There are three awards that make up state aid to public libraries, Library Incentive Grant (LIG), Municipal Equalization Grant (MEG) and Non Resident Circulation Offset (NRC).
Each award has a different disbursement calculation:
- The Library Incentive Grant is a straight per capita award
- The Municipal Equalization Grant is based on the lottery formula
MEG = [( X/Y * X ) / ∑ ( X/Y * X)] * SEG
MEG = Municipal Equalization Grant for any given municipality
X = municipal population as percent of state population
Y = Municipal Equalized Valuation as percent of statewide equalization
∑ = sum of
SEG = statewide equalization grant (total funds available for distribution)
For more details please see : Municipal Equalization Grant (MEG) Disbursement Formula -Definition and formula of MEG on http://mblc.state.ma.us/grants/state_aid/faqs/index.php
- The Nonresident Offset is based on the number of eligible non-resident transactions reported by libraries on the ARIS, resulting in a per transaction amount. Because the CSE is forward looking, the per transaction amount from the prior year award is used.
Each year either the population estimate or actual census is used. Each year the population and equalized valuation (EQV) can change. Each year the number of nonresident transactions that are reported does change and consequently the per transaction amount. The MBLC is required to use the population and EQV numbers released by the DOR.
For FY2013 CSE, the 2010 census and the 2010 EQV was used. For FY2014 CSE, the 2010 census and the 2012 EQV was used. For FY2013 CSE, $0.1279 per NRC transaction and for FY2014 CSE, $0.1261 per NRC transaction was used.
In October of each year, the NRC per transaction amount is updated from the CSE amount after the ARIS nonresident data is verified. When a municipality and its library are certified, the actual award based on the three disbursement formulas is made and if any money is left in the state aid pot at the end of the round, it is redistributed to certified municipalities and their libraries. For the last several years, the agency has divided each state aid payment into two based on the periodic allotment of state aid given to the MBLC. The first is sent after the municipality and its library are first certified and the second is sent when we receive the rest of our allotment, usually in April.
Thus, not only will the CSE vary from year to year, but the actual award will vary from the CSE. That is why the term ‘cherry sheet estimate’ is used.
This post was written by dcarty on January 30, 2013