We had our monthly meeting of the California Library Association Legislative Committee via conference call last Friday, and I was dismayed to hear from our lobbyists that the idea of "borrowing" property tax revenues from local governments under Proposition 1a in order to balance the state budget is again being talked about. It seems that some in the "no more taxes" camp see this as a viable counterbalance to proposed funding cuts.
Our lobbyists also reported that amidst all the wrangling over the budget there appears to be bipartisan support for protecting the State-funded Public Library Fund (PLF), which provides a very small amount of per capita funding for local library services, and the Transaction-based Reimbursement (TBR) program (which provides for libraries who participate in universal borrowing to recover a small portion of the cost of serving people from other jurisdictions via inter-library loan and "over the counter" services).
The support for libraries is heartwarming until you realize that for PVLD the funding we receive under PLF and TBR combined is less than 1% of our operating budget. As an Independent Special District Library, on the other hand, 87% of our budget is funded by an allocation of local property tax revenue.
For those who aren't familiar with Proposition 1a, it was a voter-enacted constitutional amendment intended to prevent the State from raiding local property tax revenues. It allows the State to "borrow" up to 8% of local property tax revenues in a given year provided the Governor declares a state of emergency, the borrowing is authorized by a 2/3 vote of both the Assembly and Senate, and any previous borrowings have been repaid in full.
A loss of 8% of our property tax revenue, no matter how "temporary", would be devastating for PVLD. It would come at a time when the collapsing housing market and falling interest rates mean that our total revenues for 08/09 are projected to be essentially flat as compared to this fiscal year and we, like everyone, are feeling the effects of inflation on everything from energy costs to online databases. We are looking at a barely balanced budget for 08/09 as it is, and at this stage are projecting a substantial deficit for 09/10.
And we're not alone. Both the 13 other Independent Special District Libraries across the state, and every County library system (which are known as Dependent Special District Libraries because a large portion of their funding comes from a direct allocation of property tax revenues), relies on property tax revenues for a substantial portion of their budget.
So it's pretty ironic that legislators can pat themselves on the back by protecting PLF and TBR, the loss of which would have a minimal impact on our operations, while considering the use of Proposition 1a borrowing which would result in serious cutbacks in library services....at a time when California libraries are experiencing record use due to the economic climate.
There is precedent for libraries to be exempt from State raids of local property tax reveneus, and we'll be fighting hard to preserve our funding, but the lack of political will in Sacramento to really address our state's budget issues is discouraging.
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