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The Background, Proposal, and Fiscal Effect sections are from the League of Women Voters of California Eduation Fund In Depth: Analysis of Proposition 81.
Public libraries are generally built and operated by cities, counties, and special districts. Local libraries in California receive funding from the state and federal governments for various operating costs. In 1988 they received about $90 million; currently they receive $46 million, according to the state legislative analyst's office (LAO). State funding for operational library expenses under the Public Library Foundation (PLF) was $56.8 million in 2000-01 and $15.7 million in 2003-04. California voters have passed two similar library bond measures.
In many localities, funds have been used to keep libraries open, rather than for new and renovated facilities. A 2003 California State Library survey has identified 579 projects costing $4.4 billion. The needs include technological upgrading, urgent seismic retrofitting and structural repairs, and expanded facilities to keep pace with population growth. Proposition 81 reserves $25 million for "joint use" projects, those that include cooperative agreements between local libraries and school districts in their service areas. Examples of joint use projects include providing local schools with support facilities to access the Internet and computer programs on literacy or building a reading and homework center in the local community library for student use after school. The 2000 library bond measure gave priority to joint use projects. All of the projects for new construction (40 of 45 projects) were joint use projects, with cooperative agreements signed between school districts and public libraries. Most were homework centers, family literacy centers, career centers, or computer centers. One is a "co-located facility," the Mariners Branch Library of the Newport Beach Public Library, now under construction, which will unite the branch library with the Mariners Elementary School Library. Please see the map for all projects funded by Proposition 14 (PDF file). Further information is at http://www.olc.library.ca.gov. Select "Library Bond Act, 2000" and then select "Grant Awards" under Cycles 1, 2, and 3. Approximately 3.4 million adult Californians are at "below basic" literacy levels. They cannot read medicine labels, election ballots, a television guide, or a jury pool summons. They cannot read to their small children. Last year, California Library Literacy Services served more than 20,000 adults on a one-to-one or small-group basis in 780 communities through 103 public library jurisdictions. Currently California's library literacy programs have more than 5,000 adults on their waiting lists. The joint use projects funded by library construction bonds provide spaces where library staff, in cooperation with staff from schools and other agencies, can conduct literacy programs. Two-thirds of adult Americans visited their public libraries in 2005, according to a survey conducted by KRC Research and Consulting for the American Library Association. Seventy percent said they were extremely happy with their public libraries, 85 percent think libraries need more funding, 92 percent believe libraries will still be needed in the future--even with all of the information available on the Internet. The state regularly finds that it cannot fund long-term capital projects on a pay-as-you-go basis because of the pressure of immediate needs. It then may use bond financing, a type of long-term borrowing to raise money for specific purposes. The state gets money by selling bonds to investors. The state repays this money plus interest. The money raised from bonds primarily pays for the purchase of property and construction of facilities, such as parks, prisons, schools, colleges, libraries, and infrastructure. At the outset, the amount of interest and other costs doubles the amount to be borrowed over a period of 25 or 30 years. Under Proposition 81, we would pay $1.2 billion to spend $600 million on construction. Inflation is likely to reduce the actual amount paid back from the state's general fund. A bond measure does not impose a new tax but servicing the bond debt reduces the amount of general fund monies for other uses in future years.
Proposition 81authorizes the state to borrow $600 million through the sale of general obligation bonds to fund 65 percent of the cost of approved projects to construct and renovate public libraries, including equipment and furnishings. The bond measure requires project applicants to contribute 35 percent in matching funds from any other source. Sixty-five percent, between $50,000 and $20 million per project, would be financed by the bond sales. The measure continues the California Public Library Construction and Renovation fund for deposit of bond sale monies to be distributed to authorized projects from city, county, joint city and county, or special district applicants. The measure provides for a seven-member state board to adopt policies for the program and decide which local agencies would receive grants. The board is composed of the State Librarian, the Treasurer, the Director of Finance, an Assembly Member appointed by the Speaker of the Assembly, a Senator appointed by the Senate Committee on Rules, and two members appointed by the Governor. The board must give first priority to eligible applications that were submitted but not funded under Proposition 14 (2000). No more than $300 million of the new funding would be reserved for these applications. The measure reserves $25 million for "joint use" projects serving both a library and a public education institution (such as a school district or college). Factors to be considered when setting priorities for approval of applications include
Facilities funded under this measure must be dedicated to public library direct service use for at least 20 years after completion. All projects must forbid use of project funds for certain administrative services, financing costs, books or other library materials, or ongoing operating costs after completion of the project. This measure requires competitive bidding for all construction contracts and limits construction costs to those considered normal for the area.
According to the Legislative Analyst (LAO), the total estimated state cost would be $1.2 billion over 30 years ($600 million in principal and $570 million in interest). Payments would be about $40 million per year. At an interest rate of 5 percent, the state will pay $2 for each $1 it borrows over a 30-year period. After adjusting for inflation--since a dollar will be worth less in the future than it is today--each dollar borrowed will cost the state approximately $1.30, according to estimates by the LAO. Local agencies would make cash expenditures covering 35 percent of the total project cost. The LAO estimates a one-time overall cost of library projects to local agencies statewide of about $320 million in matching funds. The LAO says that local agencies could face increased annual operating costs of several million dollars after their projects are completed. The increase in operating costs would depend on the extent of the new or expanded facilities.
LWVC position on Public Libraries: Support a public library system as a basic community service with a long-term, assured, stable and adequate funding source. Support access by all persons to public library services as a major source of knowledge and information necessary for informed, active participation in a democratic society.
The rebuttal to the opponents' argument was signed by Bill Hauck, President, California Business Roundtable; Jonathan Lightman, Executive Director, Faculty Association of California Community Colleges; and Ted Lempert, President, Children Now. Other organizations supporting Proposition 81 include the Association of American Publishers; California Alliance for Retired Americans; California Contract Cities Association; California Democratic Party; California Language Teachers Association; California Labor Federation, AFL-CIO; California Library Association; California Nurses Association; California Parent Teacher Association (CAPTA); California Park and Recreation Society; California State Association of Counties; California State Building Trades Council (CSBTC); California Teachers Association; California Teamsters Public Affairs Council; League of California Cities; and SEIU California State Council.
Karen Butter, LWVC Program Director for Public Libraries, libraries@lwvc.org Jack Sullivan, LWVC Legislation Director, legislation@lwvc.org Trudy Schafer, LWVC Program Director/Advocate, 801 12th Street, Suite 220, Sacramento 95814, 916-442-9210, Fax 916-442-7362, tschafer@lwvc.org Yes on Prop. 81--Californians for Literacy and Community Libraries, A Committee Supported by the CA Library Association, 1215 19th Street, 2nd Floor, Sacramento 95814, 916-737-9325, Fax 916-737-1809, www.yesforlibraries.com Visit the campaign Web site to download reference and campaign materials; volunteer and learn about upcoming campaign events; send a message about the proposition to friends; or donate to the campaign. The California Official Voter Information Guide (ballot pamphlet) for the June 6, 2006 Primary Election, www.ss.ca.gov/elections/elections_viguide06.htm Reports of campaign expenditures: http://cal-access.ss.ca.gov/Campaign/Measures/
YES on Proposition 81
Note: Please adapt this letter to your own community and its library needs and check your local paper's word limit for published letters. Editor: Amid all the talk this spring about infrastructure improvements for our communities, one critical need has gone almost unnoticed. California's libraries have not been able to keep up with increasing demand and our growing population. California voters have the chance to address that problem by passing Proposition 81 on June 6. Prop. 81 is a bond issue that will help communities build new public libraries and renovate old ones that need repairs, seismic safety retrofits, or technological upgrades. A 2003 California State Library needs assessment identified 579 such projects around the state. State bonds will provide 65 percent of the money for building and restoration, and local governments 35 percent. This frees up limited local funds for programs and services like children's reading programs and homework centers, assistance for seniors and the disabled, job and career centers, and literacy classes to help many functionally illiterate Californians contribute more effectively in the workforce. New technology will be available to more people, and school-library partnerships will be enhanced. Access to public library services is a major resource for informed, active participation in a democratic society. Please vote YES on Proposition 81. Sincerely, (your name)
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