Local Financial Effort (LFE) is the amount of local funds expended by the library. LFE is reviewed when determining eligibility for state aid.

Things to remember when completing this section:

• There are three (3) data elements that require data to be entered into the data input cell. These cells must be completed by the library to accurately calculate the library’s local financial effort.

• One-time, non-recurring expenditures are included when calculating the library’s local financial effort.

Adjusted Total Operating Expenditures

This subsection considers adjustments made for bookmobile reserved funds and any mortgage principal payments.  This data element is automatically generated for all libraries, whether they have mortgage payments for the purpose of answering the next data element.

There is one data element that must be completed by all libraries in this subsection.  Please enter a figure into the Mortgage Allocation data input cell.

Status	Number	Data Element	Description/Definition
	Q-1	Total Operating Expenditure
	Q-2	Mortgage Principal
	Q-3	10% of Total Operating Expenditure
	Q-4	Mortgage Adjustment
	Q-5	Mortgage Allocation: If line Q-2 is greater than line Q-3, enter the amount from line Q-4.  If line Q-2 is less than line Q-3, enter zero (0).	Total operating expenditures are adjusted because mortgage principle payments may not exceed 10% of the total operating expenditure.
	Q-6	Bookmobile Funds
	Q-7	LFE Operating Expenditures

Credits Toward Local Financial Effort

This subsection identifies credits towards the library’s LFE. Credits include up to 10% of capital expenditures and gifts purchased specifically for the library.

There is one data element that must be completed by all libraries in this subsection.  Please enter a figure into the Capital Expenditure Credit data input cell.

Status	Number	Data Element	Description/Definition
	Q-8	Total Capital Expenditure
	Q-9	Capital Expenditure Credit: Enter line Q-3 or line Q-8, whichever is less.	Credit for capital expenditure is limited to 10% of the total operating expenditures.
	Q-10	Gifts Purchased
	Q-11	Total LFE Credits

Deductions from Local Financial Effort

This subsection identifies deductions from the library’s LFE. Deductions include State Aid, LSTA, Keystone Funds, and Rent to Supporting Municipalities.

All data elements in this subsection are automatically generated.

Status	Number	Data Element	Description/Definition
	Q-12	State Aid Expended
	Q-13	LSTA Expended
	Q-14	Keystone Funds Expended
	Q-15	Rent to Supporting Municipalities & Costs of Raising Funds
	Q-16	Total LFE Deductions

Subtotal Local Financial Effort

This subsection calculates the adjusted local financial effort of the library prior to any adjustments made for estimated shared costs.

All data elements in this subsection are automatically generated.

Status	Number	Data Element	Description/Definition
	Q-17	Subtotal LFE

Estimated Shared Costs Credit

This subsection determines the amount of estimated shared costs allowed to be added to the library’s local financial effort.

There is one data element that must be completed by all libraries in this subsection.  Please enter a figure into the Credit for Estimated Shared Costs data input cell.

Status	Number	Data Element	Description/Definition
	Q-18	Estimated Shared Costs
	Q-19	Maximum Allowable Shared Cost Credit
	Q-20	Credit for Estimated Shared Costs: Enter line Q-18 or line Q-19, whichever is less.	Credit for Estimated Shared Costs

Total Local Financial Effort

This is the total local financial effort that will be used when determining the library’s eligibility to apply for state aid.

Status	Number	Data Element	Description/Definition
	Q-21	Total Local Financial Effort