Public Library District Toolkit: Strategies to Assure your Library’s Legal and Financial Stability
Public Library District Questions and Answers
1. What is a public library district?
A public library district can be defined as any public library that derives more than 90% of its operating revenue from a public referendum and has publicly elected trustees.
2. Why does Board of Regents policy encourage libraries to become public library districts?
Data shows that when voters are allowed direct decision making over how much to tax themselves for library services libraries are funded at a per-capita level that is twice as high as those that depend on appropriations from municipalities. In addition, public referenda on public library budgets consistently pass at a rate that is higher than 90%. Furthermore this type of funding provides financial stability because once approved by voters, the library's budget cannot be reduced unless the library board requests a decrease in funding. In addition, elected library boards allow taxpayers to determine the makeup of the policymaking library board.
3. How many types of public library districts are there?
The two most common types of public library districts are School District (or Joint School District) Public Libraries and Special (or Consolidated) District Public Libraries. Association Libraries may qualify as a public library district if their bylaws provide for an elected board and they derive more that 90% of their operating revenue from a public referendum. See: Types of Libraries -- A Comparison
4. How does a library become a School or Joint School District Public Library?
5. Is a School District/Joint School District Public Library controlled by the school district?
No. A School District or Joint School District Public Library is an independently chartered entity governed by the elected library board and is not controlled by the school district(s). The law requires that the school district(s) provide certain services on behalf of the School District Public Library but the school district(s) has no say in its operations or funding.
6. Who collects taxes for a School District/ Joint School District Public Library?
Taxes approved by voters for the operation of a School District/Joint School District Public Library are collected in the same manner as tax money to support the school district(s). If the school district(s) collects its own taxes, then it must collect taxes on behalf of the Public Library and turn those funds over to the library board. Taxes for a School District/Joint School District Public Library will show up as a separate line on property tax bills. School Districts have a legal obligation to cover operating expenses of the School District/Joint School District Public Library until the library taxes approved by voters are collected.
7. Can a School District Public Library serve more than one school district?
No. The service area of a School District Public Library can only encompass one school district. If an area larger than one school district is viable to include in a library’s service area or to join together with other libraries it is wise to consider creating a Joint School District Public Library or Consolidated Special Library District.
8. How are trustees of a School District District Public Library determined?
The number of trustees of a School District Public Library can range from 5 to 15 and terms of office are usually 3 or 5 years. All registered voters within the school district are eligible to run for a seat on the library board. To be eligible for election, each candidate must submit a petition signed by either 25 registered voters within the school district or 2% of the number of people who voted in the last school district election, whichever is greater.
9. How are trustees of a Joint School District Public Library determined?
The number of trustees of a Joint School District Public Library can range from 5 to 15 and terms of office are usually 3 or 5 years. All registered voters within the school district(s) are eligible to run for a seat on the library board. To be eligible for election, each candidate must submit a petition signed by either 25 registered voters within the school district or 2% of the number of people who voted in the last school district election, whichever is greater.
Education Law §260(1)
permits representation on the board of trustees to be proportional between each cooperating district. Though this is certainly politically appropriate when the district is created, experience has shown that over time, some districts eventually choose to hold their trustee elections “at large”. The details of representation should be thoroughly discussed prior to the vote to establish the new library district.
10. Can school district or town board members or other public officials serve on the boards of public library districts?
Any registered voter within the School District/Joint School District Public Library or a Special/Consolidated District Public Library service area is eligible to serve on the library board provided they collect the required number of signatures to be placed on the ballot and receive enough votes to serve.
11. How does a library become a Special or Consolidated District Public Library?
See: Steps for Creating a Special or Consolidated District Public Library
12. How are the boundaries (service areas) of a Special or Consolidated District Public Library determined?
For the most part, the service area of a Special or Consolidated District Public Library can be freely drawn to mirror library usage patterns. District boundaries can encompass more than one town or school district or portions of towns and/or school districts to be served but must be "mappable" -- that is, they should not split census blocks. The proposed boundaries of the district are spelled out within the State legislation that authorizes the local election to create the district and should be reviewed in advance by the regional public library system and the New York State Library's Division of Library Development. Registered voters within the proposed boundaries of the district will be eligible to vote at the local election to create and fund the district.
13. How are trustees of a Special or Consolidated District Public Library determined?
The number of trustees of a Special or Consolidated District Public Library, terms of office and the nomination process for library board candidates are specified within the State legislation that authorizes the local election to create and fund the library district. All registered voters within the library district are eligible for election to the library board unless otherwise specified in the legislation.
14. Is a "home rule" message necessary to create a Special or Consolidated District Public Library?
"Home Rule" is provided for by the State constitution. Simply put, it requires that any legislation to be considered by the State legislature that will affect local municipal finances must be endorsed by affected local municipalities. A "home rule" message usually takes the form of a resolution by a town, village, city or county municipal board that they endorse or at least do not oppose the proposed legislation.
Library district legislation is considered educational and as such by law is not subject to "home rule" review. However, local state legislators may still want to know if municipalities within their district have any objections to the library legislation before they introduce a bill to create a library district. Therefore, it is strongly recommended that any attempt to create a public library district be discussed in advance with local municipal officials to determine if there are any major objections.
15. Who collects taxes for a Special or Consolidated District Public Library?
Municipalities within the district collect taxes approved by voters for the operation of a Special/Consolidated District Public Library. In some cases, this is a county or even multiple counties depending on the service area of the district. In other cases, a town or multiple towns may collect taxes if the district service area spans more than one. In either case, once the taxes are collected they are turned over to the library board. Taxes for a Special/Consolidated District Public Library will show up as a separate line on property tax bills. It should be noted that no municipality or school district has legal responsibility for covering the operating expenses of a newly created Special or ConsolidatedDistrict Public Library until its first taxes are collected. Libraries making the transition to this type of district should have plans for covering a potential gap in revenue. See: Collecting Taxes
16. Who covers shortfalls in tax collections for a School District/ Joint School District Public Library or a Special Legislative District Public Library?
When voters approve a dollar amount for a School District or Special/Consolidated District Public Library, the whole amount should be paid over to the library regardless of shortfalls in tax collections. Shortfalls are covered by the tax collecting body that also has authority to foreclose on properties. This is normally a county, town or school district. However, a taxing authority is permitted to charge back to the library a proportionate amount of the tax refunds it is required to make as a result of court ordered assessment reductions.
17. Can a public library district bond for capital projects?
Both a School District/Joint School District Public Library and a Special/Consolidated District Public Library are able to place propositions before voters authorizing bonding for capital projects. If the School District/Joint School District Public Library bonding proposition passes, the school district(s) must bond for the authorized amount. The State legislation that authorizes the local election to create a Special or Consolidated District Public Library should specify the municipality that will issue bonds on behalf of the district. If voters approve a bonding proposition for a Special/Consolidated District Public Library, the municipality specified in the State legislation will issue bonds on behalf of the district. Association Library Districts cannot place bonding propositions on the public ballot. They do, however, have the option of pursuing the ability to bond through the NYS Dormitory Authority by requesting legislative authority through their state representatives.
18. What happens if the vote to create a public library district is approved by voters?
Once the creation of a School/ Joint School District or Special/Consolidated District Public Library is approved by voters, the newly elected board of trustees must meet and, within 30 days and file paperwork with the Division of Library Development in order to apply to the Board of Regents for a charter and registration. Once the new library district is chartered and registered, the board of trustees of the library being replaced must file paperwork to formally dissolve and transfer its assets to the new library district. Upon receiving its charter and registration, the new library district board becomes the policy making body and is in charge of the library. The library board being replaced no longer has a policy making role but may continue to meet to follow-through with the dissolution and asset transfer process. This is a brief overview of the steps, for a detailed list see: After the Vote: A Checklist
19. What happens if the vote to create a public library district is rejected by voters?
If a vote to create a public library district to replace an existing library is rejected by voters, the existing library continues to operate and must find other means of financial support. This is why it is extremely important for a library to discuss the process in advance with local municipal officials to ensure that funding for the library will continue in the event the vote to create and fund the new district fails.
20. How long does it take to become a public library district?
It is recommended that the libraries begin the planning to create a public library district at least a year in advance of the vote. The library board should discuss and resolve critical issues regarding the disposition of the library's existing endowment and or facilities; funding to be requested for the new district; governance details; level of support by local municipal and/or school officials; the petition process to create the district; and strategies for the education and advocacy campaigns that will inform and encourage voters to vote in favor of creating the new district. The timeline should include several months to implement the education and advocacy campaigns. If a Special Legislative District Public Library is being created, time must also be budgeted for the introduction and passage of the State legislation that will authorize the local election to create the district.
21. How much does it cost to create a public library district?
The cost of creating a public library district can vary greatly. Potential expenses may include: hiring specialized expertise (marketing, public relations and/or library consultants); legal fees; printing and distribution of educational and advocacy materials; media advertising; election expenses; and charter application fees. It is not always necessary to hire outside consultants or to spend considerable sums on promotional and advocacy materials and media advertising. Each situation is different and library boards should discuss the need for these services, and which are appropriate to pay from public funds, before embarking on the effort to create a public library district and establish a budget for the process accordingly.
22. Once approved by voters can tax support for a public library district be reduced?
Once voters approve a funding level for a School/Joint School District Public Library or a Special/Consolidated District Public Library, the amount cannot be reduced unless the library board seeks a reduction at a subsequent election.
23. How does a library become an Association Library District?
An Association Library can be considered a public library district if it receives more than 90% of its operating revenue via public ballot and it has a process that enables eligible voters within its service area to elect trustees. Options available for a public budget vote include placing funding propositions on either a school district ballot or a municipal ballot as provided for by Section 259 of New York State Education Law.
24. How are trustees of an Association Library District determined?
The number of trustees of an Association Library District can range from 5 to 25. The number of trustees and terms of office are specified within the library’s charter. The bylaws of an Association Library District must specify a process for nominating and electing trustees that provides all eligible voters within the library’s service area to run for a seat on the library board and to vote at an annual meeting to elect trustees. See: Association Libraries and Trustee Elections.
25. How is a school district public library different from an association library using the school district ballot §259(1) option?
A school district public library is chartered as such and inherently has publicly elected trustees and the opportunity to annually approach taxpayers of the district to consider increases to the library’s tax levy. An association library remains an association library even once it has a successful 259.1 vote. These libraries do not automatically have publicly elected trustees unless the board approved bylaws call for this and provide the procedures for such an election, nor do they automatically have an annual referendum, they need to proactively approach the school board to be placed on the ballot each time they would want to seek an increase.
26. What happens to employees of a library when it is replaced by a new public library district?
In most cases, the employees will automatically become employees of the new library district under the same terms and conditions of employment. This normally means that salaries, benefits and seniority remain unchanged. Since public library districts (but not association districts) are subject to civil service, employee titles may change and subsequent appointments within the library will be governed by civil service rules and regulations. It is important to discuss this process with the local civil service department.
If the chartered population of the new district is greater than the library it is replacing, a higher level of state standards may be required, including education requirements for the director. In these cases, a library district may request a variance for the incumbent director. The variance process must be repeated each year and the library must provide a plan that will ensure that the education standard will be met within a specific time period.
27. Is a new public library district automatically tax-exempt?
Once a new public library district is chartered by the Board of Regents it is automatically tax exempt in the eyes of New York State. In addition, because public library districts are generally considered by the IRS to be state or local government entities, they are not required to pay federal income tax. If asked by a donor or Foundation to provide a tax-exempt number or determination letter to prove its status as a tax-exempt organization, a library may contact the IRS for a letter describing the tax status of government entities. In some cases a library may wish to qualify as a 501c3 tax exempt organization under the tax code rather than as a governmental entity. In this case the new library must file IRS form 1023 in order to obtain a new determination from the IRS.
In any case, it is important to note that the federal tax exemption does not automatically transfer from an existing library to a new public library district.
28. How can a public library district invest its surplus funds?
Public library districts are considered public institutions and therefore are restricted in the types of investments they can make. See: Public Library Investments
29. Where can I obtain more information on becoming a public library district?
In addition to the resources in this toolkit, libraries seeking more information on becoming a public library district should contact their public library system as well as the New York State Library's Division of Library Development. Other sources of information include libraries that have already made the transition to become a public library district and the New York State Library's Division of Library Development website.