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

State Grants-in-Aid Process

• The 4.5.2 New Mexico Administrative Code (NMAC) governs the state grants-in-aid program.
• The program is intended to supplement and encourage local effort in providing library services. State aid funds are not meant to be the primary source of operating income.
• The total appropriation available for distribution among eligible libraries is not known until the New Mexico State Library (NMSL) receives its annual budget, typically in late summer.
• Estimates of individual library allocations cannot be provided, as amounts depend on both the total appropriation and the number of eligible libraries.
  • A library's annual budget should not be prepared or based on the possibility that it may receive state grants-in-aid and/or state GO bond funding, TLP and RLP grants.
    • The 4.5.2 NMAC, 4.5.2.10 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."
• Grant amounts vary annually, based on the appropriation provided by the state legislature and other NMSL budget priorities.
• To be eligible, a library must be recognized by the NMSL as a developing or full public library.
• The Annual Report (AR) serves as the application for State Grants-in-Aid. It is available online from July 1 to mid-August.
• Information submitted in the AR is used to determine eligibility according to 4.5.2 NMAC.
• Once the AR closes, the NMSL reviews submissions to determine which libraries meet eligibility criteria. 
• If a library is found ineligible, the Library Director will receive a denial letter via email. The director may appeal the decision by submitting an emailed appeal to the State Librarian within 10 days of the notification.
  • The State Librarian will schedule a meeting with the New Mexico State Library Commission to review all denials and appeals.
  • Libraries that submit an appeal are invited to attend this meeting.
  • The State Librarian will email the director a written decision within 30 days, which is final.
• Once eligibility is confirmed, the total appropriation is divided equally among all eligible libraries. A library’s legal service area (LSA) is not a factor in determining the allocation.
  • Eligible full public libraries receive one (1) full share;
  • Eligible library branches receive one-half (.50) share, and

• • Eligible developing libraries receive at least one-quarter (.25) share.
• Each Fall, a grant agreement packet is emailed to the Library Director. The NMSL uses DocuSign to facilitate electronic signature.
• The grant agreement must be electronically signed by an authorized agent (someone with authority to enter into legal contracts on behalf of the library) within 60 days of receipt. If not submitted within this time frame, the library forfeits the grant.
• After the library’s authorized agent electronically signs the agreement, it is routed to the State Librarian for electronic signature. Once fully executed, a copy is automatically emailed to the Library Director via DocuSign.
• After execution, a payment request is prepared and sent to DCA finance for processing.
  • Payments are issued via check or electronic fund transfer.
  •  Libraries receive funds directly.
  • In odd-numbered fiscal years, the 50% Rule applies:
    • 50% of the allocation is disbursed before the end of the calendar year.
    • The remaining 50% is disbursed in the next calendar year (typically January or February).
• State aid funds may be used for eligible expenses dating back to July 1 of the fiscal year in which the grant was given.
• All spending must comply with 4.5.2 NMAC.
• The State Grants-in-Aid Expenditure Guidance Sheet, available on the NMSL website under “Grants,” outlines allowable expenses.
• Library directors should share the guidance sheet with financial officers and relevant staff. This is not an exhaustive list. If there are any questions, call the Library Development Bureau at 1-800-340-3890.
• To maintain eligibility for future funding, ALL state aid funds must be spent or encumbered by June 30 of the current fiscal year

• The State Aid Expenditures Tracking Sheet must be complete and submitted via email (in Excel format) to the State Data Coordinator before June 30.

• The Annual Report requires a breakdown of state aid spending. Use the completed tracking sheet to help complete this section of the AR.

Recent State Grants-in-Aid allocations to New Mexico Public Libraries can be found on the New Mexico State Library's website.

Download and save the applicable tracking spreadsheet to complete and submit to the State Data Coordinator before June 30, 2025.