Draft Communites in Need Program
Steps to enter the Communities in Need Program
Communities in Need Program
The purpose of the program is to provide libraries with the opportunity to work toward meeting the per capita floor and minimum requirements through capacity building and/or direct cash awards.
The MBLC will administer the program using a percentage of the annual legislative appropriation for the State Aid program. At a minimum, this program will require funding a new position in the agency, a budget for program support and a budget to pay for consulting services. It is anticipated that the agency costs to support the Communities in Need program component of the State Aid program will be at least $175,000 annually. This portion of the State Aid program must be in place and ready to go before the full State Aid program is implemented.
Communities in Need, Section A
This program aids libraries in capacity building within their municipality and involves no cash award to participating libraries.
Upon entering Section A, each library will participate in an evaluation to examine the funding issues facing them. A capacity building plan will be created to assist the library to meet expenditure and minimum standards goals (if needed).
The MBLC will contract with and provide orientation and training for consultants who will work directly with libraries to provide the following capacity building training:
Long Range Planning
The goal of the training is to help libraries to plan, educate and advocate within their communities resulting in increased support and funding for them.
Libraries may remain in Section A until their municipality meets the minimum per capita funding expenditure.
Communities in Need, Section B
This program aids libraries in meeting the minimum per capita requirement through a combination of capacity building training and a direct funding to participating libraries.
The maximum number of years that a library is eligible to participate in Section B is four (4). Funds will be allocated each year using a declining scale with the expectation that the municipality's local funding to the library increase as state funds decrease.
The key to encouraging communities to better fund their libraries in Section B is the understanding that 1) there is a limit to the length of time that the State Aid Communities in Need program funding will be available to them and 2) there is an expectation that the municipality will increase its local funding as the state assisted funding is decreased each year.
Libraries that have participated in the program will be unable to re-enter the program for a three (3) year period.
Upon entering Section B, each library will participate in an evaluation to examine the funding issues facing them. A Plan will be created to assist the library to meet expenditure and minimum standards goals (if needed) with the aid of a direct cash award. State Aid Communities in Need funds allocated to Libraries will be monitored in order to ensure that these funds are being used by the Library to meet needs expressed in the Plan.
The cash award will be distributed thusly:
Year 2: Library receives 75% of their State Aid award estimate for that fiscal year according to their Cherry Sheet and continues training in capacity building.
Year 3: Library receives 50% of their State Aid award estimate for that fiscal year according to their Cherry Sheet and continues training in capacity building.
Year 4: Library receives 25% of their State Aid award estimate for that fiscal year according to their Cherry Sheet and continues training in capacity building.
Appendix A: Definitions of Indicators of Municipal Fiscal Hardship
FY2005 State Aid Percent of Revenues Rank (most dependent on state aid = 351)
State Aid as a percent of total municipal revenues, FY2005 values. This percentage indicates the degree to which local governments are dependent on state aid. Decreases in state aid have a greater affect on the more dependent municipalities. The State Aid per cent Rank is higher for those local governments that are more dependent on state aid.
1999 Per Capita Personal Income Rank (least wealthy = 351)
Per Capita Personal Income, 1999 values. Personal income affects a municipality's ability to actually collect projected revenues. The PCPI Rank is higher for those municipalities with lower PCPI projections.
2004 EQV (Equalized Valuation) Rank (least taxable property value = 351)
Equalized Valuation of taxable property, 2004 values. These values are computed biennially by the Department of Revenue to measure local bases of taxable real property. The EQV Rank is higher for municipalities with limited revenue raising potential.
FY2004 Debt Service Percent of Total Expenditures Rank (most debt service = 351)
Debt Service costs as a percent rank of total municipal expenditures, FY2004 values. This rank represents the costs of short-term borrowing to meet interim cash requirements as a percentage of total municipal expenditures. The Debt Service Percent Rank is higher for municipalities with a high percentage of debt service costs in relation to the total municipal budget.
Total of Ranks
The total of the above four rankings. The municipality with the highest total is the 'most disadvantaged' according to these indicators of municipal fiscal hardship.
Based on the total rank, municipalities are ordered from 'most disadvantaged' (1) to 'least disadvantaged.'