Local libraries are preparing their budgets for next year in the shadow of Senate Enrolled Act 1, which is expected to slash their available revenue in the coming years.
The new law, signed by Governor Mike Braun in April of this year, will lower the amount of property taxes available to taxing units, including libraries. The bill additionally makes it so county or city governments don’t have to share revenue with libraries, a change from the past.
Indiana has 236 library districts, and this bill will impact public libraries differently across the state. Here’s how Johnson County libraries are preparing.
Lisa Lintner, director of Johnson County Public Library, which has four branches in Johnson County, said local income taxes currently account for 40% of JCPL’s operating budget. If JCPL does not receive the full amount possible from local income taxes, it could result in devastating losses and library services could suffer greatly.
This could include closing library locations, reducing hours, staff, programming, services and resources.
“In short, if our services are cut, our community will see the effects of a less-literate, less-educated and less-engaged society,” she said.
For JCPL, the changes to property taxes for the next year are expected to reduce their revenue by over $200,000, and by 2027, public libraries that receive local income tax will have to petition to county council for approval of funds for the 2028 budget.
As written, no minimum amount of LIT must be approved for library districts, but there is a maximum amount that can be approved, Lintner said. Even if the county council chooses to give JCPL the maximum amount each year, the budget will be much tighter and there will be less ability to plan spending, she said.
“Because LIT will need to be approved annually, and with no set minimum amount of approval, the budgeting and planning process will be extremely difficult,” she said.
With many unknowns and a lack of guidance on this change, JCPL had to pause plans to renovate and expand the White River Branch, which serves the Center Grove area and western Greenwood.
“We have saved funds for this project for many years, but we must delay the improvements until we learn more,” she said.rtainty looms, libraries are finding strength in the communities they serve, directors said.
With this law making state and national headlines, local residents have sprung into action in an effort to preserve their community library.
“Several people have asked how they can help ensure we are fully funded in the future,” Lintner said. “We will rely on these patrons and residents to help share the importance of JCPL in our county and how libraries are one of the few places where everyone is welcome and can engage in meaningful lifelong learning activities. Libraries are an investment in the community.”
Besides library funding taking a significant loss, the most disappointing aspect of SB1 is that it offers residents insignificant tax relief, Lintner said.
“Calculations that allowed government units to have stable budgeting are now eliminated, with the burden on local government to make up losses,” she said. “Government units need stability in planning funding from year-to-year to create a logical budget to fund programs, resources and services.”
Greenwood Public Library has been preparing for a crisis like this for several years, said Emily Ellis, executive director. Library leaders have been underspending their revenue and creating a healthy cash and rainy day balance for years, she said.
Their frugality will be tested as revenue decreases.
“We will be relying on the entirety of our revenue, and will no longer be able to add to our savings each year,” Ellis said. “And we will continue to review every contract and project.”
With an anticipated loss between $78,000 and $83,000 for the next three years, it will contribute to a gap between budget and revenue of at least $550,000. To top it off, GPL is currently on a hiring freeze, which includes replacing positions that might naturally become available.
The library’s previous director, Cheryl Dobbs, hosted two Library Coffee Talk programs to inform residents about SB1 and its impact, an event they never anticipated hosting.
Throughout those two events, over 60 people turned out to share their concern and offer support. That also yielded financial support.
“We saw an increase in donations, developed a new volunteer initiative to accommodate new community members interested in serving the library and had many share our advocacy posts and newsletters,” she said.
The donations will help but they won’t bridge the gap.
Behind the scenes, library leaders are bracing for tough decisions. If Ellis had the ear of a lawmaker, she would make her message clear, she said.
“I would tell them about our patrons and the impact the library has made in their lives, from story times that build crucial development skills to teens who are struggling to read or adults needing assistance applying for benefits,” she said. “The funding cuts directly affect your constituents, and without the assurance of stable funding, free resources available to every citizen in their districts could be in jeopardy.”
While lawmakers hold power to shape policy, Ellis and Lintner are both on a mission to reach people who don’t walk through their doors — the ones who may not see what is at risk.
Some of the most meaningful conversations Linter has had have been with residents who don’t regularly use the library, but are open to learning what JCPL offers.
“Until you see what we offer, either through visiting our website, visiting a branch or talking with staff, you may not know the incredible economic value of your tax dollars that fund the library,” she said. “After learning about JCPL’s wonderful resources, I hope residents will share Laura Bush’s opinion that ‘…the most valuable thing in my wallet is my library card.’”
Last year, JCPL patrons checked out more than 1.3 million items. The branches had 409,399 visits by residents and programs and outreach saw 77,958 attendees. JCPL is the 10th largest library district in Indiana by population, but ranks 3rd in the state for attendance at programs.
When explaining the value of libraries, Ellis said she often thinks of a quote from Eric Klineberg’s book, “Palaces for the People.” It says, “all people deserve free, open access to our shared culture and heritage, which they can use to any end they see fit.”
“While literacy is our highest priority, we are not just a building of books,” Ellis said. “We are professionals who connect individuals with valuable resources. We provide access to technology and tools that residents may not be able to purchase on their own. We are a safe place for gatherings, meetings and appointments. And we are a connection point for neighbors and friends.”
Edinburgh Wright-Hageman Public Library Director Denisea Nelson said she and others at the library are still examining the possible impacts to their budget, library and the community.
As uncertainty looms, libraries are finding strength in the communities they serve, directors said.