State Librarian Jenny Stapp told the Joint Appropriations Subcommittee, Section E, on a budget deep dive that the Montana State Library has adjusted services across programs after a sharp decline in revenue from the Montana Geospatial Information Act (MGA).

Stapp said the agency had to “put a hard stop on all the grants that had been awarded” and did not award MGA grants in FY25 to manage that funding shortfall. The presentation reviewed central services, patron and local library development services, and GIS/data programs and outlined cost drivers, outsourcing decisions and possible federal grant applications that could affect program funding.

Why it matters: the State Library administers statewide shared services—catalog systems, interlibrary courier, talking‑book circulation, digital collections and hotspot lending—that many Montana public, school and special libraries rely on for cost efficiencies. Changes in a single funding stream (MGA) have led the agency to pause grants and shift how it supports local libraries, with potential operational effects for rural and smaller libraries.

Stapp described how a fixed cost for GIS licensing was created by 2021 legislation and is allocated to agencies that use GIS software; she said the original fixed cost was set at just under $400,000 in 2021 and that the amount was reset in coordination with the budget office for the current biennium. She also said agencies with heavier utilization pay more under that allocation model.

The agency described several program‑level adjustments and efficiencies:
- Talking books: the State Library contracts with the Utah State Library for day‑to‑day talking‑book services. Stapp said moving to that contract in 2022 improved circulation and saved the State Library about $200,000 a year. The program serves roughly 2,000 Montanans in 53 counties; the library staff estimate many more Montanans are eligible but not enrolled.

- Resource sharing and the Montana Shared Catalog: the State Library administers the shared catalog that 210 public, school and special libraries use. Stapp said participation yields substantial local savings (she cited the Billings Public Library’s roughly $40,000 annual cost comparison and Great Falls’ reduction from roughly $47,000 to about $20,000 after joining the shared catalog). The shared catalog underpins Montana Library to Go (ebooks/audiobooks) and the statewide courier.

- Courier and interlibrary sharing: the agency runs a statewide courier on major transportation routes; Stapp said shipping via crate brings per‑item costs to about $0.25 versus about $6.20 per item via the U.S. Postal Service, producing large efficiencies where the courier operates. She noted the courier does not reach all parts of the state (for example, it currently stops north of Great Falls and does not serve the far northeast corner).

- Hotspot lending: the statewide hotspot program originated with COVID funding and has used coal severance tax funds for data plans in later years. At peak the program lent about 1,000 mobile Wi‑Fi hotspots; Stapp said about 850 remain in circulation. The agency uses state term contracts with major carriers and reports the hotspot plans are unlimited data plans; local libraries control circulation periods (commonly two weeks). The library also reported it applied as a subrecipient on competitive federal Digital Equity Act grants administered by other state agencies (Administration and Labor) that, if awarded, could fund the program further.

- Consulting, federations and continuing education: the State Library enforces public library standards (adopted as administrative rule and reviewed in 2022–2023) that determine state aid eligibility. Stapp said state aid is a statutory appropriation at $0.50 per capita (decennial census basis) that is distributed to eligible libraries; the agency reported about $500,000 in total state aid (FY24 figures) shared among roughly 82 public libraries and four tribal college libraries that recently qualified. Federation grants (regional library networking) are funded from coal severance tax dollars and are administered via plans of service reviewed by the State Library Commission.

Committee members asked about staff levels and positions: Stapp described the State Library’s three functional areas (central services, patron/local development services, GIS/data programs), noted a small central services staff that administers a large IT footprint (she cited about 22 servers and about 700 terabytes of data), and said central services budgets show about 9–10 positions budgeted for that program and additional positions across other program areas.

On outreach and equity, the State Library highlighted gaps and partnerships: the talking‑book program serves a small percent of the potentially eligible population, and staff cited limitations in outreach capacity (there is no dedicated public information officer). Stapp described partnerships with the Historical Society for the Montana History Portal, with the Treasure State academic consortium to license journals and professional resources, and an ongoing creative‑aging collaboration with the Montana Arts Council.

Public comment: Brian Rossman, the commissioner representing the Montana University System on the State Library Commission, testified in support of the library staff and the agency’s statewide role. "The investment in the state library saves taxpayers money and improves the lives of the citizens of Montana," Rossman said.

Next steps: Chair Beatty told members the committee will revisit the State Library’s GIS programs (including the natural resource information system fixed‑cost rate) at a future meeting and that the committee will formally act on the natural resource information system fixed cost rate in a forthcoming executive action. The committee scheduled reconvening and additional hearings; Stapp and staff said they will provide requested details (including documentation on the fixed cost allocation, outreach metrics, and hotspot equipment lifespan) to the committee.

Sources: presentation and responses by State Librarian Jenny Stapp and State Library staff; public comment from Brian Rossman, Montana State Library Commission.