Finance

Introduction

These standards cover working with budgets, following state laws, library funding, and library insurance.

Essential Standards

I. Standard A
"The board and the director follow fiscal procedures consistent with state law and local government requirements in preparing, presenting, and administering its budget."

This standard simply means libraries need to obey the laws and follow local procedures when developing and administering library budgets. If you have any questions about procedures in your community, talk to your city and/or county clerk.

II. Standard B
"Local tax revenues provide at least 50 percent of the support for the library. Grants, donations, and other revenue sources supplement but do not supplant local tax support."

Property taxes or other local tax revenues from the city or county must provide at least 50 percent of the library’s budget.  State and federal dollars cannot be included in this total.

III. Standard C
"The director works with the board to develop an annual financial plan or budget."

Developing a budget is required to run the library. A budget (pdf) can also help people understand how much it costs to run a library, as well as informing people about how money is spent at the library.

IV. Standard D
"Every three years the board and the director review the adequacy of insurance coverage for the collection and building, and update the coverage as necessary."

Hopefully the library's collection and equipment will never be destroyed If it is, adequate insurance can help you recover from a disaster. Talk with your city and/or county officials to find out if the library's collection and contents are covered by insurance. If they are not, ask them to add you to the policy. If the city and/or county cannot afford to add you to their insurance coverage or you need to acquire insurance coverage, please check with MACO. Check with a local insurance agent in your city or the next largest town.  Local insurance agents may also be able to insure the library’s collection.

Source: 10.102.1150D Public Library Standards: Finance