MONEY MATTERS AND FUNDING SOURCES
Texas public libraries are funded by various mixtures of public and
private money.
5.1 PUBLIC FUNDING
The largest portion of funding comes from appropriations by the library's
governing body; i.e., a municipal library derives its primary funding
from the city budget, and a county library from the county budget. Some
municipal libraries also receive supplemental funding from their county
governments to support services provided to users residing inside their
county but outside their city limits. These funds support the library's
operating and capital budgets. Local bonds are typically issued for
construction projects such as library buildings and major renovation
and expansion projects.
State and federal funding is allocated through the Texas library system
program. State and federal grants are available to libraries through
an application process. All public libraries are invited to apply for
these competitive grants. These grants are generally available to enable
libraries to meet needs specified in the grant announcement. Every year
the Texas State Library and Archives Commission offers grants for special
programming opportunities. Announcements of these grants are sent to
libraries through mailings, professional newsletters, and from the ten
regional system offices.
Although Texas public libraries are prohibited from assessing charges
for most services, Title 13 of the Administrative Code allows
fees to be assessed for some library services. The following charges
are permitted at the discretion of the library's governing authority:
reserving library materials; use of meeting rooms; replacement of lost
borrower cards; fines for overdue, lost, or damaged materials in accordance
with local library policies; postage; in-depth reference services on
a contractual basis; photocopying; telefacsimile services; library parking;
service to non-residents; sale of publications; rental and deposits
on equipment; and charges for the use of materials and machine-readable
databases not owned by the library, major resource center, or regional
library system for which the vendor or supplier has charged a borrowing
fee.
5.2 Library Districts
In 1997, the 75th Texas Legislature passed the Library Districts
Act (codified as Chapter 326, Local Government Code), relating
to the creation, administration, powers, duties, operation, and financing
of library districts in Texas. This legislation allows voters in local
jurisdictions to create a public library district to be funded by up
to a half-cent in local option sales tax. In 1999, the 76th Texas Legislature
amended the law to allow voters in counties of voters numbering 100,000
or more to approve library districts.
There are currently nine library districts in Texas and many other
communities plan to establish them. Existing districts include the Wimberley
Village Library, the Benbrook Public Library, the Salado Public Library,
the Wells Branch Community Library, and the Westbank Community Library.
The Westbank Community Library was the first library district created,
and the library was the major force behind the 1997 legislation the
provided for the creation of library districts.
Library districts can be created in any county of the state. The district
may include any contiguous territory within a single county. The district
boundaries can include any territory that is part of a municipality
that operates a municipal public library as long as the governing authority
of the municipality consents.
The purpose of a library district is to establish, equip, and maintain
one or more public libraries for the dissemination of general information
relating to the arts, sciences, and literature, and open free of charge
to all members of the public under identical conditions.
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5.3 PRIVATE FUNDING
Private funding for public libraries comes from a variety of sources.
Friends of the Library. Friends of the Library groups
(discussed fully in Chapter 8) perform a vital function in local fundraising
efforts on behalf of the library. They also serve as recipients of cash
donations made to their libraries, whereby those monies may be held
and released to the library as needed.
Private Grants. Businesses, especially large corporations,
often donate money to community services through grants, as do local
foundations, and these agencies can be important sources for private
funding of public libraries. These grants are also subject to an application
process, and usually they require proof of the availability of matching
funds from the library before the grant application will be considered.
Upon request, TSLAC will provide a list of private entities that have
a history of awarding grants to public libraries.
Foundations. Some Texas public libraries establish foundations
for their own benefit and seek to attract major donations. Foundations
are fundraising entities apart from the library board and Friends groups,
and they have their own boards of directors. Foundations may be established
for specific purposes, such as the collection of public art to be displayed
in library buildings or on library grounds. They also may be established
for more general purposes, such as highly specialized and/or expensive
programs, collections, or construction projects. Other foundations are
established to simply provide additional funding for operational expenses
such as shelving or ongoing programming.
Partnerships. Partnerships are becoming a popular way
for libraries to enhance their programming and services by sharing costs
with outside agencies. Partnerships are formed when a library and one
or more public or private agencies share the cost of a particular program,
service, or facility. The project helps all participants achieve their
goals and objectives and commonly serves all parties' various constituencies.
Partnerships enable libraries to offer programs and services they could
not otherwise afford.
5.4 USES OF FUNDING
A library provides materials and services to all users in the community
and, in many cases, to other communities through cooperative services.
To provide satisfactory service, money is necessary for an attractive,
inviting, and efficient building in a central location; for a wide variety
of materials and resources to meet informational, educational, and recreational
needs; and, most importantly, for a competent and effective staff to
assist users and to organize materials so they are accessible.
Customarily, local funds support basic services such as buildings,
materials collections, salaries, and general operating expenses. State
and federal funds are used for state and regional interlibrary cooperation,
collection development, and program innovations. Private sources usually
specify uses for the money they donate.
Board members need to be aware of the particular mix of funding that
supports their library. In most libraries, budget preparation is the
library director's job with input from staff. Still, all board members
need to understand and support their library's budget. The library director
should keep board members informed about budgeting issues and practices
in their library and, as directed, from their administrative and elected
officials.
5.5 BOARD INFLUENCE
Board members may influence the funding process in several ways. They
may be called upon to explain the library's budget, or to make presentations
at budget hearings. A thorough knowledge of the financial status and
budget procedures facilitates support from the governing body that allocates
funding and from the taxpayers who provide these funds.
Active members know the assets of other libraries in the area as well
as their own. They need to visit libraries frequently. Can you borrow
the materials you want? Books? Records? Films? Prints? Does anyone else
want or need them? How much money is needed to address those needs?
Is it possible to translate the informational needs of the people of
the community into taxes for the individual citizen? Is it possible
to find other sources of funds?
Library board members also know the library's goals and objectives
and can show the correlation between library goals and budgetary requests.
They should expect to serve as liaisons between the library and the
local governing body. They can also provide great service by fostering
good relations and raising library visibility with state and federal
legislators.
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