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Financing Options

Philosophy: "Librarians must make sure people understand that libraries are totally integrated, multidisciplinary, multi-media learning centers of knowledge and information that benefit society -- individuals and organizations, corporations and governments. Libraries are not cost centers so much as essential investments in education and knowledge, which enhance our society." *6

Proposed Capital Funding Methods

Current Method: Since the inception of Measure B over $10.6 million of the l/8 percent sales tax revenue has been set aside to date for capital projects.
Private Fund Raising:
Gifts of buildings, land, capital are an integral part of the library’s facility program. A bank gifted the current Auberry Branch Library. In recent purchases landowners have gifted a portion of the property. Substantial donations were received for construction for Kerman and Woodward libraries. Not only does fund raising secure cash for projects, it also raises the profile of the project in the community. This was clearly demonstrated in Nashville, Tennessee where over $10 million dollars was raised for the construction and equipping of a new main library and five new branches
Capital campaigns may also be undertaken.
State Library Bond Act
Bond act funds from a 1988 State bond act partially funded the Bear Mountain Library and Activity Center.
The Library Bond Act of 2000 is the largest bond act bill in the United States and will provide $350 million. State grants are currently available on a 65% state to 35% local matching fund basis to cities, counties and library districts authorized to own and maintain a public library facility. Competition is keen and it is anticipated that one in four projects will be funded.
Successor bond act bills (SB 40 and AB 222) have been introduced
  • These bills would enact the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2004, for submission to the voters at the 2004 direct primary election. If approved by the voters, SB 40 would authorize the issuance, pursuant to the State General Bond Law, of bonds in the amount not to exceed a total of $2,000,000,000 for the purpose of financing library construction and renovation pursuant to a program administered by the State Librarian. The amount of the bond in AB 222 has not been set.
  • No single project could receive over $20,000,000.
  • A key provision of both bills is that first priority shall be given to applications deemed eligible by the State Librarian, that were submitted but not funded in the third application (January 2004) cycle of the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000. Amounts awarded by the board for these applications may not exceed 50 percent of the total amount authorized pursuant to Section 20038.
  • These awards shall be made within 60 days after the awards are made for the third cycle of the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000.

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*6: Boese, Kent C. Interview with Vartan Gregorian, President of the Carnegie Corporation of New York, "If you want my 2 cents worth, The Bottom Line: Managing Library Finances, Volume 15, Number 2 3002, p. 145.

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