State Aid Program

Since 1941, the North Carolina General Assembly has provided appropriations to support public library services throughout the state. These funds are distributed under legislation known as the Aid to Public Libraries Fund, commonly referred to as “State Aid.” Administered by the State Library of North Carolina under the Department of Natural and Cultural Resources, this program is designed to promote, aid, and equalize access to public library resources and services across North Carolina. The statutory basis for this funding lies in General Statute 125-7b and related provisions, which outline both the authority and mechanism for fund allocation. The purpose of the State Aid program is to strengthen the operational capacity of local public libraries, enabling them to provide comprehensive services to their communities. These funds may be used for a variety of operational costs including salaries, materials, and equipment, but not for capital improvements or real property expenditures. The program provides both block grants and per capita equalization grants, ensuring that funding is fairly distributed based on population and income indicators. The State Library allocates these funds based on a formula approved by the North Carolina State Library Commission, and payments are disbursed monthly following a biannual determination in December and July. To be eligible, libraries must comply with North Carolina Administrative Code 07 NCAC 02I .0201 and other related state laws. Key requirements include being officially established under Article 14, Chapter 153A of the North Carolina General Statutes; operating a cataloged facility open at least 40 hours per week; employing a full-time library director eligible for North Carolina Public Librarian Certification; and securing operational funding from local government sources that meets or exceeds both the average of the past three fiscal years and the amount received from State Aid. Libraries must also demonstrate sound fiscal management by submitting annual audits and meeting maintenance of effort (MOE) requirements, which ensure sustained local financial support. Applications for State Aid must include several forms and documents: FORM A (Local Funder MOE), FORMS B–E covering various financial and personnel assurances, and FORMS G–I, including expenditure and appropriation tracking, and director certification. Additionally, libraries must submit a five-year strategic plan, Board of Trustees bylaws, and a financial report for the fiscal year ending June 30. The annual Public Library Survey must be submitted through the designated portal by September 15, and the overall State Aid application is due by the same date each year. Documents should be emailed to [email protected] with the subject line "State Aid". Evaluation is based strictly on compliance with statutory and regulatory eligibility requirements. The State Library is responsible for reviewing submitted materials to determine eligibility. Failure to comply may result in reduced or withheld funding. However, if a library does not meet its MOE threshold, funding is not automatically terminated but may be proportionally reduced. Furthermore, unspent State Aid balances exceeding 17% of the previous year’s receipts may lead to reduced future allocations. The benefits of participation extend beyond direct funding. Eligible libraries gain access to federal Library Services and Technology Act (LSTA) grants, E-rate program discounts, continuing education scholarships, participation in statewide initiatives such as NC LIVE and the NC Cardinal Resource Sharing Consortium, and national recognition through the Institute of Museum and Library Services (IMLS). Maintaining eligibility is essential for libraries to continue benefiting from these comprehensive support services.