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State Library faces federal grant termination; May Revision moves digitization money to sustain operations
Summary
The state librarian told the subcommittee that the Institute of Museum and Library Services terminated a Library Services and Technology Act grant, creating a multi‑million dollar hole; the May Revision repurposes some one‑time digitization funds to support operations and clarifies Braille Institute funding.
The State Library informed the Senate Budget Subcommittee that the Federal Institute of Museum and Library Services (IMLS) terminated a Library Services and Technology Act (LSA) grant in April, creating uncertainty over roughly $15–16 million in annual federal support.
"On April 1, we were told without warning and without justification that money for library to support libraries in California was being terminated by the federal government," the State Library representative told the committee. The Department of Finance and the library said the termination left about $3.4 million unobligated in the current fiscal year and a potential multi‑million dollar shortfall for ongoing operations.
To respond, the May Revision reappropriates $4.3 million of an earlier one‑time general fund appropriation (originally for a comprehensive digitization strategy) to temporarily support State Library operations, and it reduces federal‑funded expenditure authority to reflect lost grant revenues. The administration also included provisional language to maintain $500,000 in General Fund support for the Braille Institute of America in Los Angeles.
Legislative Analyst staff said the digitization transfer preserves parts of the program but cautioned the action is a short‑term fix and the IMLS situation should be closely monitored. The State Librarian also reported that the federal position later changed and the library has received partial payments, though timing and certainty remain fluid.
Ending: Committee members asked finance and the State Library to continue working with federal officials and to return with updates so the Legislature can act if the federal funds are restored or further shortfalls emerge.
