UPDATING FLORIDAS STATE AID PROGRAM Analysis and Recommendations 2005.

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