UPDATING FLORIDA’S STATE AID PROGRAM
Analysis and Recommendations2005
Contents Introduction
State Aid Today
Issues
Recommendations
Next Steps
Introduction
A review of the State Aid program was initiated by the State Librarian in response to requests from the library community.
Task Force MembersWendy Breeden, Lake County Library SystemMary A. Brown, Pinellas Public Library CooperativeEugene Fischer, West Florida Regional LibraryDanny Hales, Suwannee River Regional LibrarySol Hirsch, Alachua County Library DistrictEd Kilroy, Osceola County Library SystemMike Knievel, Volusia County Public LibraryRita Maupin, Calhoun County Public LibraryBob Melanson, Winter Park Public LibraryRaymond Santiago, Miami-Dade Public Library SystemJulie Sieg, Marion County Public Library SystemJoe Stines, Hillsborough Public Library Cooperative
Introduction
Review Process Task Force State Library and Archives Staff April to September 2005 3 meetings and 2 conference calls Public Library Directors’ Meeting, Oct.
2005 - presentation and discussion
Part I: State Aid Today
State Aid Today
Incentive program
Grants based on local money spent on library services
Encourages local support for public library service
State Aid Today
State Aid Recipients - 67 counties and 18 municipalities
FY 2005-06 Appropriation - $31,849,233
State Aid Today
Funding Overview
FY 2005-06 $31.849 millionFY 2004-05 $31.849 millionFY 2003-04 $31.849 millionFY 2002-03 $32.4 millionFY 2001-02 $32.4 millionFY 2000-01 $31.4 million
State Aid Today
Operating Grants
Equalization Grants
Multicounty Grants
Declining Operating GrantsFlorida State Aid Distribution
11% 13% 14%
7% 7% 7% 7% 7% 7%
70%77%77%79%79%82%
15% 16% 22%
0%
20%
40%
60%
80%
100%
FY2000-2001$33.4 million
FY2002-2003$32.4 million
FY2004-2005$31.849 million
% of funds per grant type
Multicounty Grants
Equalization Grants
Operating Grants
Operating Grants Available to qualified county and municipal
public libraries
More libraries eligible than in past
Legislature can provide up to 25 cents for each local dollar spent FY 2000-01 - 10 cents provided for each
dollar spent FY 2005-06 - 5 cents provided for each
dollar spent
Operating Grants Calculated after the Equalization and
Multicounty Grants are determined using the remaining funds – prorated
Distributed to all participating libraries
Decreasing as libraries qualify for more Equalization funding
Equalization Grants
Available only to counties
(1) that qualify for Operating Grants
and
(2) have limited tax resources
Equalization Grants
Calculated first Fully funded - not prorated Based on three factors:
1. Fiscal Capacity (eligibility)2. Need (eligibility)3. Local Effort (amount of grant)
Increase as local expenditures increase
Equalization Factor 1--Fiscal Capacity
Considers a county’s ability to fund public services
Based on the value of a mill - after adjustments are made
Must rank among the lower 34 counties
Note: A mill is $1 tax for each $1,000 of property value.
Equalization Factor 2 -- Need
County’s per capita expenditures for library service must be below the statewide average
Equalization Factor 3 --Local Effort Reward for counties that spend a higher
proportion of their limited resources for public library service
Receive a match of 50 cents on the dollar if they spend more than statewide average
Receive a match of 25 cents on the dollar if they spend less than statewide average
Multicounty Grants Provide funding support for rural
counties with low tax bases and limited resources
Enable counties to share resources
Currently there are nine multicounty public library systems with two to four counties each
Multicounty Grants Fully funded – not prorated
Provide a match on local expenditures up to $1 million based on the number of participating counties
Three-county systems also receive a base grant of $250,000
Two-county systems do not receive a base grant
Part II: The Issues
Guiding Principles
Continue to tie State Aid to local funding
State Aid is important to libraries with limited financial resources
Changes should not undermine Equalization and Multicounty Grants
Guiding Principles Changes should not decrease grants for any
library as long as local expenditures remain the same
Grants benefit different libraries in different ways
Stagnant State Aid appropriations and rapid population growth have created funding shortages for some counties
Major Issues Operating Grants do not need modification
Equalization & Multicounty Grants need to be strengthened
The balance among the three grant programs must be restored to reverse the continued decrease in Operating Grants
Equalization Grant Issues The “need” factor requires further
review
Libraries that no longer qualify for Equalization Grant need time to prepare to operate without it
Counties with ample resources may still qualify
Multicounty Grant Issues Continue incentives to encourage larger
multicounty library systems
Continue match on local expenditures
Add a base grant for two-county systems
Increase base grant for systems with three or more counties
Part III: Recommendations
Recommendations
1. No change for Operating Grants
2. Equalization and Multicounty Grants provide much-needed support to low-wealth counties
3. Keep the current “fiscal capacity” criterion for Equalization Grants
Recommendations
4. Replace the current “need” factor with one of two factors:
Operating millage subject to the 10-mill cap when compared to statewide average
or Per capita income equal to or below the
statewide average
Recommendations
5. Add a three-year phase out for a county that no longer qualifies for an Equalization Grant
Recommendations
6. County cannot reenter the Equalization Grant program once it fails to meet the qualification requirements
Recommendations
7. Limit the amount available to fund Equalization Grants to no more than 15 percent of the total appropriation
8. Limit a county’s Equalization Grant to no more than 10 percent of the amount available to fund Equalization
Recommendations
9. Multicounty library systems must include at least one county that qualifies for an Equalization Grant
10.Provide a $50,000 base grant for two-county multicounty library systems as soon as the legislation passes
Recommendations
11. Increase the base grant for multicounty libraries with three or more counties to $350,000 when the appropriation is at least $32,804,710, which is three percent more than the FY 2005-06 appropriation
Recommendations
12. Eliminate current language that allows an increase in the base grant for multicounty libraries based on the cost of living
13. Keep the current match on local expenditures for multicounty libraries
Recommendations
14. Do not prorate Multicounty Grants
15. Freeze the amount available to fund Equalization at $7,090,792 (FY 2005-06 amount) until State Aid reaches at least $47,272,000 (15 percent of the appropriation for Equalization)
Next Steps Changes to the State Aid grant
program require action by the Florida Legislature
Recommended changes may go forward for consideration in 2007
Approved changes would become effective for FY 2007-08