FY2021 State Budget Update

I have great news about the State’s FY2021 Budget.  When I last wrote about the budget on May 3^rd, we were expecting significant reductions in state funding. All state agencies, including the Georgia Public Library Service (GPLS), were instructed to resubmit their budgets with a 14% reduction of their base FY2020 budget.  We later learned that state funding for Materials would be eliminated, as well as a portion of our System Services Grant, which also impacts materials purchases.

Assuming that the Governor signs the budget as approved by the House and Senate, we expect minimal, if any, decreases for FY2021.  We do not have the exact numbers for FCPL yet, but Julie Walker (State Librarian) shared the following: “...the state grants formula [for individual library systems] was fully funded with no reductions.  Clearly, our public libraries have garnered much good will under the Gold Dome.  GPLS operations will receive an approximate 10% reduction, for which we have a solid plan that will have minimal impact on your libraries.  Overall, public library funding received less than 3% reduction, and that's exceptional news in otherwise difficult budget for state agencies.”

There’s more good news.  Major Repairs and Renovation (MRR) grants were also approved.  We expect to receive MRR repurposing grants totaling $360,000 for the Cumming Library renovation and $100,000 in MRR funds for a generator for the Cumming Library.  The generator will benefit all FCPL locations, as it will prevent other locations from losing internet and Polaris when the Cumming Library has a power outage.  We also expect to receive LibTech funds for specific technology purchases.

The stunning, unexpected news is that the FY2021 budget—again pending Governor Kemp’s signature—includes $2,000,000 for the Fowler Road Library.  The Fowler Road Library was #10 on GPLS’s priority list and we did not expect to receive this grant until the next legislative session, if ever.  This $2,000,000 will be combined with $9,700,000 in SPLOST 8 funding to design, construct, and equip FCPL’s 5^th library.  We are currently working with state and local officials to determine if this grant will result in our starting that project earlier than intended.  The intended plan is to begin design in late 2021, finish design and begin construction in 2022, and finish construction and open to the public in 2023.

The MRR, LibTech, and construction grants are funded through bond sales, making them more feasible during difficult economic times than regular operating expenses that are funded through sales tax and other short-term revenues.  They are also thought to be beneficial to the economy, as they provide income for a variety of workers (e.g., architects, construction workers, materials suppliers).

It is a pleasure to be able to share good news with staff.  Please let me know if you have any questions.