Libraries in Indiana “Prepare For Financial Hit”

From the Indiana Capital Chronicle:

Much of the discussion surrounding property tax reform has focused on schools, law enforcement and local government having to cut services due to reduced funding. But libraries are also in line to see impacts from Senate Enrolled Act 1 – legislation passed in April cutting property taxes.

Several Indiana librarians expressed uncertainty about the exact effects of SEA 1, a complicated law that impacts both property and income taxes.

“I wish I knew exactly what all this was going to mean,” said Kim Porter, director of the Batesville Memorial Public Library. “I don’t understand it.”

Two major concerns raised by SEA 1, according to Indiana Library Federation President Julie Wendorf are property tax revenue and the local income tax (LIT) distribution formula. Hoosier homeowners are expected to save an average of $300 in property taxes – the primary funding source for most libraries, according to Wendorf. Paired with changes to LIT formulas, many library’s budgets will feel the strain.

“Library funding across Indiana is not standardized,” Wendorf explained, “each public library receives tax support in a unique manner, influenced by its local property tax rate and access to local income tax revenue.”

The full effects of SEA 1 likely won’t be seen until 2028, by which point many will face “significant reductions to their overall funding,” said Wendorf, “due to both diminished property tax growth and decreased LIT allocations.”

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Filed under: Funding, Libraries, News, Public Libraries