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State Library faces federal grant uncertainty; lawmakers consider one‑time digitization funds and building‑forward reallocation

3431513 · May 21, 2025
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Summary

The State Librarian told the Senate subcommittee that the federal Institute of Museum and Library Services (IMLS) terminated a Library Services and Technology Act grant in April, creating near‑term funding uncertainty; the May Revision proposes reappropriating one‑time digitization funds and maintaining a $500,000 allocation for the Braille

The State Library told the Senate Budget Subcommittee No. 1 on Education that it faces uncertain federal funding after the federal Institute of Museum and Library Services (IMLS) notified California that certain Library Services and Technology Act funds were terminated in April.

Devin Mitchell of the Department of Finance said the federal action removed about $15.7 million in expenditure authority that had been expected across ongoing state library operations and local assistance, and the May Revision proposes to reappropriate $4.3 million of previously allocated one‑time general fund for the library’s digitization initiative to temporarily support state operations. The May Revision also includes language to maintain general‑fund support at $500,000 for the Braille Institute of America in Los Angeles.

State Librarian Greg Lucas said the federal picture is fluid: the federal agency later indicated it would restore some current‑year payments and provide a partial payment for the next federal fiscal year, but the administration’s May Revision assumes the funds are not available. Lucas and Department of Finance staff said they will work to ensure that any federal funds that materialize can be accessed and used for library programs. Lucas asked the Legislature to allow returned or unexpected federal funds and unspent ‘building forward’ appropriations to be applied to projects on an existing waiting list, rather than reverting to the general fund.

The Legislative Analyst’s Office recommended approving a small IT security assessment increase, supported maintaining Braille Institute funding, and noted that transferring unused one‑time digitization funds preserves some goals of the digitization effort though it slows overall timelines. LAO said the IMLS situation “should be closely monitored” and characterized the May Revision actions as a short‑term fix to a potentially longer‑term problem.

The committee did not take action at the hearing. Lawmakers and the library asked staff to seek options to capture federal dollars if they are restored and to consider directing returned building‑forward funds to projects on the existing list of eligible uses.