Trustee Manual: Budgeting and Finance
Chapter 12 Budgeting and Finance | Next Chapter | Previous Chapter | Table of Contents | PDF
A major board responsibility is to take the lead in efforts to secure adequate funding for the library. To be successful, board members must understand how funds are allocated to the library by their city or county government. From time to time, trustees will need to investigate additional sources of revenue in order to help fund special projects or build a capital reserve for long-range needs. The board may appoint a standing committee dedicated to finances and fundraising.
How are Libraries Funded?
It is the trustee's responsibility and duty to understand the details of their library's funding situation, the sources of their funds, and the county or municipal library budget process. Most public libraries are funded by public property taxes and/or other special taxes unique to a local jurisdiction. Often, it is necessary to supplement public funds with outside resources.
Tax Support:In Utah, local governments have two options for funding libraries through public monies. A dedicated library tax may be levied that is limited to .001 of the assessed valuation of taxable property within that jurisdiction. Or, in lieu of a dedicated library tax, the jurisdiction may fund library service from the local government general fund. This means that libraries reapply for their budget amounts each year, just as other departments dependent on the general fund. The standards for certified libraries require that the local government complies with maintenance of effort of funding support for the library. This means that the local government expends an amount not less than 90% of the amount actually expended on the library in the second preceding fiscal year, exclusive of capital outlay and one-time increases.
Supplemental Funds: Some of the resources that libraries have available to acquire supplemental funds include, Utah Community Library Enhancement Fund (CLEF) grants; Library Services and Technology Act (LSTA) grants, E-RATE and other federal grants; and contributions from library support groups or planned giving campaigns. City library boards have the authority to maintain custody of gifts, bequests, and endowment funds and to approve expenditures from those funds. Gifts and donations to a county library are made to the county, designated for the benefit and purposes of the library. Actual disbursements are generally made by the local government treasurer.
The Budget Development Process
Budgeting and planning are interwoven. The budget should be viewed as a planning tool, the map that the library follows during a fiscal period to attain its mission and planning goals. The first step in developing a library budget is to look at what the library hopes to accomplish in the coming year and the years ahead. The availability of a current long-range plan will make this step much easier because the plan should already document your community's library service needs and the library activities necessary to meet those needs.
The second step is to determine the total financial resources necessary for what the library wants to accomplish in the coming year. Often, increased funding is necessary because of increased costs, increased usage or new services that will be offered.
Advocating for the Budget
The library director and staff draft budget documents following the format required by the city or county. The library board or library board finance committee may have input into development of budget drafts. The board of trustees will then review the draft budget with the director, propose changes, and finally approve a finished budget.
After the written budget documents are approved by the board and submitted to the city or county, the final step in the budget process is securing the funding needed to carry out the planned service program. Trustees, as volunteer public representatives, are especially effective budget advocates. Trustees should be involved in presenting, explaining, and supporting the library budget that was approved by the library board.
When presenting the budget, tell your story and make your case. Don't just document the need for budget increases, but justify the base as well. Tell government officials, the media and the public who uses library services and what impact the library makes in their lives.