Northwest Indiana’s libraries have been grappling with a perfect storm of state and federal funding challenges that could crimp services.
The Trump administration is looking to eliminate the Institute of Museum and Library Services, a federal agency that helps fund library services across Indiana and the country. The state legislature cut funding to the Indiana State Library which provides services to the 236 public library districts across the state, and it made changes to the property tax system that are expected to shrink library revenue.
“The primary challenge to library funding is the combination of state and federal-level issues that are converging to create a perfect storm, significantly impacting budget planning beginning in 2026,” Crown Point Community Library Director and Indiana Library Federation President Julie Wendorf said. “The current uncertainty surrounding federal funding from the Institute of Museum and Library Services, despite some recent court rulings, would have a significant impact on the Indiana State Library.”
The funding helps support interlibrary loans and the INSPIRE collection of databases serving K-12 students, public libraries and academic libraries.
The Indiana State Library is poised to lose $5 million over the next two years, a 48% decrease. The state also slashed funding to the Dolly Parton Imagination Library, the INSPIRE databases and the Internet Connectivity Grant, which reimburses the cost of local libraries providing public internet access. It covers a substantial portion of internet expenses for many libraries and, for instance, reimbursed around 50%, or $11,000, of the Crown Point Community Library’s internet expenses last year.
“Much of the impact on local libraries from the Indiana State Library budget cuts comes in the form of lost services or the uncertainty of how to cover the cost of services the State Library can no longer provide or may need to shift to local libraries,” Wendorf said. “As it stands, unless funding from the Institute of Museum and Library Services is restored and maintained, the Indiana State Library is expected to lose an additional $3 million in federal funding on top of the already significant reductions in state funding.”
The full effects of the cutbacks aren't immediately apparent and could be felt for some time, Porter County Public Library System Director Jesse Butz said.
“The full impact of state and federal funding cuts will not be known for some time,” he said. “These cuts may impact various forms of library services and have a cascading effect that the state library needs to address before the impacts on local libraries are fully understood.”
Tightening the belt
The cutbacks will affect each library system differently, as they all undertake their own budgeting process, Wendorf said. Some may cut hours, staff or services.
“Library leaders will be faced with the difficult responsibility of maintaining services while also managing the financial strain brought on by reduced property tax revenue and diminished support from the Indiana State Library, due to cuts at both the state and federal levels,” she said.
The impact of the cutbacks may be felt most acutely at rural libraries with smaller budgets, but will hit library systems both large and small in every corner of the Hoosier State, Wendorf said.
“These libraries are often the only source of critical services — such as internet access, educational resources, and community programming — in their communities, making the potential impact even more significant,” she said. “Larger libraries in Indiana are also facing significant impacts, with some of the state's largest systems pausing or canceling planned new construction and renovation projects due to the financial uncertainty.”
The Crown Point Community Library is starting to plan the 2026 budget. It will have to look at reducing staffing, services, hours and programming for all age groups, Wendorf said. It may not be able to offer staff cost-of-living wage increases.
“Each library will need to make these decisions during its upcoming budget planning process for the 2026 annual budget,” she said. “Unfortunately, these funding challenges come at a time when the cost of operating libraries is also rising, including higher utility bills, increased health insurance premiums for staff, and price hikes from many vendors.”
Local libraries will have to absorb more costs the Indiana State Library previously footed at a time when property tax revenues are shrinking and costs are rising, Wendorf said.
Interlibrary loan services, for instance, are likely to be cut back, resulting in longer delivery times.
“The Indiana State Library currently subsidizes one delivery day for all participating libraries, which for many of the smallest libraries is their only weekly delivery,” Wendorf said. “If the cost of delivery services increases and those expenses are shifted to local libraries, some may choose to further reduce the frequency of deliveries to manage costs.”
The Porter County Library System builds a zero-based budget that starts from scratch every year and doesn’t simply adjust last year’s budget.
“With our system, we are constantly looking for ways to continue to be excellent stewards of public tax dollars,” Butz said. “Our philosophy utilizes multiple data points that we track over time as we seek to investigate efficiencies in our services.”
The library system will adjust accordingly once it knows how it will be affected by the state and federal cuts, he said.
“In the end, we have a fiduciary responsibility to the residents of Porter County and will do everything in our power to continue being one of the best values in our community,” Butz said.
Providing valuable services
People visited Porter County libraries 425,000 times last year, checking out 938,000 items and attending more than 1,000 programs. They spent 26,000 hours on its computers and used its meeting rooms more than 16,000 times.
“Every day, we work one-on-one with residents of all ages, from seniors receiving technology assistance to children learning to read. From someone seeking out new employment to a family needing a document notarized,” Butz said. “From proctoring an exam to just helping someone discern legitimate sources to read and stay informed. The library is a critical cornerstone of the community that serves residents throughout Porter County responsibly and sustainably.”
The Porter County Library System also works closely with schools and serves as a haven for students.
“We often fill that gap between school sessions, and play a critical role in stopping the summer slide and ensuring students continue to read at grade level,” Butz said. “But it goes well beyond that simple function. We help create lifelong readers, children who are capable of learning, growing and exploring all the world has to offer through literacy. We are often also a lifeline to those in our community in the most need.”
Libraries face financial strain and compounding losses with limited options for generating additional revenue. But they provide a vital public service, Wendorf said.
“Public libraries remain one of the few public spaces where people can access services and resources without any cost. By efficiently using a modest amount of taxpayer funding, libraries deliver a substantial return on investment,” she said. “They serve as a vital public good, offering barrier-free access to early childhood literacy programs, providing spaces for community members to work or relax, and hosting activities for seniors that help address the growing issue of senior loneliness."
They're also hubs for the community, Wendorf said.
"Public libraries play a crucial role in placemaking, supporting economic development and fostering early literacy,” she said.