Per Capita State AidPer Capita State Aid

Presented by :Presented by :Scherelene SchatzScherelene Schatz

sschatz@njstatelib.orgsschatz@njstatelib.org609-278-2640609-278-2640

What is State Aid for public What is State Aid for public libraries?libraries?

Since the 1960s, the NJ Legislature has Since the 1960s, the NJ Legislature has appropriated funds to support a Per Capita appropriated funds to support a Per Capita Library Aid programLibrary Aid program

Administered by NJ State LibraryAdministered by NJ State Library Municipalities and counties annually Municipalities and counties annually

submit an applicationsubmit an application Libraries annually submit a report in the Libraries annually submit a report in the

form of an online survey, a Certification form of an online survey, a Certification and other supporting documentation as and other supporting documentation as neededneeded

Eligibility for State Aid – Eligibility for State Aid – Compliance with Laws and Compliance with Laws and

RegulationsRegulations The municipality must be in compliance with The municipality must be in compliance with

all laws governing the library such as all laws governing the library such as minimum funding for county and municipal minimum funding for county and municipal librarieslibraries

The library must be in compliance with all The library must be in compliance with all laws governing the type of library laws governing the type of library (association, county or municipal)(association, county or municipal)

Municipal and county libraries must comply Municipal and county libraries must comply with laws that cover government entities such with laws that cover government entities such as purchasing, auditing, investing and hiring as purchasing, auditing, investing and hiring practices.practices.

Eligibility for State Aid – Meeting Eligibility for State Aid – Meeting Minimum Service RequirementsMinimum Service Requirements

Minimum requirements based on Minimum requirements based on decennial Census population served decennial Census population served must be met for numbers of must be met for numbers of professional and other staff, professional and other staff, operating hours, collections, and operating hours, collections, and various public service areas (N.J.A.C. various public service areas (N.J.A.C. 15:21-2.3) 15:21-2.3)

If not met, State Aid is reducedIf not met, State Aid is reduced Exceptions may be made through Exceptions may be made through

petition to the State Librarian.petition to the State Librarian.

Calculation of State AidCalculation of State Aid

The amount of tax support in relation to The amount of tax support in relation to the prior year’s equalized valuation the prior year’s equalized valuation establishes the aid category; the greater establishes the aid category; the greater the funding relative to prior year’s the funding relative to prior year’s equalized valuation, the greater the aid equalized valuation, the greater the aid categorycategory

5 aid categories – from $ .50 to $1.50 per 5 aid categories – from $ .50 to $1.50 per capitacapita

The Decennial Census is used in the The Decennial Census is used in the formula to calculate paymentsformula to calculate payments

Calculation of State Aid (continued)Calculation of State Aid (continued)

Each minimum is related to the population served. For example, libraries serving the 7,500 people must have at a minimum:

A director who holds a NJ Professional Librarian Certificate and works at least 35 hours per week

8,000 volumes 1/10 volume purchased per capita per year 50 paid periodical subscriptions 30 open hours per week (offered over 5 days,

three evenings, and including some weekend hours)

Calculation of State Aid (continued)Calculation of State Aid (continued)

The staff requirement increases by one for each additional 4,000 people; libraries serving over 7,500 must have a professional director working at least 35 hours per week and have an additional 35 professional hours for each added 10,000 up to 50,000 population, and then an additional 35 professional hours for each 20,000 people; hours and periodicals increase to a maximum of 60 and 150 respectively.

OverviewOverview

The vast majority of public libraries file the annual New Jersey Public Library survey and meet all requirements of Per Capita State Aid. • Some libraries fail to meet criteria and this

results in a percentage loss of aid of either 50% or 100% depending upon which item is failed.

• Failure to file a report causes a 100% loss of aid as is not employing a full-time (35 hours per week) professional librarian when serving a population of 7,500 or more.

State AppropriationState Appropriation

The last State fiscal year in which sufficient funds were appropriated for the program was in FY 1990.

In FY 2009, the amount was reduced to $7,973,000 and reduced again in FY2010 to $7,176,000.

In FY 2011, the amount was reduced to $3,639,240.

Use of PCSA FundsUse of PCSA Funds Library boards have great flexibility in

determining the use of state aid funds. Funds have been used for projects as diverse as the purchase of property for a new building to the automating of a library's card catalog. Over the past few years, state aid funds have been spent in roughly the following pattern:

  40% on staff salaries, wages, or benefits 43% on library materials 13% on library operating expenses 4% on library capital projects

PCSA TimelinePCSA TimelineJanuaryJanuary Libraries receive electronic Libraries receive electronic

notification from NJSL regarding notification from NJSL regarding the availability of the Bibliostat the availability of the Bibliostat Collect survey (PLS+PCSA)Collect survey (PLS+PCSA)

Application is mailed to Application is mailed to municipality/county; municipality/county; municipality/county mails the municipality/county mails the original completed form to NJSL original completed form to NJSL and a copy to the library; library and a copy to the library; library staff enter the data in the survey staff enter the data in the survey

MarchMarchLegal cutoff date for applicationLegal cutoff date for application

AprilAprilCutoff date for automatic Cutoff date for automatic extensionextension

August-September August-September Letters regarding expected PCSA Letters regarding expected PCSA award and any potential failures award and any potential failures are mailed to library. Libraries are mailed to library. Libraries may submit “Request for may submit “Request for Exception” after notification of Exception” after notification of potential failure. Libraries receive potential failure. Libraries receive notification regarding “Request notification regarding “Request for Exception” from NJSLfor Exception” from NJSL

OctoberOctober Electronic notification that PCSA Electronic notification that PCSA check has been mailed (to check has been mailed (to municipality or library) – be sure municipality or library) – be sure to follow up with NJSL if not to follow up with NJSL if not received in a timely mannerreceived in a timely mannerElectronic notification regarding Electronic notification regarding posting on NJSL Webpage of the posting on NJSL Webpage of the equalized valuation and operating equalized valuation and operating budget required to meet the 1/3 budget required to meet the 1/3 mill minimum required by law mill minimum required by law (municipal libraries only) (municipal libraries only)

PCSA FLOW CHARTPCSA FLOW CHARTMinimum Standards

Complies fully with all laws7 hours per year of trustee trainingStaff hours including one full time employee as variously definedNJSPL certified staff for populations over 7,500MaterialsHours, days, evenings of serviceInterlibrary loanChildren’s programmingLibrary webpage linked to NJSL databasesStaff training

Governance

Library formed according to the laws governing municipal, county or association libraries

Fails standard/s

Eligible to receivePCSA in full or in proportion to requirements met.

Qualifies

Not eligible for per capita state aid grant.

Applies for waiver

Granted waiver

Does not qualify to apply

Denied waiver

Meets Standards

START HERE

Library submits annual survey and Certification sheet and municipality submits application to NJSL

http://www.njstatelib.org/LDB/Library_Law/lwindx03.php#P

Accuracy CertificationAccuracy Certification

PCSA Municipal ApplicationPCSA Municipal Application

Annual SurveyAnnual Survey

3 purposes – ascertain compliance with 3 purposes – ascertain compliance with PCSA requirements, fulfill the PCSA requirements, fulfill the requirement of providing statistics to requirement of providing statistics to IMLS and provide statistics for planning, IMLS and provide statistics for planning, reporting, research, evaluation and reporting, research, evaluation and legislative and management decisionslegislative and management decisions

Explain what survey collectsExplain what survey collects Why should be as accurate as possibleWhy should be as accurate as possible What IMLS do with itWhat IMLS do with it

Annual Survey URLAnnual Survey URL

Collect.btol.comCollect.btol.com Enter your UserID and PasswordEnter your UserID and Password If you need your UserID and If you need your UserID and

Password please contact me.Password please contact me.

PCSA InstructionsPCSA Instructions

PCSA InstructionsPCSA Instructions (continued)(continued) Line 2. Line 2. (Applicable to municipalities only): Enter the (Applicable to municipalities only): Enter the

expenditures made directly to the municipal, joint or expenditures made directly to the municipal, joint or association library board, or placed into a reserve account association library board, or placed into a reserve account for the exclusive use of the library board during the Survey for the exclusive use of the library board during the Survey Year. Year.

Line 3. Line 3. (Applicable to municipalities paying county library (Applicable to municipalities paying county library dedicated tax and counties only): Municipalities should dedicated tax and counties only): Municipalities should enter the county library dedicated tax as it appears in the enter the county library dedicated tax as it appears in the county Abstract of Ratables for the Survey Year unless that county Abstract of Ratables for the Survey Year unless that amount was changed by added, omitted, or rollback taxes amount was changed by added, omitted, or rollback taxes during the Survey Year. during the Survey Year.

Counties should include the expenditures made directly to Counties should include the expenditures made directly to the library commission, or placed into a reserve account for the library commission, or placed into a reserve account for the exclusive use of the library commission. Report all the exclusive use of the library commission. Report all added and omitted taxes received in the Survey Year for added and omitted taxes received in the Survey Year for expenditure to the library commission on this line, not on expenditure to the library commission on this line, not on line 4. line 4.

PCSA InstructionsPCSA Instructions (continued)(continued) Line 4. (Applicable to both municipalities and counties): Enter

here the amount spent in the Survey Year for library operations in addition to the sums appropriated in the municipal budget or the county library dedicated tax: for example, funds spent for the payment of library fringe benefits, insurance, building maintenance, utilities, etc. These costs paid on behalf of the library by the municipality or county must be supported by expenditure documents (invoices, contracts, payroll records, etc.). Attach an itemized statement detailing the additional expenditures. The library director, a member of the library board of trustees or county library commission, and the chief municipal financial officer or county finance officer, must sign this statement.

Line 7. Enter here any state aid balances held and unspent as of December 31 of the Survey Year that have been held for more than two years. Please note that this amount cannot be greater than the amount reported on Line 6. “N/A” may be reported if the municipality/county does not hold PCSA funding for the library.

PCSA InstructionsPCSA Instructions ((continuedcontinued))

Line 9. Line 9. (Optional) Enter here capital (Optional) Enter here capital expenditures for library purposes. Capital expenditures for library purposes. Capital expenditures are not reported on any expenditures are not reported on any other line. This information will be used by other line. This information will be used by the State Library for informational the State Library for informational purposes only.purposes only.

http://www.njstatelib.org/LDB/State_Aid/http://www.njstatelib.org/LDB/State_Aid/Application_For_State_Library_Aid_2009_Instructions.pdfApplication_For_State_Library_Aid_2009_Instructions.pdf

Calculating PCSACalculating PCSA

Step 1. Step 1. Rate determinationRate determination = $ .50- = $ .50-$1.50 as determined by formula of $1.50 as determined by formula of expenditures/equalized valuation. For expenditures/equalized valuation. For Library X, rate in payment for 2009 = Library X, rate in payment for 2009 = Expenditure of funds from Expenditure of funds from municipality to library divided by municipality to library divided by equalized valuation used for the year equalized valuation used for the year = $340,000 / $700,000,000 = $340,000 / $700,000,000 = .00048571 (which categorizes = .00048571 (which categorizes under $1.25 rate).under $1.25 rate).

Calculating PCSA Calculating PCSA ((continued)continued)

RatesRates: Each municipality or county that supports, in whole or in part, library : Each municipality or county that supports, in whole or in part, library service from municipal or county tax sources pursuant to chapter 33 or 54 service from municipal or county tax sources pursuant to chapter 33 or 54 of Title 40 of the Revised Statutes1 shall qualify for one of the following: of Title 40 of the Revised Statutes1 shall qualify for one of the following:

• $0.50$0.50 per capita if its annual expenditure for library services is per capita if its annual expenditure for library services is less than 1/5 mill per dollar upon the equalized valuation.less than 1/5 mill per dollar upon the equalized valuation.

• $0.75$0.75 per capita if its annual expenditure for library services is per capita if its annual expenditure for library services is equal to or more than 1/5 mill, but less than 1/4 mill per dollar equal to or more than 1/5 mill, but less than 1/4 mill per dollar upon equalized valuation.upon equalized valuation.

• $1.00$1.00 per capita if its annual expenditure for library services is per capita if its annual expenditure for library services is equal to or more than 1/4 mill, but less than 1/3 mill per dollar equal to or more than 1/4 mill, but less than 1/3 mill per dollar upon equalized valuation.upon equalized valuation.

• $1.25$1.25 per capita if its annual expenditure for library services is per capita if its annual expenditure for library services is equal to or more than 1/3 mill, but less than 1/2 mill per dollar equal to or more than 1/3 mill, but less than 1/2 mill per dollar upon equalized valuation.upon equalized valuation.

• $1.50$1.50 per capita if its annual expenditure for library services is per capita if its annual expenditure for library services is equal to or more than 1/2 mill per dollar upon equalized valuation.equal to or more than 1/2 mill per dollar upon equalized valuation.

Calculating PCSA Calculating PCSA ((continued)continued)

Step 2. Step 2. Unadjusted PCSAUnadjusted PCSA = Rate = Rate determination X population determination X population (decennial census). Unadjusted PCSA (decennial census). Unadjusted PCSA = 1.25 x 10,000 = $12,500.= 1.25 x 10,000 = $12,500.

Step 3. Step 3. Adjusted PCSAAdjusted PCSA = Unadjusted = Unadjusted PCSA minus prorated reductions PCSA minus prorated reductions and/or deductions. and/or deductions.

((In order to restore the rate to $1.50, the In order to restore the rate to $1.50, the Municipal Expenditure will have to be Municipal Expenditure will have to be increased so that the ratio is back to increased so that the ratio is back to $1.50.)$1.50.)

Calculating PCSA Calculating PCSA (continued)(continued)

Reduction/Prorating of aid for failure Reduction/Prorating of aid for failure to meet minimum requirementsto meet minimum requirements

      Failure to meet the requirements specified in N.J.A.C. 15:21-2.4Failure to meet the requirements specified in N.J.A.C. 15:21-2.4 through 2.6 will result in the loss of per capita State Aid (PCSA) by athrough 2.6 will result in the loss of per capita State Aid (PCSA) by a percentage in proportion to the number of requirements not yet percentage in proportion to the number of requirements not yet achieved, each requirement to have the following weights (not to achieved, each requirement to have the following weights (not to

exceed 100 percent):exceed 100 percent):      1. N.J.A.C. 15:21-2.4:1. N.J.A.C. 15:21-2.4:      i. i. Employees: 50 percentEmployees: 50 percent..      2. N.J.A.C. 15:21-2.5:2. N.J.A.C. 15:21-2.5:      i. i. Basic book collection: 50 percentBasic book collection: 50 percent..      ii. ii. Annual purchases: 50 percentAnnual purchases: 50 percent..      iii. iii. Periodicals: 50 percentPeriodicals: 50 percent..      iv. iv. Public Internet access: 50 percentPublic Internet access: 50 percent..      3. N.J.A.C. 15:21-2.6:3. N.J.A.C. 15:21-2.6:      i. i. Hours of service: 50 percent.Hours of service: 50 percent.      ii. ii. Extended Service: 50 percentExtended Service: 50 percent..      iii. iii. Knowledgeable Service: 50 percent.Knowledgeable Service: 50 percent.

Follow-up ResourcesFollow-up Resources

NJ Statutes and Regulations pertaining to NJ Statutes and Regulations pertaining to libraries at libraries at http://http://www.njstatelib.org/LDB/Library_Lawwww.njstatelib.org/LDB/Library_Law//

NJ State Library consultants NJ State Library consultants http://http://www.njstatelib.org/LDB/factsheet.phpwww.njstatelib.org/LDB/factsheet.php

NJ Library Association webpage NJ Library Association webpage www.njla.orgwww.njla.org

Pat Tumulty: ptumulty@njla.orgPat Tumulty: ptumulty@njla.org