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

A guide for New Mexico public libraries to refer to when completing the Annual Report and State Grants-in-Aid Application

State Grants-in-Aid Program

The full payment for FY23 State Grants-in-Aid allocations were disbursed to eligible libraries in January 2023. Please check with your finance department to ensure the allocation was received. 

IMPORTANT: FY23 state aid funds can be used for eligible purchases that date back to July 1, 2022, since that is when FY23 began. ALL FY23 State Aid funds must be expended by June 30, 2023.

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.

All Things State Grants-in-Aid Recorded Zoom Meeting

Access the recorded meeting using the link below

State Grants-in-Aid Expenditure Guidance Sheet

The 4.5.2 New Mexico Administrative Code (NMAC) governs State Grants-in-Aid to public libraries. To be eligible to receive state aid, recognized New Mexico public libraries must meet eligibility requirements as outlined in the 4.5.2 NMAC. All state grants-in-aid funds received must be expended or encumbered during the fiscal year in which they are given (before June 30 each year).

This is not an exhaustive list of all allowable and non-allowable expenditures. If there are questions as how to expend state aid funds, please contact for clarification prior to making purchases.

State Grants-in-Aid Process

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 state grants-in-aid appropriation is part of the New Mexico State Library's (NMSL) annual budget given by the state legislature. As such, the total appropriation amount to be divided amongst eligible libraries is not known until the NMSL receives its upcoming fiscal year's budget and accounts for other budgeted expenses. This usually occurs in late Summer.
  • State aid grant allocations are likely to vary each year and estimations of what an eligible library can expect 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.
  • A library's annual budget should not be prepared/based on the possibility that it may receive state grants-in-aid and/or state GO bond funding.
    • The 4.5.2 NMAC, DISTRIBUTION OF FUNDS, E. Maintenance of effort states, "A library’s local budget shall not be reduced by its governing body as a result of eligibility for the state aid program. Upon demonstrated evidence that such a reduction has occurred, the library shall be ineligible to receive funds from the library grants award for one year after the reduction has occurred."
  • 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. 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 the 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 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
  • 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 ( 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.