April 7, 2003
| TO: | Cla Members/ Systems/ Network Contacts |
| FROM: | Mike Dillon, Lobbyist Christina Dillon, Lobbyist |
| RE: | News From The Capitol |
I. Assembly Budget Subcommittee Hears Testimony Regarding PLF and TBR
Last week, the Assembly Budget Subcommittee Number Two on Education Finance convened to consider the State Library issues in the Governor's January Budget, including possible reductions to the Public Library Foundation and the Transaction Based Reimbursement programs. Specifically, Governor Davis is proposing a $15.8 million cut to the PLF, and the elimination of all $12.1 million in the TBR for 2003-04. The Governor believes that $12.1 million in replacement funding could be achieved by charging patrons $1 for a direct loan, and $5 for an Inter-Library Loan.
You will recall that the PLF was initially targeted by the Governor for reduction during the "Mid Year Cuts" discussion in January of this year. Thankfully, the Assembly Budget Subcommittee, Chaired by Assemblyman Joe Simitian (D-Palo Alto) and the Senate Budget Subcommittee, Chaired by Senator Jack Scott (D-Altadena) rejected the cut and held the PLF baseline at $31.5 million in the current year.
Now, facing a similar cut to the PLF in the Budget Year, the subcommittee wrestled last Wednesday with its options for trying to save the important library program. Testifying before the committee was State Librarian, Dr. Kevin Starr, CLA, representatives from the Legislative Analyst's Office and Department of Finance, CLA Legislative Chair and Contra Costa County Library Director Anne Cain, and Santa Clara County Library Director, Melinda Cervantes.
The Department of Finance representative began by stating, "Given the magnitude of the Budget problem, we were faced with a series of tough choices. Unfortunately when you look at where the bulk of the money is in the State Library Budget, it is in the PLF, and that's why we took money out of there." During CLA's testimony, we called the committee's attention to our now-famous "72 percent cut chart," indicating the chronology of the severe reductions to the PLF, over a two year period. We further argued that the proposed reduction was a disproportionate cut, particularly when compared with other K-12 and higher education proposals. Anne Cain testified as to the dramatic increase in usage and circulation in Contra Costa County. She added that Contra Costa had received $1.3 million in PLF funding in 2001-02, but with the Governor's proposed reductions, that amount will have dropped to $375,000 over an 18 month period.
With regard to the TBR, despite the fact that the subcommittee has not had this issue before them for consideration in recent memory, the members had a very good grasp on the concept and the way in which the program works. CLA called the proposal to eliminate the funding a "disaster" and noted our strong opposition to the fundamental shift in the way library services would be provided under the Governor's plan. Melinda Cervantes told committee members that the unintended consequences of a shift to a fee-based proposal could produce situations where libraries were charging annual fees to non-resident users, as high as $30-50. She added that "there are many people who can't afford that fee. Moreoever, there are rich libraries and there are poor libraries. You will find that the rich libraries will start shutting their doors to non-residents." The subcommittee members had also been briefed by CLA and the State Library regarding the potential loss of approximately $7 million in matching federal LSTA grant dollars, if the TBR state funding is eliminated. During the discussion of this issue, the Department of Finance stated that the reason for shifting the TBR to a fee-based approach was because "what we were faced with was the elimination of services or find a new revenue stream to preserve services. The TBR is something that the Administration will be reconsidering during the May Revision. We are concerned about the potential loss of federal dollars."
Assemblywoman Lynn Daucher flatly stated, "I don't like the TBR proposal." Chairman Simitian added, "I would like to hold both of these items (PLF and TBR) open. I share the concerns of Ms. Daucher regarding the TBR. I would be concerned even if there was no matching federal funding issue. I agree with the individual who said that this is a fundamental change in the way we fund library services. This takes us down a path I would like to avoid going down. Department of Finance, we understand the size of the [Budget] problem, but this is an issue, where $12 million, in the scope of the overall Budget, to turn library services on its ear, is disconcerting to say the least."
The Assembly Budget Subcommittee on Education Finance took no action and will hold these items open until mid May, at which time the Governor's May Revision will be made available. The subcommittees will have a better idea of the state's fiscal picture at that time, and will also know if the Governor will be proposing additional cuts in various programs. The Senate Budget Subcommittee will address the PLF and TBR on Monday, April 28.
II. Assemblywoman Pavley Introduces Funding Bill for Library Books
Assemblywoman Fran Pavley (D-Agoura Hills) has introduced AB 1548, which would create a voluntary tax check-off on an income tax return for the purpose of creating the Public Library Book Fund. The monies raised through this effort would be given to the State Librarian for distribution to public libraries across the state on a per capita basis, for the purpose of purchasing library materials. The tax check-off would have to generate at least $250,000 annually in order to remain on the income tax return form. If passed by the legislature and signed by the Governor, AB 1548 will need to wait in line behind several other tax check-offs that are queued ahead of it: they appear on the tax check-off form based on when they were signed into law. As one tax check-off is removed due to inactivity, another one takes its place. CLA was asked by Assemblywoman Pavley's office to assist her with the development of this measure.
This afternoon, Assemblywoman Pavley presented the bill before the Assembly Revenue and Taxation Committee, and stressed the importance of being able to put books on the shelves in public libraries using a new revenue stream. She noted that her concept is even more important, in light of the difficult Budget situation that the state is facing, and as programs such as the PLF are affected. In addition, Assemblywoman Pavley stated that while the legislature, and subsequently the voters, authorized bond funding for the construction of new and renovated public library facilities, there needs to be funding available to help libraries stock needed materials and books at these new facilities. CLA and the lobbyist for the California State Association of Counties testified in support.
The measure passed from committee on a strong bi-partisan vote, and will now head to the Assembly Appropriations Committee in several weeks for hearing.