Page 104 - DLIS406_ACADEMIC_LIBRARY_SYSTEM

Unit 10: Financial Management

10.2 State Funding of Public Libraries Notes

10.2.1 Levels of State Funding

Per capita state tax support for libraries varies widely from a high of $40.06 in Ohio to $0.01
in Vermont and less than $0.01 in South Dakota. Pennsylvania ranks fifth at $4.90. The national
average is $3.21. The total operating revenue per capita reveals a wide range of total support
for libraries from federal, state, local and other sources of funding. Ohio again tops the list at
a total of $56.77 per capita, followed by Illinois at $53.07. At the low end is West Virginia at
$15.49 and Mississippi at $13.76. With an operating revenue of $24.22 per capita, Pennsylvania
ranks 38th. The national average is $32.21. Pennsylvania ranks very high in the dollar amount
of state funding per capita, but this is offset by its ranking close to the bottom in the amount
of local funding ($15.25). The national average of local funding per capita is $26.25.

Did u know? According to NCES statistics, per capita operating revenue from local sources
was under $3.00 for 8% of public libraries, $3.00 to $14.99 for 31% of
libraries, $15.00 to $29.99 for 33% of libraries, and $30.00 or more for 28%
of libraries.

10.2.2 Patterns of State Funding
The funding of public libraries by the states over the past decade. For each year, the percentage
of the total library revenue that was provided by the state, the dollar amount of state funding,
and the percentage of change from the previous fiscal year are given. It is clear that state
funding is a very important source of revenue for our nation’s public libraries, but for the
libraries in many states, not a reliable source of funding. Nationally, the percentage of total
public library funding provided by state governments in the aggregate has remained fairly
constant over the last decade between 10% and 13%. Local governments, the federal government,
and other sources such as fees, gifts, and donations provide the remaining 87–90%. While the
percentage of library funding provided by the states has remained fairly constant, the amount
of state funding in dollars increased from $671 million in 1995 to $909 million in 2004. The
total increase over the decade was 35%. The percentage of funding from state sources decreased
in each of the last three reporting years (2002, 2003, and 2004). In each of the previous seven
years, there had been increases in state funding the greatest being 12% in 1998. On a year-to-
year basis, fully one-third of the states have seen their level of state funding increase or
decrease by more than 10%. In 1998, 60% of the states had increases or decreases in funding
greater than 10%. Even increases and decreases greater than 50% are not uncommon.

10.2.3 2005 Public Library Finance Survey
The tables on pages 48–70 are derived from the 2005 Public Library Data Service Statistical
Report, 2 which featured a special survey on Public Library Finance. The data were collected
from 938 public libraries and includes information on government funding and statistics on
alternative funding streams for library support. This report is a project of the Public Library
Association and was designed to meet the needs of public library administrators and others
for library-specific data to inform and support a wide variety of management decisions. In
addition to the special survey, the PLDS annual report includes data from public libraries
across the country (and Canada) on finances, library resources, annual use figures, and technology.
The data reports give the average for each data element, the median value, and the number

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