Annual Report and State Grants-in-Aid Application for Public Libraries: State Grants-in-Aid Information

IMPORTANT: The full payment for FY23 State Grants-in-Aid allocations will be disbursed to eligible libraries in early January 2023. As such, it is important to have a definitive plan in place for how the funds will ALL be expended by June 30, 2023. Please keep in mind that FY23 state aid funds can be used for eligible purchases that date back to July 1, 2022, since that is when FY23 began.

Accurately completing the Annual Report serves as a recognized Public Library's application for State Grants-in-Aid.

• The 4.5.2 New Mexico Administrative Code (NMAC) governs the State Grants-in-Aid program.
• Once the Annual Report closes, each library's survey is reviewed using the 4.5.2 NMAC to determine state grants-in-aid eligibility.
• The New Mexico State Library currently recognizes 97 public libraries.

State Grants-in-Aid Process

• The 4.5.2 New Mexico Administrative Code (NMAC) governs the state grants-in-aid program.
• The state grants-in-aid program is intended to supplement and encourage local effort in providing local library service. State grants-in-aid allocations are not intended to be a main source of operating income.
• The total amount of the state grants-in-aid appropriation to be divided amongst eligible libraries is not known until the New Mexico State Library (NMSL) receives its upcoming fiscal year's budget. This usually occurs in late Summer.
• Estimations of what an eligible library can expect as a state grants-in-aid allocation cannot be provided as it is dependent on the amount of the state grants-in-aid appropriation as well as the number of eligible libraries.
• State aid grant allocations may vary by year, depending on the amount of the appropriation provided to the state library by the state legislature and the state library’s other budgeted expenses.
• The first step in state aid eligibility is for a public library to be recognized by the New Mexico State Library (NMSL) as either a developing or full public library.
• The Annual Report serves as the state grants-in-aid application for both a developing and a full public library and is available to complete online July 1 through mid-August. Information provided in the annual report is used to determine a public library’s eligibility for state aid. Once the annual report closes, information reported for all recognized public libraries is reviewed to determine eligibility.
• The amount allocated to individual public libraries depends on the number of public libraries that meet 4.5.2 NMAC eligibility criteria.
• If a public library is not eligible for state aid, a denial letter is sent to the Library Director via email. The Library Director has a choice to appeal the decision. The appeal is made in writing and/or by email to the State Librarian within 10 days of denial notification. The State Librarian will schedule a meeting with the New Mexico State Library Commission to discuss all denials and appeals received. Libraries who submit an appeal are invited to attend this meeting.
  • The State Librarian will respond in writing with a decision within 30 days. The State Librarian’s decision is the final action on the matter.
• Once the number of eligible public libraries is determined, the appropriation is split equally among all eligible full public libraries and any eligible public library branches, with developing public libraries’ receiving at least a quarter of a share. The Legal Service Area (LSA) population for eligible libraries is not used to calculate state grants-in-aid allocations.
  • Full public library = one (1) share
  • Eligible public library branch = one half (.50) of a share
  • Developing public library = at least a quarter (.25) of a share
• A grant agreement packet is sent to the library director via email each Fall. The NMSL currently utilizes DocuSign for state grants-in-aid grant agreement packets.
  • The grant agreement must be electronically signed (using the DocuSign link) by an authorized agent who has authority to enter into a legal contract with the State of New Mexico and returned to the state library within 60 days of receipt. If a library does not submit the grant agreement within the required time-period, it forfeits the grant award.
• Once the grant agreement is electronically signed via the DocuSign link, it goes directly to the State Librarian for electronic signature. Once the State Librarian electronically signs the grant agreement via the DocuSign link, a complete copy is sent via DocuSign to the library director.
  • Once a fully executed grant agreement is received, the State Data Coordinator prepares a request for payment, which is sent to DCA finance for processing.
  • Payments arrive via check or electronic fund transfer. State aid allocations are not subject to a reimbursement process.
  • IMPORTANT: In odd-numbered fiscal years, state aid allocations are disbursed using the 50% Rule. This means that half of the total allocation is distributed before the end of the calendar year, with the other half getting distributed sometime in January/February.
  • State aid funds can be used for eligible purchases that date back to July 1 of the fiscal year in which the grant was received (July 1 - June 30).
• The 4.5.2 NMAC indicates how state aid allocations can be spent. There is a State Grants-in-Aid Expenditure Guidance Sheet on the New Mexico State Library website (under Grants) to assist with applicable expenditures.
  • The Library Director should provide a copy of the State Grants-in-Aid Expenditure Guidance Sheet to the financial officer and other interested individuals.
  • The State Grants-in-Aid Expenditure Guidance Sheet is not an exhaustive list. If there are questions, contact Carmelita.Aragon@dca.nm.gov.
• To remain eligible for future state grants-in-aid allocations, ALL state aid funds received must be spent in compliance with the 4.5.2 NMAC before the end of each state fiscal year, June 30.
• NEW: The State Aid Expenditures Tracking Sheet is required to be completed and submitted to Carmelita Aragon via email (Carmelita.Aragon@dca.nm.gov) before the end of the state fiscal year, June 30.
• The Annual Report also asks for a breakdown of how state aid funds were spent. The completed tracking sheet will assist with completing this section of the Annual Report.
• See the New Mexico State Library website (under Grants --> State Grants-in-Aid to Public Libraries) for recognized public library state aid allocations.