TITLE: CONCERNING THE ESTABLISHMENT OF A PROGRAM OF STATE GRANTS TO PUBLICLY-SUPPORTED LIBRARIES FOR THE PURCHASE OF EDUCATIONAL RESOURCES, AND MAKING AN APPROPRIATION THEREFOR.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues Cash Fund Exempt	$2,000,000
State Expenditures General Fund Transfer Cash Fund Exempt	$2,000,000 up to $2,000,000	$50,000
FTE Position Change	0.5 FTE	0.5 FTE
Other State Impact: None.
Effective Date: Upon signature of the Governor.
Appropriation Summary for FY 1999-2000: Department of Education - $2,000,000 and 0.5 FTE - Cash Fund Exempt; and $2,000,000 adjustment to the annual appropriations bill (set-aside)
Local Government Impact: Allows public libraries, school libraries, academic libraries, and special libraries to apply for educational grants.

This bill (as amended by the Senate Appropriations Committee, March 30, 1999) establishes the "State Grants for Libraries Act" under the Department of Education to make grant monies available to publicly-supported libraries to enable them to obtain educational and informational materials and electronic resources that they would otherwise be unable to afford. The bill allows the governing body of any eligible participant to submit an application to the State Librarian to request a grant.

The bill specifies certain conditions that each participant must agree to in order to obtain grant moneys. The State Librarian is to provide official application forms and determine the information to be provided on the forms. The bill specifies the State Librarian's duties in administering the program, including the authority to approve requests for grants and determine the amount of money to be awarded. The bill stipulates how the grant amounts may be determined for public libraries, school libraries, academic libraries, and special libraries. The amount of total grants to each library are limited to $25,000. The bill requires all eligible participants who receive grants to submit an annual report to the State Librarian.

The bill creates the State Grants to Publicly-Supported Libraries Fund to consist of moneys appropriated by the General Assembly and all moneys collected by the State Librarian. All moneys in the fund are to be subject to annual appropriation. The bill authorizes up to 2.5 percent of the moneys in the fund to be used for the administrative costs of the State Librarian. Any unexpended moneys of that amount may be distributed to the regional library service system to assist publicly-assisted libraries in meeting the eligibility criteria. Any moneys in the fund at the end of a fiscal year are to remain in the fund and any investment earnings of the fund are to remain in the fund.

The amended bill: 1) reduces the amount of the capital construction fund appropriation to the Department of Transportation for FY 1999-2000 by $2,000,000; 2) reduces the General Fund appropriation to the capital construction fund for FY 1999-2000 by $2,000,000; 3) appropriates $2,000,000 from the state General Fund to the State Grants to Publicly-Supported Libraries Fund; and 4) appropriates $2,000,000 and 1.5 FTE from the State Grants to Publicly-Supported Libraries Fund to the Department of Education for allocation to the State Library for FY 1999-2000.

This bill authorizes federal grants and other gifts, grants, and donations from individuals, private organizations, and foundations to be credited to the State Grants to Publicly-Supported Libraries Fund. The amount of any gifts, grants, and donations are considered to be exempt from TABOR spending limitations. This fiscal note cannot assess the amount of these moneys, if any.

Additionally, any unexpended portion of the fund balance will earn interest at an annual rate of 5.5 percent.

Department of Education. The bill requires the State Librarian under the Department of Education to administer the grant program. The bill authorizes the department to use up to 2.5 percent of the moneys in the fund, or up to $50,000, for annual program administration. Any unused portion is to be distributed to the regional library service system to assist publicly-assisted libraries in meeting the eligibility criteria. This bill is silent on the amount of any future appropriations, if any. Therefore, the amount of annual grants, administrative expenses, and moneys to be distributed to the regional library system is dependent upon the amount of any unencumbered fund balance.

The department's annual administrative expenditures, shown in Table 1, are based upon the assumption that eligible applicants include 29 academic libraries, 115 public libraries, 176 school districts, and an unknown number of special libraries.

Department of Transportation. The amended bill reduces the capital construction fund appropriation to the Department of Transportation by $2,000,000 for FY 1999-2000 . This amount has not been allocated to specific capital construction projects for the department.

This bill allows public libraries, school libraries, academic libraries, and special libraries to apply for educational grants.

The amended bill will require the following state appropriations for FY 1999-2000:

• a General Fund appropriation reduction of $2,000,000 to the capital construction fund (annual appropriations bill);

• a capital construction fund appropriation reduction of $2,000,000 to the Department of Transportation (annual appropriations bill);

• a General Fund appropriation of $2,000,000 to the State Grants to Publicly-Supported Libraries Fund; and

• a State Grants to Publicly-Supported Libraries Fund appropriation of $2,000,000 and 0.5 FTE to the Department of Education for allocation to the State Library.

Table 1 - Department of Education State Grants to Publicly-Supported Libraries Fund Expenditures
	FY 1999-2000	FY 2000/2001
Personal Services Admin Asst II - 0.5 FTE PERA/Medicare Total	0.5 FTE - $10,176 1,308 $11,484	0.5 FTE - $10,176 1,308 $11,484
Operating Expenses	6,500	6,500
Non-recurring Expenses	$1,975	0
Regional Library Systems (7)	$30,041	Dependent upon available fund balance
Total Expenses	0.5 FTE - $50,000	0.5 FTE - $50,000