The 2024‑25 Budget

California State Library

Summary

Governor Has a Few Notable California State Library Budget Proposals. The Governor proposes to pull back $131 million one-time General Fund from a local library infrastructure grant initiative administered by the State Library while also forgoing an additional $100 million that the state had intended to provide for this purpose in future years. Beyond these adjustments, the Governor proposes reverting $34 million from a prior-year broadband access initiative. Lastly, the Governor’s budget proposes to authorize a new permanent tribal and rural library programs consultant supported with existing federal funding.

Recommend Modifying Governor’s Budget Plan for the State Library. Given the state’s projected budget deficits, we generally recommend the Legislature revert one-time funds that remain available from prior-year initiatives. The State Library, however, reports that almost all local library infrastructure grant funding has been awarded, with only $4.8 million left unencumbered. We recommend the Legislature revert the $4.8 million to achieve some associated budget solution, along with forgoing the intended additional appropriations for this program over the next few years. Given the library broadband access initiative is undersubscribed, we also recommend reverting all $34 million proposed by the Governor. Beyond this one-time funding, we have identified a total of $68 million that remains available from other prior-year initiatives. We recommend the Legislature revert these funds to achieve additional budget solution. We recommend the Legislature approve the proposed tribal and rural library programs consultant position, as it has no General Fund cost and could result in tribal libraries obtaining millions in additional federal grant funding.

Introduction

Post Analyzes the Governor’s January Budget Proposals for the State Library. The post first provides background on the State Library, then provides an update on the implementation of recent local assistance initiatives. Next, it discusses the Governor’s budget proposals and concludes by providing associated recommendations.

Background

State Library Oversees Both State Activities and Local Assistance Programs. Located in Sacramento, the State Library serves as the central library for state government. The State Library collects, preserves, and publicizes state literature and historical items. It maintains an extensive collection of documents from the state’s history. State employees, as well as visitors, may access the State Library’s collections. Those with State Library cards may borrow designated library materials at no charge. The State Library also provides specialized research services to the Legislature and the Governor. In addition, the State Library passes through state and federal funds to local libraries for specified purposes and provides related oversight and technical assistance. These local assistance programs fund literacy initiatives, Internet services, and resources sharing, among other activities.

Public Libraries Are Run and Funded Primarily by Local Governments. In California, local public libraries can be operated by counties, cities, special districts, or joint power authorities. Usually the local government operator designates a central library to coordinate activities among all the library branches within a jurisdiction. Currently, 186 library jurisdictions with 1,127 sites (including central libraries and their branches) are operating in California. Local libraries provide various services that are influenced by the characteristics of their communities. A core part of the mission of all libraries, however, is to provide patrons with access to books, media, and other informational material. Around 95 percent of local library funding comes from local governments and the remaining 5 percent comes from the state and federal governments.

State Library Relies Primarily on State and Federal Funds. Approximately 70 percent of the State Library’s ongoing budget is supported by the state General Fund. Nearly 25 percent comes from federal funds, with the remainder coming from special funds and reimbursements. For 2024-25, the Governor’s budget includes $40 million in ongoing state operations funding for the State Library and $34 million in ongoing local assistance funding. The Governor’s budget also includes $155 million one-time General Fund, nearly all of which reflects carryover funds associated with one-time local assistance initiatives funded in recent years. As discussed later in this post, most of this carryover funding already has been encumbered. (This EdBudget table provides more detail on the State Library’s budget, including spending by program and fund source.)

Implementation Updates

State Recently Provided Substantial One-Time Funding for Local Infrastructure Projects. Chapter 21 of 2021 (AB 128, Ting) appropriated $439 million one-time General Fund to support local library infrastructure projects. Chapter 249 of 2022 (AB 179, Ting) appropriated an additional $50 million one-time General Fund for the same purpose. The combined $489 million represents the largest single, state-funded initiative for California’s local libraries. Beyond these appropriations, the 2022-23 budget package included intent language to provide an additional $100 million General Fund in 2023-24 for local library infrastructure projects. Subsequently, the 2023-24 budget package delayed the additional $100 million until future years. Specifically, $33 million was delayed until 2024-25, $33 million was delayed until 2025-26, and $34 million was delayed until 2026-27.

Initiative Supports Various Types of Local Library Infrastructure Projects. In response to the state appropriations and certain state programmatic requirements, the State Library created the Building Forward Library Facilities Improvement Program. This program gives funding priority to libraries located in communities with poverty rates higher than the statewide poverty rate. The program has a local matching requirement, with grant recipients generally required to contribute half of the funding for a project. The State Library, however, may reduce the local match if a local library demonstrates it has insufficient financial resources to meet the full matching requirement. To date, grant recipients have made approximately $260 million in local matching contributions. The state funds, together with these local matching funds, support new capital projects, maintenance projects, broadband and technology upgrade projects, and device purchases.

Grants Have Been Awarded for the Program. The State Library announced the first round of infrastructure grant awards in October 2022. As Figure 1 shows, the State Library approved awards for 244 projects in the first round, with associated General Fund costs totaling $312 million. Per-project award amounts ranged from just under $14,000 to $10 million. The State Library announced the second round of grant awards in October 2023. The second round consisted of 33 award winners, with associated General Fund costs totaling $172 million. Per-project award amounts in the second round ranged from just over $13,000 to $10 million. The State Library reports that of the $489 million General Fund appropriated for this program, only $4.8 million remains unencumbered.

State Also Recently Provided Funding to Expand Broadband Access. Chapter 21 appropriated $35 million one-time General Fund to expand local library broadband access in isolated and under-served communities. To date, only one project has received funding ($250,000) from this program. The State Library attributes low program demand to the complexity of the application process, and, in the case of rural areas, the need to synchronize projects with the construction of fiber backbone via the California Middle Mile Broadband Initiative. Most of this backbone is not expected to be completed for at least a few more years.

Additional One-time Support Provided for Various Projects. In addition to the two initiatives mentioned above, the State Library received one-time General Fund for several other initiatives over the past few years. As Figure 2 shows, a total of $200 million one-time General Fund was provided for 12 other initiatives in the 2021-22 Budget Act and 2022-23 Budget Act. Of that amount, $132 million had been encumbered or spent as of January 1, 2024.

Governor’s Proposals

Governor’s Budget Proposes Reverting Some Local Assistance Funding. The Governor proposes to revert $131 million one-time General Fund from the Building Forward Library Facilities Improvement Program, along with forgoing the additional $100 million in program funding that the state had intended to spread across the next three years. The Governor also proposes to revert $34 million one-time General Fund from the initiative to expand broadband access in isolated and under-served communities. The Governor’s budget retains $750,000 for this initiative. The State Library reports that the $750,000 would be used for certain equipment purchases as well as planning grants for certain library partnerships. In a related broadband action, the Governor is proposing to provide the California Department of Education (CDE) with $5 million for a similar broadband access initiative. (The administration shows the net of these two actions—reverting $34 million from the State Library and providing CDE with $5 million—yielding $29 million in one-time budget solution.)

Governor’s Budget Proposes Creating a New Federally Funded State Library Position. The Governor’s budget proposes to create a new permanent full-time Library Programs Consultant position within the State Library. The State Library estimates the new position will cost $169,000 ($105,000 in salary costs, $59,000 in benefit costs, and $5,000 in operating expense and equipment costs). The position would be supported with existing federal Institute of Museum and Library Services (IMLS) funding. The State Library indicates that the cost of the position can be accommodated within its current five-year IMLS expenditure plan and would not draw funds away from other IMLS activities. The new position would focus on supporting tribal and rural libraries. More specifically, the new staff person would support the implementation of local assistance programs for California’s 109 federally recognized tribes, dozens of non-federally recognized but established indigenous communities, and rural libraries. Additionally, the new staff person would assist existing library staff in submitting applications for federal grants to aid Native American tribes with improving library services in their communities.

Recommendations

Revert Available Prior-Year Funds From the Infrastructure Grant Program. We recommend the Legislature approve the Governor’s basic proposal to revert any unspent one-time General Fund for the Building Forward Library Facilities Improvement Program. The State Library, however, reports that only $4.8 million, rather than $131 million, is available for reversion as of January 30, 2024. We recommend the Legislature revert at least the $4.8 million. If additional budget solution were needed, the Legislature could work with the State Library and Department of Finance to determine if any other program funding could be reverted at this point without notable project disruption. Some local library grant recipients, for example, could still be in early project planning phases. Given the state’s projected budget deficits, we also recommend the Legislature adopt the proposal to forgo an additional $100 million one-time General Fund that the state intended to provide in 2024-25 through 2026-27.

Revert Remaining Prior-Year Funds From the Broadband Access Initiative. We recommend the Legislature adopt this proposal. There has been little demand for this program over the past three years, with only $250,000 being expended from the original $35 million appropriation.

Revert Unspent One-Time Funding From Other Prior-Year Initiatives. Based on a data request to the State Library, our preliminary estimate is that $68 million one-time General Fund from other prior-year State Library initiatives has not yet been encumbered or spent as of January 1, 2024. None of this $68 million is included in the Governor’s budget. As Figure 3 shows, most of the remaining funding is associated with the Statewide Imagination Library initiative. We recommend the Legislature pull back all of the unencumbered and unspent one-time funds from these initiatives, achieving a like amount of General Fund savings. To maximize potential savings, the Legislature may want to take early action, as doing so would ensure that additional funds are not spent before the end of the fiscal year.

Recommend Approving Tribal and Rural Libraries Consultant Position. This position would serve an important function of providing dedicated support for the state’s tribal and rural libraries. It would have no state General Fund cost, with the position supported entirely with federal funds. The new position also could help local libraries in California access additional federal grants. The State Library indicates the new staff person would be responsible for assisting tribal and rural libraries with submitting federal grant applications. The State Library indicates that tribal libraries currently have low application rates for federal grants. With additional technical assistance, the State Library estimates that tribal libraries could obtain millions of additional federal grant dollars.