Libraries receive flat funding from state for FY 2012

The Maryland General Assembly approved no change to the per capita funding for libraries as part of the Budget Reconciliation and Finance Act (BRFA).  This translates into another year of flat funding for Public Libraries, Regional Libraries and the State Library Resource Center (SLRC).  Because the per capita funding is based on population and real property wealth, individual library systems may notice a slight change in their funding amount, but it will otherwise remain the same.

BRFA includes flat budget for libraries through 2016

The Budget Reconciliation and Financing Act (BRFA) includes any changes in the law requested by the Governor that would be necessary to implement proposed budget items.  These changes must be approved, rejected or amended by the General Assembly.

Since the Governor’s proposed budget for FY 2012 includes a change in the law regarding the scheduled per capita increase for libraries, this is included in the BRFA.  Pages 14 and 15 of the BRFA show the public libraries, State Library Resource Center (SLRC) and Regional libraries flat-lined through the year 2016, then receiving incremental increases until reaching $15 per capita in 2019.

Governor releases FY 12 state budget – Public libraries flat funded; Some changes to pension

On Friday, January 21^st, Governor O’Malley released the Maryland state budget proposal.  Two areas are of most interest to libraries:

Library Funding

It appears that public libraries, the State Library Resource Center (SLRC) and the Regional libraries have all been flat funded, with only the formula causing a small change.

Pensions

The Governor is proposing retaining the existing defined benefits system.  However, the proposal includes a one-time choice for current employees to a) continue to contribute 5% with a 1.5% benefit multiplier (reduced from 1.8%) or b) increase their contribution to 7% and continue to earn benefits with a 1.8% multiplier.  New employees will automatically contribute 7% and receive a 1.5% benefit multiplier.  More information about the pension system and other benefits is available on the Governor’s web site. 

Budget Announcement

To view the proposed budget, Powerpoint presentations, budget highlights, video of the announcement and more, visit the budget announcement on the Governor’s web site.  The budget proposal has now been turned over to the General Assembly.

O’Malley releases FY 11 budget for Maryland

Governor O’Malley released the details of the FY 11 budget today.  The budget closes the $2 billion deficit.  While the budget appears to be cutting an additional $330 million in local support, apparently it is not coming out of libraries.  Most of the changes in funding to libraries seem to be based on normal population increases and decreases and the wealth/population formula.  Some of the highlights regarding libraries are:

•  State teachers’ and librarians’ pensions are fully funded.
• The County Public Libraries received a slight reduction of $187,070.  The FY 11 proposed state appropriation is $33,032,330; the FY 10 appropriation was $33,219,400.
• The State Library Resource Center (SLRC) received a small gain of $25,473, however, this does not begin to restore the significant reduction received in FY 10.  The FY 11 proposed appropriation is $9,408.107; the FY 10 appropriation was $9,382,634.
• The Regional Libraries received a small gain of $23,733.  The FY 11 proposed appropriation is $6,185,646; the FY 10 appropriation was $6,161,913.

 The press release from the Governor’s office includes some additional highlights.  This page also provides links to a PowerPoint presentation, the Budget in Brief and Budget Highlights.

 The Budget Bill is SB 140 and the Budget Reconciliation and Financing Act of 2010 (BRFA) is SB 141.  These bills should be available for viewing on the Maryland General Assembly’s web site on January 21^st.