Transcript Library Finance and State Aid

Per Capita State Aid
Bob Keith
[email protected]
609-278-2640 x192
What is State Aid for public
libraries?
• Since the 1960s, the NJ Legislature has appropriated
funds to support a Per Capita Library Aid program
• Administered by NJ State Library
• Municipalities and counties annually submit an
application
• Libraries annually submit a report in the form of an online
survey, a Certification and other supporting
documentation as needed
Eligibility for State Aid – Compliance
with Laws and Regulations
• The municipality must be in compliance with all laws
governing the library such as minimum funding for
county and municipal libraries
• The library must be in compliance with all laws governing
the type of library (association, county or municipal)
• Municipal and county libraries must comply with laws
that cover government entities such as purchasing,
auditing, investing and hiring practices.
Eligibility for State Aid – Meeting
Minimum Service Requirements
• Minimum requirements based on decennial Census
population served must be met for numbers of
professional and other staff, operating hours, collections,
and various public service areas (N.J.A.C. 15:21-2.3)
• If not met, State Aid is reduced
• Exceptions may be made through petition to the State
Librarian.
Calculation of State Aid
• The amount of tax support in relation to the prior year’s
equalized valuation establishes the aid category; the
greater the funding relative to prior year’s equalized
valuation, the greater the aid category
• 5 aid categories – from $ .50 to $1.50 per capita
• The Decennial Census is used in the formula to calculate
payments
Calculation of State Aid (continued)
• Each minimum is related to the population served. For
example, libraries serving 7,500 people must have at a
minimum:
• A director who holds a NJ Professional Librarian
Certificate and works at least 35 hours per week
• 8,000 volumes
• 1/10 volume purchased per capita per year
• 30 open hours per week (offered over 5 days, three
evenings, and including some weekend hours)
Calculation of State Aid (continued)
The staff requirement increases by one for each
additional 4,000 people; libraries serving over
7,500 must have a professional director working
at least 35 hours per week and have an
additional 35 professional hours for each added
10,000 up to 50,000 population, and then an
additional 35 professional hours for each 20,000
people.
Overview
The vast majority of public libraries file the annual New
Jersey Public Library survey and meet all requirements
of Per Capita State Aid.
– Some libraries fail to meet criteria and this results in a
percentage loss of aid of either 50% or 100%
depending upon which item is failed.
– Failure to file a report or failure to attend at least 7
hours of trustee training per year causes a 100% loss
of aid as is not employing a full-time (35 hours per
week) professional librarian when serving a
population of 7,500 or more.
State Appropriation
• The last State fiscal year in which sufficient funds were
appropriated for the program was in FY 1990.
• In FY 2009, the amount was reduced to $7,973,000 and
reduced again in FY2010 to $7,176,000.
• In FY 2011, the amount was reduced to $3,639,240.
Use of PCSA Funds
• Library boards have great flexibility in determining the
use of state aid funds. Funds have been used for
projects as diverse as the purchase of property for a new
building to the automating of a library's card catalog.
Over the past few years, state aid funds have been
spent in roughly the following pattern:
• 40% on staff salaries, wages, or benefits
• 43% on library materials
• 13% on library operating expenses
• 4% on library capital projects
PCSA Timeline
January
Libraries receive electronic notification
from NJSL regarding the availability of
the Counting Opinions survey
(PLS+PCSA)
Application is transmitted to
municipality/county;
municipality/county mails the original
completed form to NJSL and a copy to
the library; library staff enter the data
in the survey
March
Legal cutoff date for application
April
Cutoff date for automatic extension
August-September
Letters regarding expected PCSA
award and any potential failures are
emailed to library. Libraries may
submit “Request for Exception” after
notification of potential failure.
Libraries receive notification regarding
“Request for Exception” from NJSL
October
Electronic notification that PCSA check
has been mailed (to municipality or
library) – be sure to follow up with
NJSL if not received in a timely
manner
Electronic notification regarding
posting on NJSL webpage of the
equalized valuation and operating
budget required to meet the 1/3 mill
minimum required by law (municipal
libraries only)
PCSA FLOW CHART
Governance
Library formed according to
the laws governing
municipal, county or
association libraries
START
HERE
Library
submits
annual
survey and
certification
sheet and
municipality
submits
application
to NJSL
Does not qualify to apply
Qualifies
Minimum Standards
Complies fully with all laws
7 hours per year of trustee
training
Staff hours including one
full time employee as
variously defined
NJSPL certified staff for
populations over 7,500
Materials
Hours, days, evenings of
service
Interlibrary loan
Children’s programming
Library webpage linked to
NJSL databases
Staff training
Fails standard/s
Applies for waiver
Not eligible for per capita
state aid grant.
Denied waiver
Granted waiver
Meets Standards
Eligible to receive
PCSA in full or in
proportion to
requirements met.
Accuracy Certification
PCSA Municipal Application
Annual Survey
• 4 purposes
– Ascertain compliance with PCSA requirements
– Fulfill the requirement of providing statistics to IMLS
– Provide statistics for planning, reporting, research, evaluation
and legislative and management decisions
– Fulfills N.J.S.A. 18A:74-11 requiring that each library receiving
PCSA provide an annual report to the State Librarian
• What does the survey collect?
• Why should the survey be as accurate as possible?
• What does IMLS have to do with it?
Annual Survey URL
• http://njsl.countingopinions.com
• Enter your UserID and Password
• If you need your UserID and Password please contact
me.
Go to CO website
Go to PCSA on NJSL website
PCSA Application Instructions
• Line 2. (Applicable to municipalities only): Enter the
expenditures made directly to the municipal, joint or
association library board, or placed into a reserve
account for the exclusive use of the library board during
the Survey Year.
• Line 3. (Applicable to municipalities paying county library
dedicated tax and counties only): Municipalities should
enter the county library dedicated tax as it appears in the
county Abstract of Ratables for the Survey Year unless
that amount was changed by added, omitted, or rollback
taxes during the Survey Year.
Counties should include the expenditures made directly
to the library commission, or placed into a reserve
account for the exclusive use of the library commission.
Report all added and omitted taxes received in the
Survey Year for expenditure to the library commission on
this line, not on line 4.
PCSA Application Instructions
• Line 4. (Applicable to both municipalities and counties): Enter here
the amount spent in the Survey Year for library operations in addition
to the sums appropriated in the municipal budget or the county
library dedicated tax: for example, funds spent for the payment of
library fringe benefits, insurance, building maintenance, utilities, etc.
These costs paid on behalf of the library by the municipality or
county must be supported by expenditure documents (invoices,
contracts, payroll records, etc.). Attach an itemized statement
detailing the additional expenditures. The library director, a member
of the library board of trustees or county library commission, and the
chief municipal financial officer or county finance officer, must sign
this statement.
• Line 7. Enter here any state aid balances held and unspent as of
December 31 of the Survey Year that have been held for more than
two years. Please note that this amount cannot be greater than the
amount reported on Line 6. “N/A” may be reported if the
municipality/county does not hold PCSA funding for the library.
PCSA Application Instructions
• Line 9. (Optional) Enter here capital expenditures for
library purposes. Capital expenditures are not reported
on any other line. This information will be used by the
State Library for informational purposes only.
• http://ldb.njstatelib.org/state_aid
Calculating Municipal
Expenditure
• Expenditure = EqVal x 1/3 mill
• Prior year Equalized Valuation =
$921,534,000
• 1/3 mill = 0.000333333
• Minimum level of support = $307,178
• Spreadsheets located at
http://ldb.njstatelib.org/State_Aid
Calculating PCSA
• Step 1 Rate determination
– $0.50 to $1.50 as determined the formula:
Expenditures/Equalized Valuation= Rate
– If Expenditure = $340,000 and EqVal = $700,000,000 then Rate
= 0.00048571 which is equals a $1.25 Rate
Calculating PCSA (continued)
Rates: Each municipality or county that supports, in whole or in part, library
service from municipal or county tax sources pursuant to chapter 33 or 54 of
Title 40 of the Revised Statutes shall qualify for one of the following:
•
$0.50 per capita if its annual expenditure for library services is less than 1/5
mill per dollar upon the equalized valuation.
•
$0.75 per capita if its annual expenditure for library services is equal to or
more than 1/5 mill, but less than 1/4 mill per dollar upon equalized valuation.
•
$1.00 per capita if its annual expenditure for library services is equal to or
more than 1/4 mill, but less than 1/3 mill per dollar upon equalized valuation.
•
$1.25 per capita if its annual expenditure for library services is equal to or
more than 1/3 mill, but less than 1/2 mill per dollar upon equalized valuation.
•
$1.50 per capita if its annual expenditure for library services is equal to or
more than 1/2 mill per dollar upon equalized valuation.
Calculating PCSA
(continued)
• Step 2. Unadjusted PCSA = Rate determination X
population (decennial census).
– Unadjusted PCSA = 1.25 x 10,000 = $12,500.
• Step 3. Adjusted PCSA = Unadjusted PCSA minus
prorated reductions and/or deductions.
– Current proration factor is approximately .368
– Adjusted PCSA = $12,500 x .368 = $4,600
Calculating PCSA (continued)
Reduction/Prorating of aid for failure
to meet minimum requirements
N.J.A.C.
Covers
Loss
15:21-2.2
Board or Commission
100%
15:21-2.3
1/3 Mill, Trustee training, Certified Librarians
100%,50%
15:21-2.4
Employees
50%
15:21-2.5
Materials – Basic book collection
Materials – Annual purchases
Materials – Periodicals
Materials – Free public Internet access
50%
50%
50%
50%
15:21-2.6
Service – Hours
Service – Weekends and evenings
Service – Professional and staff training
50%
50%
50%
Follow-up Resources
• NJ Statutes and Regulations pertaining to libraries at
http://ldb.njstatelib.org/Library_Law
• NJ State Library consultants
http://ldb.njstatelib.org/staff_contacts
• NJ Library Association webpage
http://www.njla.org
• Pat Tumulty
[email protected]
Questions?
[email protected]
609-278-2640 x192