Funding Formula

Potter-Tioga Library System

SYSTEM BUDGET
The System budget is funded totally by a portion of the State and County Aid received by both counties. Based on population, 1/3 is funded by Potter County and 2/3 by Tioga County. After the System budget is approved by the System Board, a percentage is calculated for each county (the cost of the System budget compared to their total state and county aid). This percentage comes off the top of each check received. Then, the remainder is divided between the libraries by the funding formula.

The percentage for the System covers the salaries of two full-time employees, the costs involved with providing library service to the unserved areas of the counties and to supplement the local library collections. There are 15 deposit libraries provided with quarterly rotating collections and rotating collections of large-type, books on tape and CD are provided to the local libraries. Also, continuing education funds are available to each librarian.
 

The System does no fund-raising because it would impinge on the fund-raising efforts of the local libraries.

DISTRIBUTION FORMULA
Potter County: 25% is divided equally
75% is divided by the local effort percentage

Tioga County: 30% is divided equally
70% is divided by the local effort percentage

The local effort percentage is each library’s local effort (total expenditures from the last annual report minus State Aid, Access PA money and the cost of raising money) divided by the total local effort of all the libraries in the county.

COUNTY AID
Every year we meet with the Commissioners and ask that our appropriation be increased. Tioga County pays in quarterly installments; Potter County makes one payment, usually in June. The percentage to fund the System’s budget is subtracted from the total received and the remainder is split by the distribution formula.

STATE AID
The total amount of State Aid is determined by the State’s budget every year. There are several categories of State Aid including: Quality Libraries Aid (per capita), Incentive for Excellence Aid (based on expenditures per capita), County Coordination Aid, Equalization Aid and Equal Distribution Grants. These are combined into one amount for each county and payments are made in January (90%) and March (10%). After the System’s percentage is deducted the remainder is distributed to the local libraries by the formula, except for the County Coordination Aid, Equalization, and the Equal Distribution Grants.
 

County Coordination Aid has to be used to provide a county-wide library service. In the past, this was used to fund a programming project. When State Aid was so drastically cut, there was not enough money to continue this project. Currently, these funds are used by the System to provide books for the book clubs, continuing education grants and to support the rotating collections. The amount to support the rotating collections is subtracted from the System’s total budget which reduces the percentage needed to fund the System.

The Equalization Aid is based on low personal income per capita, low market value of real estate or high unemployment. This amount is divided equally between the libraries.

All of our libraries qualify for the Equal Distribution Grant and are obliged to spend the grant plus an equal amount of their own money on library materials. This amount is split equally between the libraries.

When State Aid is received, County Coordination Aid is subtracted, then the percentage needed to support the System, then the Equal Distribution grant and Equalization Aid are divided equally. The remainder is then split according to the distribution formula.