This paper compares state aid to each school system in Nebraska for school years 1997-98 and 1999-2000. State aid received in 1997-98 was the last before passage of LB-806, which set the current school funding formula. LB-1114, which caps local property tax levies, was adopted by the Legislature in 1996. The combined effects of these two laws determine the amount of local and state resources received by individual school systems. Analysis reveals that 90 school systems have lost 10 percent or more in state funding over the 2-year period. These school systems represent about 23,000 children, or about 9 percent of Nebraska's total school enrollment. The systems have lost nearly $15 million in state aid, money presumably not replaced by local property taxes. These school systems are generally small, with a median K-12 enrollment of 225 students, and high-performing, with a median high school completion rate of 97 percent. The vast majority of these school systems are in relatively densely populated areas of the state, in communities located relatively close together. This suggests that LB-806 and LB-1114 together provide an incentive for school systems in these areas to consider alternative structures such as consolidation or district unification. Policy recommendations are offered to maintain well performing, efficient, community-based schools. The 90 school systems are listed with their enrollments and losses in state aid. (SV)