The statutory funding formula is the sum of 7 separate components. Each has a distinct role in supporting direct public library service and in supporting the district library centers and statewide library resource centers. The over-arching intent of state funds is to stimulate local support.
Not all libraries are eligible for all levels of aid. Libraries may qualify for aid as a stand-alone entity or as part of a library federation.
Quality Libraries Aid. Until fiscal year 1998-1999, local libraries desiring financial assistance from the state were required to meet basic standards or submit a plan for the use of funding. By doing so, they became eligible to receive a per capita portion of 25 percent of the annual appropriation for total library aid, or a minimum of 25 cents per capita. Any appropriation remaining after the minimum allocation was then allocated per capita. This was referred to as “basic aid.” “Basic aid” was replaced with “quality libraries aid,” beginning in FY 1999-2000. Any local library that made a minimum financial effort of $5 per capita for each person residing in municipalities based on which it qualifies for aid and which met quality libraries aid criteria could receive State aid. The amount of quality libraries aid is distributed on a per capita basis by the following formula: the annual allocation for quality libraries aid is divided by the total population of all libraries that qualify for quality libraries aid and then the per capita amount is multiplied by the population residing within the municipalities served by the qualifying library.
Incentive for Excellence Aid. Incentive for excellence aid is available to any library or library system that is qualified for quality libraries aid, makes more than the minimum amount of financial support and attains a higher level of standards. A two-tier funding allocation method is used. The annual allocation for incentive for excellence aid is allocated proportionately among eligible libraries. Libraries that exceed 100 percent minimum financial support, but do not exceed 150 percent can receive Tier 1 funding of up to 80 cents for each $1 per capita of surplus financial support. Libraries that exceed 150 percent minimum financial support, but do not exceed 300 percent can receive Tier 2 funding of up to 10 cents for each $1 per capita of surplus financial support.
Equal Distribution Grants. Five percent of the total allocation for state aid is set aside for equal distribution grants, as well as any funds remaining from the county library allocation after all eligible county libraries have received the maximum of county coordination aid, all of which is to be distributed on a per library basis.
In addition to state aid that is available to all local libraries, there are four categories of aid that are available on the basis of the status of the library:
County Coordination Aid. County coordination aid is a simple matching aid program, with a graduated percentage match tied to the county class, ranging from a five percent match for second class counties to a 100 percent match for 6th, 7th and 8th class counties. Any excess annual appropriation that remains after payment of these matches is to be added to the funds allocated for equal distribution grants.
District Library Center Aid. The designated district library centers in Pennsylvania divide the annual allocation for this type of aid equally.
Statewide Library Resource Center Aid. The four statewide library resource centers divide the allocation for this type of aid equally.
Equalization Aid. This category of aid is available to economically distressed municipalities only. Any year the total annual appropriation for the system of State aid equals or exceeds $17.5 million, 2.75 percent of that aid is to be allocated as equalization aid. Twenty percent of that allocation is to be divided equally among all qualifying libraries, and then the balance shared per capita. No library may receive more than one third of the total equalization aid appropriation.
The formula set forth in 24 Pa. C.S. Chapter 93 is intended to have a twofold effect: quality libraries aid and equal distribution grants provide subsidies for all libraries that meet a minimum set of standards, while equalization aid provides additional support to libraries in economically distressed municipalities. Incentive for excellence aid, on the other hand, provides an incentive for competition among libraries to provide a wider range of services. It was intended to promote local government support of library funding by requiring a minimum amount of local effort in order to qualify for state aid.
Although some mild adjustments were made in fiscal years 1998 through 2003, the wholesale abandonment of the statutory funding formula began in fiscal year 2003-2004. Since state fiscal year 2003/04 the allocation and distribution of State Aid has been based on legislative language passed with each year's budget.
The legislative language that determines the allocation of State Aid is different each year. The spreadsheet below outlines and provides a link to each budget year's specific language. Please note that for some years, the language provided instruction for specific categories of aid, whereas in most years any increase or decrease for eligible libraries was applied to "the sum amount of funding that the library received" the previous year. Therefore increases or decreases were not made to the separate categories of aid, rather to the whole allocation.
Title 24 P.S. Education PUBLIC SCHOOL CODE OF 1949 ARTICLE XXIII FUNDING FOR PUBLIC LIBRARIES Section 2327.
Notwithstanding any other provision of law to the contrary, from money appropriated for a subsidy to public libraries, funds shall be distributed in fiscal year 2023-2024 as follows:
(1) The State Librarian shall distribute $6,717 to each district library center that received less than the amount specified under 24 Pa.C.S. § 9338(b)(2) (relating to district library center aid) in fiscal year 2022-2023 from funds allocated under section 2326(1).
(2) All funds remaining after the distribution under paragraph (1) shall be distributed to each library under the following formula: (i) Divide the sum of the amount of funding the library received in fiscal year 2022-2023 under section 2326(1) and paragraph (1) by the sum of the total amount of State aid provided under section 2326(1) and paragraph (1). (ii) Multiply the quotient under subparagraph (i) by $70,422,981.
(3) Following distribution of funds appropriated for State aid to libraries under paragraphs (1) and (2), any remaining funds may be distributed at the discretion of the State Librarian.
(4) If funds appropriated for State aid to libraries in fiscal year 2023-2024 are less than funds appropriated in fiscal year 2002-2003, the State Librarian may waive standards as prescribed in 24 Pa.C.S. Ch. 93 (relating to Public Library Code).
(5) Each library system receiving State aid under this subsection may distribute the local library share of that aid in a manner as determined by the board of directors of the library system.
(6) In the case of a library system that contains a library operating in a city of the second class, changes to the distribution of State aid to the library shall be made by mutual agreement between the library and the library system.
(7) In the event of a change in district library center population prior to the effective date of this section as a result of: (i) a city, borough, town, township, school district or county moving from one library center to another; or (ii) a transfer of district library center status to a county library system; funding of district library center aid shall be paid based on the population of the newly established or reconfigured district library center.
(8) In the event of a change in direct service area from one library to another, the State Librarian, upon agreement of the affected libraries, may redistribute the local library share of aid to the library currently servicing the area.