year, the State of Nebraska received over 45% of its funding from various state taxes — primarily income taxes and sales & use taxes.

- Meanwhile, property taxes are assessed and collected at the local level — and are used locally — primarily by K-12 school districts, counties, and cities. State government does not collect or receive property tax revenue.

Nebraska’s General Fund is the state government’s primary spending account, funded largely by sales & income taxes. Here’s a look at recent General Fund expenditures and receipts, as well as transfers out of the General Fund (primarily to offset property taxes collected by local government, including K-12 school districts). These transfers have occurred mostly to pay for the State’s:

- School Property Tax Relief Fund ($750M in 2025) to provide property tax credits for K-12 school taxes;

- Property Tax Credit Fund ($395M in 2025) to provide credits on property owners’ tax statements from local government;

- Education Future Fund ($250M in 2025) to provide K-12 special education and foundation aid; and

- Community College Future Fund ($253.3M in 2025) to provide community college funding.

COMPARISON: In FY 2019-20, the State's property tax relief programs (Property Tax Credit, Personal Property Tax Exemption, and Homestead Exemption) totaled approximately $381.1 million.

Five years later, in FY 2024-25, the State's property tax relief programs (listed above, plus $149 million for the Homestead Exemption) totaled roughly $1.8 billion.

Here's a look at the state government’s General Fund budget for fiscal year 2025-2026.

Notes:

- The General Fund is the state government’s primary spending account, funded mostly by Nebraska’s individual income tax, corporate income tax, and sales tax. The Legislature’s budget debates usually focus on the use of this money.

- This overview does not include the more than $1.7 billion in transfers out of the General Fund, primarily to provide state dollars for relief of locally imposed property taxes. (School Property Tax Relief Fund [$780M]; Property Tax Credit Fund [$422M]; Community College Future Fund [$271.4M]; and Education Future Fund [$242M]).

- General Fund transfers-out have grown from $9,140,000 in fiscal year 2005-2006 to $1,716,356,476 in fiscal year 2025-2026.

This is an overview of the State of Nebraska's General Fund obligations (including transfers out to cash funds).

Notes:

- The General Fund is the state government's primary spending account, funded mostly by Nebraska's individual income tax, corporate income tax, and sales tax. The Legislature's budget debates usually focus on the use of this money.

- This chart displays General Fund obligations by major category when state appropriations are combined with transfers out to cash funds.

- For Fiscal Year 2026-27, the total for General Fund appropriations plus transfers to cash funds is $7.07 billion.